There are firms who have now started to invest in reverse logistic operations and are benchmarking such operations. ISO certification is also given to those firms who have adopted the phenomenon of reverse logistics. This can be stated as a measure to control quality in order to satisfy large base of customers. Literature Review According to Tibben-Lembke and Rogers (2002), logistics basically means movement of goods from one point to another at times supported by third party companies. This approach in industrial context means science and art of producing, distributing and obtaining goods in right quantity from right place.
Goods movement has initiated demand towards substantial infrastructure like airports, railroads, sea ports, highways, etc. Reverse logistics on the contrary can be stated as the reverse process of the approach. It is often regarded as recycling mechanism of goods (Tibben-Lembke and Rogers, 2002). As per Daugherty and Myers (2002), supply chain management is all about manufacturing finished goods from raw materials and then delivering it to target group through wide array of distribution channels. Reverse logistics takes into consideration activities responsible for transporting, disposing and retrieving goods.
These products are then moved to manufacturer from customer along with flow of information linked with credit and tracking procedure (Daugherty and Myers, 2002). Dekker and Fleischmann (2004) in their studies stated that product recalls majorly occurs when a product has entered within the supply chain system. There are more elements involved in reverse process due to commercial agreements like taking obsolete stock back versus returning. This kind of agreement is usually observed in business to business commercial returns. In business to consumer model, goods are reversed due to inappropriate product quality or timing (Dekker and Fleischmann, 2004).
According to Mollenkopf and Closs (2005), reverse logistics is incorporated within supply chain because of multiple reasons like commercial returns, warranty returns, manufacturing returns, product recalls, end-of-use returns, service returns and end-of-life returns. Quality control can be regarded as a major component for growth of reverse logistics. It is essential in current scenario to maintain proper quality standards throughout supply chain activities (Mollenkopf and Closs, 2005). As stated by Prahinski and Kocabasoglu (2006), increased competition in business environment makes it necessary for manufacturers to supply quality goods.
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