Questions and Answers
What is the primary focus of green logistics?
Ensuring reuse and recycling of materials
Which industry faces high return rates due to setup difficulties according to the text?
Computer industry
What is the main reason for a warranty claim according to the text?
Faulty product or defectiveness
Why do customers sometimes abuse money-back guarantees according to the text?
Signup and view all the answers
What does effective order processing help avoid during seasonal events?
Signup and view all the answers
What is the modern view of reverse logistics based on the text?
Signup and view all the answers
What are the three main drivers that have led Reverse Logistics (RL) to become part of many senior managers’ strategic agendas?
Signup and view all the answers
What are the four Green Supply Chain Management (GSCM) practices mentioned?
Signup and view all the answers
What type of economic benefits may Reverse Logistics (RL) programs bring in terms of indirect gains?
Signup and view all the answers
Why do retailers sometimes abuse return policies according to the text?
Signup and view all the answers
What is the primary reason for serious quality flaws leading to manufacturer recall programs?
Signup and view all the answers
Which factor refers to the responsibility of businesses to contribute positively to society beyond maximizing profits?
Signup and view all the answers
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Study Notes
Return Logistics and Green Logistics
- Return logistics (RL) is the process of managing goods, packaging, and transport equipment from customers back to the origin for value recapture or disposal.
Reverse Logistics (RL)
- RL is often used interchangeably with returns management.
- Traditional definition: the reverse process of logistics, managing material resources obtained from customers, moving products from consumption point back to origin for value recapture or disposal.
- Modern view: avoiding returns, reducing materials in forward supply chain, ensuring reuse and recycling of materials.
Green Logistics
- Linked with sustainability strategy.
- Primarily motivated by environmental considerations.
- Includes waste-reduced packaging, low CO2 and noise emissions, and eco-friendly transport choices.
Reasons for Returning Products
- Customer is not satisfied.
- Installation or usage problem.
- Warranty claim.
- Faulty order processing.
- Retail overstock.
- Manufacture recall program.
Warranty Claims
- A request made by a customer to a manufacturer or seller for repairs or replacements for a product that is defective or not functioning.
- Money-back guarantees are common in retail and online sales.
Challenges in Return Logistics
- Risk of abuse: customers ordering products to try and return them without real intent to keep.
- Installation and usage problems can lead customers to perceive products as defective.
- Computer industry faces high return rates due to setup difficulties.
- Faulty order processing can lead to shipping problems, like late delivery or wrong quantities.
Drivers of Reverse Logistics
- Legislation: laws and regulations set by governments.
- Economics: the study of how societies allocate limited resources to meet unlimited wants and needs.
- Corporate citizenship: the responsibility of businesses to contribute positively to society, beyond maximizing profits.
Green Supply Chain Management (GSCM) Practices
- Environmental certification, or product specific eco-labels.
- Pollution prevention.
- Life cycle assessment: to quantify the environmental burden and impact throughout a product's life.
- Design for the environment: also termed green product design.
Economic Benefits of Reverse Logistics
- Direct gains: cost reduction, increased revenues, and additional income from re-manufactured products.
- Indirect gains: enhanced brand image, built customer loyalty, strengthened relationships with customers and suppliers.
