Reverse Logistics Case Study in Chain Management
We return to the hypothetical grocery delivery business described in Case 1.
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.
Reverse Logistics Case Study in Chain ManagementNameInstitutional AffiliationDate
Reverse Logistics Case Study in Chain Management
In the retail reverse logistics, high volumes of goods run from January, February and in the year of March. However, it is during this period when the good, the bad and the good, the bad, the damaged, the unwanted, and the spoilt goods find their way into the retail stores. When the customers receive the goods that are not of the standard that they expect, then they will return the goods to the warehouse and ask for compensation or a return of the funds that they spent in purchasing the commodity or service. The retail reverse logistics department is the one that is tasked with the responsibility of ensuring that they maximize on the returns that they get from the goods that they have delivered CITATION Mal04 \l 1033 (Malone, 2004).
In the above case study, as a reverse logistics officer, I would employ various tactics to make sure that we minimize the losses due to the return of goods to our retail store. As a reverse logistics officer, I understand the fact that the return of the goods to our grocery retail business will have an impact on the profits of the business since the commodities have the real cost that is tied to them. The profitability of our grocery retail business will be greatly affected. I will make sure that I handle the situation in a positive way so that we cannot lose the orders for my customer. The customer may be having bigger orders in the future for our grocery products, and therefore, it would not be good for me as a logistics officer to make sure that I meet the needs of the customer.
As a way of doing away with the losses that are associated with the returned goods to our grocery store, I would come up with various measures. In the first case, I will begin to ask myself, where did I get the goods from? All the grocery products in our store are delivered to us from retail stores. I will evaluate whether the defect that is occurring on the good arose from the handling at our store or the defect was present when the good was delivered to the store. If I realize that the defect that is the product, ha...
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