Supply Chain Assignment - Reverse Logistics Assignment

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of this new stream along with policies and guidelines that will need to be implemented. Moreover, the company will need to invest in time and resources to understand the regulations that govern around reverse logistics and disposition process. Potentially, scrap/refurbished products could be resold internationally and therefore international regulations will need to be considered to mitigate any risks that may arise.

Another challenge the company would encounter is the selection of salvaged materials is not predictable. With various components of costs (such as: customer service, inbound shipping and receiving, processing, disposing, and warehousing), the company will need to ensure there is sufficient inflow of materials involved in the process to bring in revenue. What is difficult is the arrival of products may be very random and the price at which the product will be sold is also unknown, this make the hypothesis for forecasting difficult.

To ensure this approach is executed successfully, I recommend the following:

1) Company to understand fully the rules and regulations involved with the government such as taxes and tariffs. Not taking the time to understand the legal system could result in fines and/or costly delays.

2) The company should understand what kinds of scraps would be commonly accepted and what actions will need to occur before it is resold in secondary channels.

3) Cost is another important factor. Labour, transport, and disposal costs, for example, is a great start to understand the cost breakdown of a product associated with each activity in the reverse logistic flow process. The finance department will need to work with sales and marketing teams to forecast the volumes/revenues generated with the costs associated.

4) Ensure the company has the information/operations systems that support the reverse logistic strategies. To manage the processes effectively, information needs to be properly captured from the start – arrival at warehouse, scan into inventory, process the item, and create the invoice.

Also, the system should produce key performance indicators that will allow the firm to strive for a continuous improvement culture.

5) Develop and map out the reverse logistics processes to understand the components and interrelationships in each step. Not only will this provide clear guidance for internal staff of each department’s roles and responsibilities, it allows clients and suppliers to understand where they fit in the process and the timing.