Reverse Logistics in the Uk Retail Sector
REVERSE LOGISTICS: CHALLENGES AND ISSUES FACED BY THE MAJOR RETAIL PLAYERS IN THE UK.
INTRODUCTION:
“In the sweat of your face you shall eat bread till you return to the ground, for out of it you were taken; For dust you are, And to dust you shall return.” Genesis 3:19.
Effective and efficient management of product returns is an intriguing practical and research question. Growing green concerns and advancement of reverse logistics (RL) concepts and practices make it all the more relevant. Three drivers (economic, regulatory and consumer pressure) drive product returns worldwide. This has also gained momentum because of fierce global competitiveness, heightened customer expectations, pressures on profitability and superior supply chain performance. Concerns about environmental issues, sustainable development and legal regulations have made organizations responsive to Reverse Logistics. Increased competition, growing markets and a large base of product users in developing countries imply that buyers are getting more power in the supply chain even in these countries. Thus, managing product returns in an effective and cost-efficient manner, is of increasing interest in business as well as in research. It leads to profits and at the same time increased customer service levels and higher customer retention.
The figure above shows the basic flow diagram of Reverse Logistic activities. The complexity of operations and the value recovered increase from bottom-left to top-right in the figure.
Though the idea of reverse logistics dates from long ago, the naming is difficult to trace with exactness. Though systematically related with recycling, terms like Reverse Channels or Reverse Flow already emerge in scientific literature of the seventies (Guiltinan and Nwokoye, 1974; Ginter and Starling, 1978). During the eighties, the definition was inspired by the movement of flows against the traditional flows in the supply chain, or as put by Lambert and Stock,
INTRODUCTION:
“In the sweat of your face you shall eat bread till you return to the ground, for out of it you were taken; For dust you are, And to dust you shall return.” Genesis 3:19.
Effective and efficient management of product returns is an intriguing practical and research question. Growing green concerns and advancement of reverse logistics (RL) concepts and practices make it all the more relevant. Three drivers (economic, regulatory and consumer pressure) drive product returns worldwide. This has also gained momentum because of fierce global competitiveness, heightened customer expectations, pressures on profitability and superior supply chain performance. Concerns about environmental issues, sustainable development and legal regulations have made organizations responsive to Reverse Logistics. Increased competition, growing markets and a large base of product users in developing countries imply that buyers are getting more power in the supply chain even in these countries. Thus, managing product returns in an effective and cost-efficient manner, is of increasing interest in business as well as in research. It leads to profits and at the same time increased customer service levels and higher customer retention.
The figure above shows the basic flow diagram of Reverse Logistic activities. The complexity of operations and the value recovered increase from bottom-left to top-right in the figure.
Though the idea of reverse logistics dates from long ago, the naming is difficult to trace with exactness. Though systematically related with recycling, terms like Reverse Channels or Reverse Flow already emerge in scientific literature of the seventies (Guiltinan and Nwokoye, 1974; Ginter and Starling, 1978). During the eighties, the definition was inspired by the movement of flows against the traditional flows in the supply chain, or as put by Lambert and Stock,
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