Please enable JavaScript.
Coggle requires JavaScript to display documents.
T11 - Reverse, Green & Sustainable SCM (Green Logistics (Every stage…
T11 - Reverse, Green & Sustainable SCM
Reverse logistics
Reverse logistics is the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal
Recapturing value refers to asset recovery, reselling (in second-hand market), remanufacturing and refurbishing activities
Proper disposal refers to recycling programs, hazardous material programs, and obsolete equipment disposition.
Other activities may include redesigning products and processes to reduce waste (can be regarded as “green logistics”), reusing containers and recycling packaging materials.
returned merchandise due to damage, seasonal inventory, restock, salvage, recalls, and excess inventory.
-
-
Neglected by firms
-
costs are less clearly visible and therefore not looked upon
as a priority; often organizations avoid difficult problems
difficult to forecast for reverse flow of the product and to know exactly what and how much merchandise will be returned by the customer
Do not have the expertise, manpower or infrastructure for processing returns and expanding to start up a new operating system of returns
-
Green Logistics
• Green logistics is a form of logistics which is designed and arranged to be environmentally and often socially friendly in addition to economically functional.
making products environmentally friendly may also lead
to economic gains Eg. thinner packaging cheaper
making a product environmentally friendly may cost more, causing it to come into conflict with traditional logistics.
-
Consumers are sometimes willing to pay more for green products, which makes green logistics appealing from a business standpoint as well as an ethical one
Social issues may also need to be considered, because consumers are sometimes concerned about the social impact Eg. Worker conditions
Companies may actively promote worker and community welfare to emphasize that they believe in community responsibility as well as environmental responsibility, so that their products are more appealing to consumers
SC Sustainability
modal shift is to change transportation by trucks and
airplanes to that by trains and vessels with less environmental impact
-
-
-
-
-
-
-
Key Challenges
Sustainability vs Cost
• Running a green supply chain is often costly
• Intangible and hidden costs involved
• Requires reengineering of existing process
• A total change of mindset
-
-