RLMT500 Week 6 Discussion
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American Public University *
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500
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Industrial Engineering
Date
Jan 9, 2024
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docx
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Uploaded by BarristerTapirPerson186
Good evening fellow classmates and professor,
Forward and reverse logistics are equally important functions of supply chain management. Forward logistics is defined as the forward movement of goods as they transition from raw materials to finished goods, eventually being received from the end-consumer (Billings, 2019). This involves inbound and outbound activities between manufacturing, warehousing, distribution, and transportation. Alternatively, the Association for Supply Chain Management (ASCM, 2023) describes reverse logistics as the process of returning products from
the end-consumer back through the supply chain to the retailer or manufacture. The reasons for utilizing reverse logistics can often be from product recalls, defects, items missing, or end-of-life
recycling. However, forwards and reverse logistics have certain similarities and key differences. Similarities
Initially, both forward and reverse logistics involve the movement of goods and services from one location to another in supply chain operations. In addition, both processes require the use of transportation, warehousing, and inventory management systems (Zhang et al., 2012). They also require effective coordination amongst supply chain partners and logistics service providers. Furthermore, in the article “A Forward and Reverse Logistics Shipment Planning Model,” Zhang et al. (2012) mentions that both forward and revers logistics consolidate and reduce costs, improve customer satisfaction, and ensure timely product deliveries.
Differences
One of the main differences between forward and reverse logistics is that in forwards logistics, products and services move downstream outside the supply chain to end consumers and
reverse logistics moves these aspects back into the supply chain to a designated facility.
Additionally, reverse logistics can involve additional processes or procedures consisting of product inspections, evaluations, or refurbishment of returned products to be reintroduced in the market (Zhang et al., 2012). Moreover, the demand for reverse logistics is harder to forecast due to the complexities of predicting product returns from consumers where forward logistics is simpler to forecast product demands. Therefore, reverse logistics may require additional resources to accommodate customer services for determining how supply chains should manage returns or exchanges. Reverse Logistics Differences Between Transportation and Logistics
Transportation and logistics have different processing activities that occur in reverse
logistics. According to Zhang et al. (2012), transportation involves the physical movement
activities of goods by air, land, and sea transport where logistics activities involve receiving,
unpacking, packing, storing, repairing, or disassembling at reverse logistics centers. The
difference basically is between the modes of travel used for transportation and the supply chain
functions used for logistics. Therefore, the supply chain functions of logistics focuses on
determining how returns are processed and may require specialize equipment for refurbishing,
recycling, or disposing returned products. However, returns may necessitate special handling or
may need relocating to a different area, requiring a certain mode of transport to ensure quality
control during transit.
Overall, while forward and reverse logistics share certain similarities, they also have distinct characteristics that may need specialized strategies or resources to facilitate product returns. Both types of logistics move returns back to the supply chain. However, the key differences are the types of movements used in various transportation modes and supply chain functions. Logistics is based on how returns are processed, and transportation is based on how
returns will go back to processing facilities. Regardless, both are processing activities that can provide cost savings and improve reverse logistics efficiency for supply chain operations. -Jake
References
ASCM. (2023). What is reverse logistics?
https://www.ascm.org/lp/reverse-logistics/ Billings, C. (2019, October 9). Forward and Reverse Logistics – Complete Product Lifecycle
. Ingram Micro Services. https://www.ingrammicroservices.com/blog/forward-and-reverse-
logistics-complete-product-lifecycle/#:~:text=Forward%20logistics%20are%20used
%20to,mile%20delivery%20to%20a%20consumer. Zhang, Z., Van Hui, Y., & Chen, H. (2012). A forward and reverse logistics shipment planning model. Journal of the Operational Research Society
, 64
(10), 1485–1502. https://doi.org/10.1057/jors.2012.136
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