Reverse Logistics: an Underused but Highly Effective Tool

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Jim Gerard
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Re: Simple but effective
Jim Gerard   6/7/2012 4:12:06 PM

Thank you for your question. Reverse logistics is so much more than the name suggests. It can be nearly any activity that occurs in the end market – or after the point-of-sale. In the automotive market, for example, original equipment manufacturers (OEMs) deal with warranty issues, such as parts recalls or pulling back the precious metals in catalytic converters. Ensuring the product is returned to the correct location using the most efficient transportation mode is important – whether it's a radio, transmission or any warranty part. Further to the retail side of the industry, eBay states that a part or accessory is sold online every one second and an engine or component sells every 25 seconds. With the ongoing growth of online sales, returns is one component of reverse logistics that continues to play an increasingly important role in customer satisfaction and repeat sales.


Bolaji Ojo
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Simple but effective
Bolaji Ojo   6/4/2012 4:29:58 PM

Jim, You made the case convincingly for companies to adopt reverse logistics. However, not much of this goes in several end markets. Automotives come to mind. Why is this the case?

Barbara Jorgensen
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Reverse logistics
Barbara Jorgensen   6/4/2012 3:01:09 PM

The more I read about this, the more convinced I am that revrese logistics plays a growing role in the electronics supply chain. One aspect that OEMs can improve on is ease of doing business. Our mobile service carrier does not take our old cells phones when we upgrade. Unless we are able to make a certain town-wide collection date, we just keep the things until...well, we still have them. Even donating them becomes problematic. If I were to get a prepaid box to send my old phones back to the manufacturer along with my new phone, I'd send them back in a minute.

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