Marketing Coursework Module 4 - Case Reverse Logistics

Case Reverse Logistics
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Case Reverse Logistics
The business environment is in a dynamic change where all organizations are trying to identify the gaps that they can maximize so as to obtain highest profit returns. Reverse logistics is one of the gaps that is receiving the highest priority in companies that are striving to reduce costs, improve customer experience and add efficiencies to its operations. Through reverse logistics, organizations are "uncovering the hidden value of returned products" by the customers (Sensing, 2011). However, the reverse logistics has become a complex process especially in the high-tech sector where products are customized to meet customer preferences. Although, this process if well managed can be beneficial to organizations, it has some challenges such as determining whether the product was really in the store, whether to repair, restock, repackage, recycle or dispose in any other way possible or whether the product belongs in the process. Despite these challenges, effective management of the reverse supply chain process has become crucial in the overall performance of organizations.
Reverse logistics is a new concept in business operations thus most firms dedicate their resources in forward logistics and overlook on reverse operations and its value (Bernon, Rossi, & Cullen, 2010). Forward operations and reverse logistics are distinct. The reverse logistics are more complex due to the various measures such as the use of specialized equipment, repackaging, vague pricing and undetermined product life cycle Vaidyanathan & Yadong, 2007; Pokharel & Mutha, 2009).
The increasing rate of reverse logistics is due to dynamic changes in customer behavior which has resulted in products with shorter life cycles. Besides the return of defective products, return policies are shaping competition in the market including the online markets which have indicated that reverse logistics is in demand (Vlachos, 2014).
In the case of MyShoppingCart, the case is more complex since it mostly deals with perishable and agricultural products whose life cycle is short and require fast and efficient logistics. Slight delay or deviation while in stock may create a food safety concern and pose a threat to public health. The case of an unwholesome aroma in a corked bottle of pinot grigio is an indication that any deviation from the promised quality may generate distrust amo...