Abstract

Post-sale reverse logistics has grown in importance in the supply chain. As a contribution to scientific innovation, we present a structured procedure for reverse supply chain management of goods after sale. In addition, a comparison is made between the structures of direct supply chains by checking the similarity in terms of transport operations, inventory management and information management, which allows its application in the case study. This paper aims to suggest a procedure to structure the reverse logistics chain which is based on Process Management and consider three basic levels: Product Entry Management, Resource Management and Performance Management in the Reverse Logistics Chain. A bibliographical and documentary review was conducted in addition to a field research with a group of three department stores. The data collected from the companies using questionnaires and interview shows that the application of the procedure suggests that a better structuring of management in post-sales reverse logistics in the retail market can improve financial results in companies by contributing to reduce product returns and consequently its costs, improve efficiency in inventory and storage management, improve assets usage, increase revenue and promote social benefits such as donation of the products which was used and had been returned for charity.

Highlights

  • This paper aims to suggest a procedure for structuring the reverse logistic chain utilizing a bibliographical and documentary review taking into consideration structural aspects of postsales reverse logistics in the retail market, in department stores

  • Considering the bibliographical review presented above (Section 2), we propose that the structuring of a reverse logistics chain for the retail market be based on Process Management, considering three basic levels: Product Entry Management in the Reverse Logistics Chain; Resource Management in the Reverse Logistics Chain; Performance Management in the Reverse Logistics Chain

  • All of them have an exchange policy based on the Brazilian Customer Defense Law (Código de Defesa do Consumidor), this situation being the first condition for management of product entry in the reverse logistics flow by means of a policy stating what can be accepted into this flow (Rogers and Tibben-Lembke, 1998)

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Summary

Introduction

Reverse logistics has been recognized as a source of competitive advantage for companies in the current business environment. The increasing importance of reverse logistics is stimulated by a variety of factors, among which Leite (1998), Rogers and Tibben-Lembke (2001) and Lacerda (2002) list the following: (1) pressure imposed by law; (2) the need for reducing costs; (3) reduction of products and services lifecycles; (4) proposition of a different corporate image and (5) raising of environmental awareness. Reverse logistics is still not treated by companies as an established process in the logistics chain. This is evident when we look at how companies treat the issue. In many cases there is no planning for this process, making it difficult for companies to control achieved results and, making it impossible for them to define actions to improve this flow (Leite, 2002)

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