Reverse Logistics

Topics: Supply chain management, Supply chain, Logistics Pages: 5 (1609 words) Published: December 27, 2013
Introduction
Reverse logistics is described as the function of handling returned products due to damage, expiry, end of life & recalls etc. In organizations there are a number of activities that describes Reverse Logistics management but are not recognized and controlled (Fassoula, 2007). Reverse Logistics (RL) can be considered as a way to understand the process of movement of products from downstream to the point of production for the purpose of recapturing value and proper disposal (Khan & Sabzwari, 2009).The philosophy of Reverse Logistics Management has been creating buzz for the past decade; still organizations don’t really follow a strategy to overcome difficulties in Reverse Logistics Management. According to Stock et.al (2007), annually in US the value of returns for commercial products is $100 billion, which are returned during a period of 90 days of sale. This describes the total loss incurred by reverse logistics is high in US; this also stresses on the need of efficient handling of RL; as a measure of cost saving. Efficient handling is required in Pharmaceutical industry as there are chances of infiltrations and counterfeit products, which can lead to security and legal issues. According to Khan and Sabzwari (2009), proper management of Reverse logistics can add value for securing and preventing penetration of counterfeit pharmaceutical products in other markets. If RL is handled efficiently by a firm or by its partners it can become a revenue generation activity rather than being a cost incurring activity. According to (Kabir, 2013), Today RL is seen as a distinctive capability and potential revenue generation activity. Our research illustrates the use of collaboration and integration between Supply Chain Partners so as to save cost on Reverse logistics. The respondent for the research is supply chain managers, logistics managers. Pharmaceutical industry has been chosen for the research purpose due to matured learning graph for handling Reverse Logistics and due to security constraint regarding end of life products. 1.1.4 Statement of the Problem

Role of Collaboration and Integration of Supply Chain Partners; an effective handling of Reverse Logistics. 1.1.5 Research Objectives
Reverse Logistics as an avenue of pain for managers but if effectively handled can lead to opportunities for cost saving. Our research objective is to find ways of collaborating with supply chain partners (distributors) for better handling of reverse logistics. 1.1.6 Research Question

How can we efficiently handle reverse logistics by integrating and collaborating with Supply Chain Partners? 1.2 Literature Review
Khan and Sabswari (2009), investigates ‘Reverse Logistics in Pakistan’s Pharmaceutical Sector’. Region of research is Pakistan. Methodology used in this paper is Quantitative. This paper emphasized on how the improper management of medicines effects in losing their value while lying in sales centers, medicines retrieved from the market often has low residual life. There are some cases where return is due to damaged packing full here we can recover market value of inventory. Also, donating of unexpired medicines to charitable hospitals can add to the corporate image. However, in order to ensure the security of supply chain and preventing from infiltration of counterfeit medicines proper management of RL is required. Applying of better inventory management through Radio frequency identification (RFID) and other information technology applications will improve RL as well as overall supply chain.

Kabeer (2013) investigates Acting of Reverse logistics in Pharmaceutical industry. Region of research is Bangladesh. Methodology used in this paper is Quantitative. This paper focuses on reverse logistics and the issues that are being faced by pharmaceutical industries. A new immerging trend appearing in supply chain is that Reverse logistics is now seen as a source of potential revenue by which industries are competing....
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