Define reverse logistics and explain it. Highlight key elements of return management or reverse logistics channel for the automotive industry - how are they different than other industries?
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Review the Scenario. One of Advante's primary clients, Johnson Automotive (an automotive holding company) provides key parts to one of the big three manufacturers; they are seeking methods to improve and optimize its return parts channels. They provide electronics, batteries, and paint products to their clients. Assume Johnson currently uses outdated methods of supply chain management (limited technology and processes). Using the Cybrary and other resources, do the following:
1. Define reverse logistics and explain it.
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.
3. Explain any issues associated with reverse logistics for each of the individual types of components provided by Johnson Automotive (electronics, batteries, and paint products).
4. 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.
Reverse logistics includes the logistics systems and methods used to move previously-shipped goods (e.g. batteries and electronics parts after the sale and delivery) from the client to a manufacturer or distribution center due to repair, service, credit or order error issues. Reverse logistics starts with the point of consumption and ends at the point of origin for the purpose of recapturing value or proper disposal. Briefly it is associated with the management of waste or used products. Today, reverse logistics has become more important since governments have introduced legislations to reduce the dumping of waste so that firms have set up to re-use, re-cycle, repair, refurbish and/or re-manufacture what would previously have been dumped. Most of the standard MRP II logic applies to reverse logistics although there is more emphasis on quality and variability issues.
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.
Reverse logistics is very important in the automotive industry. Firms allow dealers to return parts they cannot use. They sell them to another dealer or put them back in stock and ...
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