REVERSELOGISTICS
DefinitionsLogistics(Forward)“Processofplanning,implementingandcontrolling（1）theefficient,cost-effectiveflowofrawmaterials,in-processinventory,finishedgoodsandrelatedinformation（2）fromthepointoforigintothepointofconsumption（3）forthepurposeofconformingtocustomerrequirements（4）” -CouncilofLogistics,1988-ReverseLogistics“Processofplanning,implementingandcontrollingtheefficient,cost-effectiveflowofrawmaterials,in-processinventory,finishedgoodsandrelatedinformationfromthepointofconsumptiontothepointoforiginforthepurposeofrecapturingvalueorproperdisposal” -RogersandTibben-Lembke-
ReverseLogisticsActivitiesHandlingofreturnedmerchandiseDamageSeasonalinventoryResellviaoutletSalvageofoutdatedproductsStock–balancingreturnsRecyclingandreuseMaterialreuseRemanufacturing/refurbishingHazardousmaterialsdisposition
Source:/img/edition04_ups.jpgTheReverseLogisticsProcess
SizeofReverseLogistics“ReverselogisticscostsintheUnitedStatesareestimatedtobeapproximately4%oftotalU.S.logisticscosts”-ROGERS,D.,ReverseLogisticsChallenges,2002- -Roughly$47billionsin2006“Itisestimatedthatreverselogisticscostsaccountforalmost1%ofthetotalUnitedStatesgrossdomesticproduct”MOORE,R.,Reverselogistics:Theleastuseddifferentiator,2006. -Roughly$132billionsin2006“TheCenterforLogisticsManagementattheUniversityofNevadaconservativelyestimatesthat6%ofallgoodsmaybereturned,butconcedesthatthetruenumbermaybecloserto8%”MOORE,R.,Reverselogistics:Theleastuseddifferentiator,2006.
ReturnPercentagesSource:RogersandTibben-Lembke,GoingBackwards:ReverseLogisticsTrendsandPractices,1998
PublishingIndustryHighestrateofunsoldcopies(28%onaverage)Growthoflargechainstores:MoresquarefootagerequiresmorebooksTosecureaprominentdisplayinsuperstores,publishers