Reverse Logistics

Reverse Logistics

1. Dimensions of the reverse logistics context

   • Reverse logistics drivers
     • Economic
       • Cheap resources
       • Cheaper than building/buying new products/virgin materials
         • Precious metal recycling
     • Marketing
       • Green profile
       • Service element
         • Taking care of customers waste disposal needs
     • Legislative
       • Public Policy
     • Asset protection
       • Leaking secondary markets or competitors
   • Forms of recovery/Dispositioning options
     • Reused directly
     • Remanufacturing
     • Repair
     • Recycling
     • Disposal
   • Actors
   • Cycle time
     • TIme period with the owner

2. Categories of Reverse Logistics Flows

   • End of use returns
     • products disposed of long after completing use
   • Commercial returns
   • Warranty returns
   • Production scrap and by products
   • Packaging

3. Reverse distribution

   • Commonalities
     • Collection
       • Activities rendering used products avaiable and physically moving them to some point.
       • Purchasing
       • Transportation
       • Storage
     • Inspection/Separation
       • All operations determining whether a given product is in fact reusable and in which way. Splitting the flow of used products.
       • Disassembly
       • shredding
       • testing
       • Sorting
       • Storage steps
     • Re processing
       • Transformation of a used product to a usable product again  (Recycling, repair, remanufacturing).
       • Cleaning
       • Replacement
       • Re assembly
     • Disposal
       • Products cannot be reused, rejected at the separation level +repair requirements -market potential
       • Transportation
       • Landfilling
       • Incineration steps
     • Re distribution
       • Directing reusable products to a potential market and to moving them to future users
       • Reuse
       • Sales
         • Leasing
         • Service
         • Contracts
       • Transportation
       • Storage
   • Clasification of Recovery Networks
     • Structure
       • Centralisation
         • Number of locations at which similar activities are carried out.
         • Centralised
           • Few locations
         • Decentralised
           • Several locations
       • Number of levels
         • Number of facilities a goods flow visits squentially (vertical integration of network).
       • Links with other networks
         • Degree of integration of a new network with existing.
       • Open vs closed loop
         • Incoming and outgoing flows if a netwirk
         • Closed
           • network sources and sinks coincide so that flows cycle in the network
         • Open
           • One way structure enter in one point and finishes in another.
       • Degree of branch cooperation
         • Parties responsable for setting up the network (single, joint, etc.)
     • Dimensions
       • PRODUCT Characteristics
         • The form of recovery determines the facilities required and hence the related investment costs.
         • Physical
           • Weight
           • Volume
           • Fragility
         • Economic
           • Value
           • Rate of obsolescence
       • MARKET Characteristics
         • Actors-relationships
           • Relative power and economic incentives.
           • Suppliers
           • OEM´s
           • Service providers
           • Independent recoverers
           • Consumers
           • Public Authorities
       • Relevant RESOURCES
         • Recovery facilities
         • Human resources
         • Transportation resources
     • Product recovery network types
       • Bulk recycling networks
       • Assembly product remanufacturing networks
       • Reusable item networks
   • Vehicle Routing Issues
     • Lower time pressure
     • Cost-revenue tradeoffs
     • Vehicle loading

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