Best practices in the expanded world of reverse logistics

Abstract

Reverse logistics, of reusable assets, maintenance, repair and overhaul (MRO) or other returns, has sometimes been treated as a tactical afterthought, but not any more. Reaching reverse logistics’ impactful contribution potential is not just a dream or ideal. There is a growing trend of interest in the field of reverse logistics as its world expands beyond these tactical afterthoughts into the areas of sustainability, circular economies, collaboration and strategy. This dream will be worthwhile and influential. It is critically important that the reverse flow of products and materials (for the purpose of returns, repair, remanufacture, reuse, raw materials or recycling) be an integral part of supply chain design. Inefficiencies, capacities constraints, excess spend and shrink are just some of the challenges that can quickly arise with inadequate attention and lack of design involvement. Reverse logistics needs to be defined, measured and managed like all other core processes. But how do we best improve, configure and uplift these workflows, interactions and hardworking, forgotten professionals to solidify the economic influence that the expanded world of reverse logistics will have? Answers can be found through the thought leadership, training and strong professional networks within our trade associations such as the Association of Supply Chain Management (ASCM) which develop and fill the need for knowledge workers skilled in supply chain and strategy. The Supply Chain Operations Reference (SCOR) model provides a framework that also aids in this matter by integrating the four Ps (processes, performance, practices and people). This paper describes different reverse logistics scenarios to highlight the areas where supply chain professionals can add value to the company’s strategic plan. Process frameworks and best practices are incorporated with the theme of collaboration, strategic thinking and sustainability. No longer will reverse logistics just be a support role but from that supportive vantage point will become a very active role in the future strategy of the organisation. Reverse logistics is a strategic contributor to the supply chain solutions at Hillebrand.