Reverse Logistics - Case 4, Examine the Situation (Essay Sample)
We return to the hypothetical grocery delivery business described in Case 1. - Attached are the previous papers for Case 1, 2 & 3 to look back on
If you buy a defective computer, then it's a given that you're going to take it back to where you bought it, either to be repaired, replaced, or returned in exchange for a refund. If you buy a net of onions that has some moldy ones in it, then it's a given that you'll simply throw them away. Taking them back to the store isn't worth the trouble.
In the case of MyShoppingCart, the situation is a bit more complex. Your customers are paying a high premium for fast, 24/7 delivery of groceries. If a Silicon Valley matron gets a corked bottle of pinot grigio, or a tin of pate de foie gras with an unwholesome aroma, then she expects your company to come get it, and credit her account.
This is an example of reverse logistics, which your readings describe as “a supply chain opportunity.” But you're having difficulty finding any opportunities in the smelly bags of spoiled groceries that turn up at your warehouse from time to time. This problem is a lemon. Your challenge – to make lemonade!
Carefully examine the situation, and discern any opportunities to profit from the returns, or at least earn enough money to offset the losses. Here are some clues. You bought the products from somebody, right? Maybe they're good for it. Also: information about product quality is valuable, at least in principle. How could you monetize that value? Who would be interested in seeing that information, and what could you gain by providing it to them?
Again, be sure to base your discussion on a close reading of the required sources. Be sure to provide citations and references.source..
By definition, reverse logistics consists of all the operations directly linked to the reuse of materials and products. The process involves the movement of materials from their original destination for the purposes of disposing them off properly or for capturing value. This process runs from planning, controlling and implementing measures that are cost-effective and efficient on all the raw materials to ensure profits or to outdo the losses (Robinson, 2014). Other processes that can be involved include refurbishing and remanufacturing.
A grocery store like MyShoppingCart is prone to many losses. Most importantly, it is notable that the goods or products the store will deal with are highly perishable. Every business as everybody knows is meant to make profits and not losses. This is their key functional goal. Groceries face a lot of risks that are mostly influenced by the supply chain. A few of these risks include; harm to reputation, disasters, both man-made and natural, contagious infection and stale products (Freeman & McAleenan, 2015). When these risks are transferred to the customers, they lead to the loss of market and harm to the business reputation.
Just to give an example; a customer pays for 24/7 premium delivery of groceries at MyShoppingCart. The goods are delivered with respect to the order let's say a tin of pate de foiegras or pinot grigio in a corked bottle. If the customer opens and finds that it has an aroma that is unwholesome, they will contact the store and expect the store to go get the goods back. In addition to that, they will want the store to refund their accounts. The poor quality of the goods could be linked to the supply chain. The supply chain could have supplied poor quality products, or since they are perishable, they had gone bad. Transportation to get back the rejected products is a transportation loss. Refunding the customer is another loss. Worse of worse is the harm to the reputation of the company.
Earlier said, businesses are after making profits and not losses. Losses are inevitable if proper planning and management are not done. First and foremost, the suppliers must have a long history of highly reputable background. One of the management includes that in
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