Explore BrainMass

Forward and Reverse Supply Chain Management

Explain in detail how and why a company should manage both forward and reverse supply chain management. Include what they should focus on to improve their customer service levels.

Give an example of a global company of interest and recommend an application of forward and reverse supply to their supply chain.

If there are sources please provide.

Solution Preview

As we all know, an efficient forward supply chain is important to companies to ensure optimization of supply chain activities or in other words, reduction in unnecessary costs, wastages and inefficiencies associated with supply chain operations. Companies manage their supply chain operations to ensure operating efficiency is maximized via reduction in inventories, procurement costs, delays in movement of goods, etc. In recent years, reverse supply chain management has gained increased level of attention due to various reasons.

By integrating the forward and reverse supply chains, a "closed loop" is developed which brings the optimal efficiencies and visibility to the distribution and manufacturing processes-resulting in enhanced customer service, reduced inventories throughout the chain, accelerated cash flows, reclaimed value that is traditionally lost, and significant bottom line impact.

In many industries (such as high tech and aerospace), better management of the reverse supply chain translates into higher customer service and, consequently, higher customer satisfaction and 3) Industries and the enterprises within them are realizing that management of the reverse supply chain is a revenue opportunity. For example, GE Aircraft engines makes more in servicing its aircraft engines than it does when initially selling them. Companies are able to reduce their costs, increase revenue and increase customer service.

Reference: http://www.3isite.com/articles/reversediscussion.htm

There is a growing recognition among companies that unproductive assets resulting from returned merchandize can be utilized for recapturing value and there are several instances where corporations have have reported significant reductions in inventories, improvement in cash flow, reduced labor and improved customer ...

Solution Summary

This solution explains how and why a company should manage both forward and reverse supply chain management in 1049 words.