Explain how Johnson can optimize its reverse logistics channel. Is there any opportunity to provide competitive advantage through reverse logistics for Johnson Automotive, and what would it be?

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1.) Define reverse logistics and explain it.
Kindly think in the following terms: The systems and methods used to move previously-shipped goods from a customer back to a manufacturer or distribution center due to repair, service, credit or order error issues. Johnson Automotive should understand that reverse logistics covers activities related to returned product, returned pallets and containers, and returned materials for disposal or recycling. Please think of the following: A supply chain that is dedicated to the reverse flow of products and materials for returns, repair, remanufacture, and/or recycling The logistics associated with the management of waste or used products. You should think of the following: Reverse Logistics has become more important recently as governments have introduced legislation to reduce the dumping of waste so that companies have set up to re-use, re-cycle, repair, refurbish and/or re-manufacture what would previously have been dumped. You need to understand this: reverse logistics refers to a specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit. Please reflect on the following: Reverse logistics, the handling and disposition of returned goods. At the simplest level, the disposition of returned goods consists of junking them or giving them away. But with more sophisticated systems and processes, returned goods can be put back into inventory, sold at liquidation centers, or broken down to component parts--steps that can cut costs, increase profits, and improve customer service.

Kindly reflect on this: Once the consumer has used the product, the manufacturer still has a couple of things to do. For example, what happens to that car battery? What happens to those empty drums paint and related chemicals at the factory?
Please reflect on the following: Reversing the flow of material (back into the supply chain) post-consumption is the idea behind reverse logistics. This need not happen at the consumer interface alone, but needs to take place during the manufacturing and procurement cycles as well.

You should think of the following: The environmental lobbies are gaining in strength, and consequently, the consumer does not hesitate to let you know, that he wants to ensure that any waste is disposed of properly. To meet such demands, managers are using reverse logistics to make their manufacturing cycle more efficient, friendly and profitable.

2.) Highlight key elements of return management or reverse logistics channel for the automotive industry - how are they different than other industries? Identify the unique aspects of this industry.

Taken from the website: www.inboundlogistics.com.

Reverse logistics in the automotive sector has its own unique challenges given the over-sized nature of the freight and the cost of moving parts back upstream in the supply chain. For Hyundai Motor America, headquartered in Fountain Valley, Calif., one of its greatest pains has been properly managing returns from dealers.

"In general, reverse logistics in the automobile industry applies to dealer returns," says George Kurth, director, supply chain and logistics, Hyundai Motor America. "Every automotive company has a policy that allows dealers to return products they no longer need. Typically, they are allowed to return a certain percentage of orders."

Hyundai cars and sport utility vehicles are distributed throughout the United States and are sold and serviced by more than 640 Hyundai dealerships nationwide. In the past, dealers ...