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In today’s market, the need to achieve sustainability and meet consumer service demands have prompted companies to start focusing on reverse logistics. Reverse logistics can lead to more efficient relationships with supply chain partners, improve profits through reduced costs, and improve other efficiencies while achieving higher recovery rates for returns. The characteristics of reverse logistics are different from their manufacturing counterpart. Reverse logistics is defined as 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 or creating value or proper disposal (1).
Reverse logistics includes retrieving, handling, storage, transportation, inspection, repair, repackaging, refunds, and customer service. The first and most important step is the retrieval of the product. Distributors and customers must have precise communication to expedite the product back to the facility. The product then gets inspected and organized. When the product is examined it will be determined what products can be saved, remanufactured, resold or disposed. The challenge here is
to model the system so that it can facilitate both manufacturing and remanufacturing for the supply chain network. In other words we need to realistically design a process that will produce value flow in both directions.
The goal of this project is to develop a supply chain process that uses reverse logistics, while complimenting forward manufacturing production, for the purpose of achieving economic success. In order to develop this process I will be looking at several ways to implement total quality management (TQM) in a manufacturing setting. By using metrics monitoring customer service, operations, returns, restocking, and recycling. With these metrics, I will look to predict outcomes from the result of TQM and develop a strategic plan to implement reverse logistics.
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