2.What are the key elements of reverse logistics in the automotive industry? 3.How can Johnson optimize its reverse logistics channel?
What Is Reverse Logistics?
The Reverse Logistics Association (2008) defines reverse logistics as “all activity associated with a product/service after the point of sale, the ultimate goal to optimize or make more efficient aftermarket activity, thus saving money and environmental resources”. Because all of these processes take place post-sale, this portion of the company’s activities could simply be viewed as a cost center. This could not be further from the truth. The objective of any intelligent business manager should be to optimize all activities and ensure that the maximum value is achieved for every Dollar that is spent by the company.
Some of the activities associated with reverse logistics are remanufacturing, recycling, reconditioning, warranty management, call-center management, and transportation. The main goal of reverse logistics is to facilitate these activities in a manner that helps the company to meet its corporate objectives. That is why the design of the reverse supply chain processes is so important. Every company needs specific processes that are aimed at increasing value for the company and its customers...