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Jan 9, 2024
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Logistics and Transportation in Reverse Logistics
Chrystal Domingue
American Public University Systems
RLMT500 – Reverse Logistics Management
Dr. Emmet Fritch
August 14
th,
2022
REVERSE LOGISTICS 2
Logistics and Transportation in Reverse Logistics
While forward logistics is the process of getting products from the point of origin to the end user and all steps in between, reverse logistics is the opposite. Reverse logistics is defined as the process of planning and controlling the flow of returned goods, inventories, and raw materials as well as any related documentation from the point of consumption back to the point of origin (Zhang, et al., 2013). The four basic outcomes for products flowing through the reverse logistics system are; repair, remanufacturing, recycling, or disposal. The US’s estimated cost of returned goods is $35 billion per year (Dowlatshahi, 2010). Through basic reverse logistics activities such as loading or unloading, warehousing, testing, disassembling, or treatment of returned products, the overall goals are to provide cost and cycle time minimization, customer satisfaction, flexibility, and efficiency throughout the entire process (Li, et al., 2012). The purpose of this paper is to explore the different functions of transportation and logistics as well as the role a competent human resource department plays in contributing to the success of a reverse logistics system.
Transportation Functions
Transportation is one of the most critical components in both forward and reverse logistics flows (Zhang, et al., 2013). Transportation methods can include ground, water, and air. When it comes to reverse logistics flows, there are two important roles transportation plays; the proper transit of returned goods from the point of consumption to the processing centers, and the shipping and handling of repurposed or remanufactured goods to new customers. The criticality of efficient and effective transportation is often recognized through the negative consequences of
inefficient and inadequate systems. When dealing with returned goods, the remaining value may be reduced due to delays in transportation (Dowlatshahi, 2021). Transporting goods is a
REVERSE LOGISTICS 3
significant cost to an organization, and costs involved with the transportation part of reverse logistics are directly related to the state of the economy as gas and raw material prices fluctuate. Costs related to fuel, packaging, and fees can change driving up the costs for a company. This function is an opportunity for an organization to manage costs. Another option available for managing transportation costs is for a firm to outsource transportation through third-party transportation companies.
Logistics Functions
Logistical functions of reverse logistics are responsible for the life of the product from the point of consumption through repair, repurposing, remanufacturing, recycling, or disposal. Logistics includes many functions of the supply chain including; warehousing, tracking, testing, disassembling, remanufacturing, repurposing, recycling, inventory, packaging of returned products and materials, and transportation. Running and maintaining a successful and efficient logistics department requires many different employees trained and knowledgeable in many different aspects. Unlike transportation whose main function is to get products from point A to point B, logistics functions encompass managing the products or materials throughout the entire process whether they are going forward or backward through the supply chain. Logistics includes
activities that support the production process as well as activities that relate to the distribution process in normal forward logistics (Remes & Remes, 2013). In reverse logistics, the logistics team has many of the same activities, just for a different reason. Inventory is still managed and tracked, items can still be assembled and disassembled in both processes. Human Resources
Human resources play a vital role in the success of a supply chain, as employees are a critical part of meeting client expectations through service, creation, provisions, and the
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REVERSE LOGISTICS 4
consumption process (Palsaitis et al., 2017). In order to remain successful, an organization needs the right people, with the right skills and knowledge to run a successful operation. A large part of
analyzing employees’ knowledge and capabilities is through measuring competence in an area. Competence is the capability to perform a certain activity on the basis of the entirety of acquired knowledge, skills, and value (Palsaitis, et al., 2017). One of the most important contributions human resources makes to reverse logistics is training and retraining employees. Without proper training, the supply chain as a whole would suffer. Every position in the process of reverse logistics requires skills and knowledge to do their job successfully and efficiently. Human resources provide the needed training to do this as well as future training when needed. Differences
Mistaking transportation and logistics as the same function happens frequently, but there are differences in the two. Transportation is the actual process of transporting goods, materials, and products from one location to another, as well as to the final point of consumption and back when needed in reverse logistics. Logistics functions is everything that happens when it is not in active transport. Logistics plans, purchases, receives, assembles and disassembles, and prepares the products and materials for transportation. Job duties also differ from transportation functions to logistics functions. Those in logistics positions vary from purchasing, to inventory control, to document coordination. Conclusion
To summarize, the differences in transportation and logistics functions in reverse logistics
include job duties, required training, skills, and knowledge. While the goal of both transportation
and logistics dealing with returns is to get the most value out of the product will providing satisfactory customer service as well. Each department has a role to play in extending and
REVERSE LOGISTICS 5
preserving the life of the product, and handling the materials as they flow through the supply chain to be repaired, repurposed, remanufactured, recycled, or disposed of. Transportation is the actual active movement of products and materials from one location to another, and logistics is everything in between.
REVERSE LOGISTICS 6
References
Dowlatshahi. (2010). The role of transportation in the design and implementation of reverse logistics systems.
International Journal of Production Research
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(14), 4199–4215. https://doi.org/10.1080/00207540902998356
Li, Wang, N., He, Z., Che, A., & Ma, Y. (2012). Design of a Multiobjective Reverse Logistics Network Considering the Cost and Service Level.
Mathematical Problems in Engineering
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, 1–21. https://doi.org/10.1155/2012/928620
Ramūnas Palšaitis, Kristina Čižiūnienė, & Kristina Vaičiūtė. (2017). Improvement of Warehouse Operations Management by Considering Competencies of Human Resources.
TRANSBALTICA. Proceedings of the International Scientific Conference
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, 604–613. https://doi.org/10.1016/j.proeng.2017.04.420
Remes, C., & Remes, E. (2013). INTEGRATING THE LOGISTIC FUNCTION WITHIN ENTERPRISE'S FUNCTIONS.
Studia Universitatis "Vasile Goldis" Arad.Seria Stiinte Economice.,
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enterprises/docview/1664920650/se-2
Zhang, Z., Van Hui, Y., & Chen, H. (2013). A forward and reverse logistics shipment planning model.
The Journal of the Operational Research Society,
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(10), 1485-1502. doi:https://doi-org.ezproxy2.apus.edu/10.1057/jors.2012.136
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