Reverse Logistics Reasons

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Reverse Logistics Reasons and Drivers. 2.3.1 Reverse Logistics Reasons There are several reasons for Reverse Logistics. The researcher has attempted to review the various reasons given by different authors and organisations. Material can move in the reverse direction for several reasons. Products are retuned as they are not functioning properly or stopped to perform. They could move in reverse direction from any of their channel positions in the supply chain. The explanation of these varied reasons is given in this section of the chapter of Literature Review. De Brito and Dekker (2002)30 have broadly given three classes for the returned materials. A. Manufacturing Returns. B. Distribution Returns. C. Customer or User Returns. The figure…show more content…
They could be product recalls, commercial returns, returns for stock adjustments or reusable items returns. The recall process is initiated either by the producer or supplier for safety or health reasons. The commercial returns happen during or after sales process due to damaged / wrong shipments or due to end of shelf life or unsold inventory lying with channel partners. Stock adjustments are movements of goods between stores and channel members. The reusable returns are those of reusable pallets and containers serving the logistics processes. The main types under Distribution returns given…show more content…
• Returns within Warranty period . • Service returns (repairs / spare-parts...). • End-of-use product returns. • End-of-life product returns. The above three types of product returns are also elaborated by Guo-Jun Ji (2008)31 where he states that the first type called as Manufacturing returns happen between the manufacturer and its supplier. The second type termed as Distribution returns take place between the channel partners and the manufacturer. The third type of Returns is called as Customer returns. These take place amongst the customer and the channel of distributor or between the customer and the producer. There are various reasons for a material to enter the reverse logistics flow. Rogers and Tibben- Lemke (1998)11 have summarised them as shown in Table 2.2. The most common reasons are captured in the table. The two sources are the Customer and the Retailer. • Customer can return the product for different reasons. The reason could be that the product is not meeting his requirements, or his insufficient knowledge regarding

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