LITERATURE REVIEW
For the review of literature, reverse logistics are conceptualized in plethora of customs by diverse people in companies as it the development of moving products from the end of utilization to other point for reason of evoking such outstanding value also, reverse logistics dealing to the research study will make use of the ultimate appropriate discarding of certain products involved like in speaking to Dell, HP as well as Lenovo products (1999). Yes, it is true that reverse logistics implies the crucial aspect of these companies supply chain management (1998). These companies did not devote enough time to supply management for the understanding of reverse logistics as it starts to pay attention for today’s business (1995). As companies like, Dell and IBM-Lenovo will began the benchmarking of its return operation along with best class logistics operators (1999) and the specializing of such return ways are in demand as the services have increased in the market (1998). As Dell and HP are identifying the planned assessment of reverse logistics scheme for the returning of outdated supplies so that the companies can uphold goods on supplier trade shelf new and famous ( 2000)
Moreover, product life cycles are restricting and evident in the computer business as innovative designs were brought to the market in persuading consumers to augment the incidence of product purchase as the consumers are promoted from better selection and improved performance as the trend resulted the amplified unsold products and augmented returns, grow such packaging resources (1999). The shorter merchandise existence cycles increases the volume of merchandise returns as well as waste ingoing such reverse logistics system as well as the cost of managing reverse logistics for Dell as well as IBM-Lenovo respectively (1995). There are fresh channels being develop in order to supply consumers with ample ways to buy products. The direct channeling for these companies will tend to increase probability of returned products, for instance, Dell are selling personal computers online and expects a ten to fifteen percent of the products to be returned straight to the company and or by using logistics provider. The direct conduit will find loyal customers not merely local but global as the managing of returns has become ever more difficult and exclusive and the possibility of placing weight on systems within the reverse logistics of those companies mentioned (2000; 1999).
Researchers, saw that offering logistics services can be crucial, as growing amount of logistics companies will have to change into certain providers of logistics process as they are likely to provide absolute solution for compilation, carrying and value service such as the producing of goods on customer demands and not flood with surplus inventory (1999) as the latter is pressed upstream to the suppliers as convincing to administer inventory effectively in upholding spirited edge. Aside, the reverse logistics of the companies were used in cleaning up clientele’s out of date inventories as the customers will have to buy fresh goods (1997) as Dell and Lenovo can assume open-minded return policies allowing those companies to assemble outdated extra parts and mechanisms from its chosen dealers and create again the automatic extra parts to regain any value (2000). The manufacturer planned use of reverse logistics abilities has increased conduit associates cost of altering suppliers (2000). The adoption and implementation of reverse logistics policy is tactical behavior of mounting linkage that makes hard and tender for the customers and enough information back-up is a means of extending connection in order to have competent operation in reverse logistics (2002) and for the realization, the logistics managers of those companies are prepared with better visibility of products and services as being returned and process the delivery and return of such products resourcefully.
The fact that, reverse logistics is gradually demanded, there can be issues and challenges common in Dell and Lenovo and other companies for the preparation and running operations related to reverse logistics, observations by (1998) and (2000) indicate the following assumptions: The position of development of reverse logistics is analogous to that of inbound logistics and the scope of reverse logistics has expanded from service parts management to include other areas and has attracted significant attention of a great majority of companies. The reverse logistics process are not mapped in these companies under huge scope of reverse logistics, Dell and other companies may discover it hard to plan and realize as well as control the development appropriately and without the right mapping of the process in reverse logistics, mechanisms and relations can’t be determined easily only unless Dell and Lenovo will have to comprehend certain complication of process of reverse logistics as it enables to recognize strength and weakness and will carry action program for the implementation of strategies pointing to reverse logistics of the companies ( 1998) although it can be difficult to influence upon and gain advantage from reverse logistics in better motion.
The process of reverse logistics are typically managed inside single company or several companies and rarely athwart supply chain as partnership among suppliers and transportation carriers as well as stockroom operators and other overhaul providers will outcome in adequate volumes for the justification of reverse logistics (1998). Thus, Dell and IBM-Lenovo don’t begin the reverse logistics movement as results of development and choice making on part of the company but the response to measures by customers or the downstream conduit members. Moreover, the situation wherein supply chain drives dimension and capacity of reverse logistics troubles that Dell and Lenovo faces, there is ample capacity of reverse logistics issue as there is transaction among the customers openly and that retailer usually have large quantity of returned products to transact rather than suppliers of products .
METHODOLOGY
The researchers conducted six pilot interviews with senior officers involved in the programs for reverse logistics program. The interview focused on crucial key areas of concentration such as supply promise, improvement and presentation relating to the use of reverse logistics as the officers insights joined with information obtain from review of the literature helped for the development of the research project. The research project has investigated how information technology smoothes the progress of reverse logistics and based on the collected data, there was a detailed marketing implication provided through the use of interview technique as the method of research project involves such interviews of six (6) senior officers from the selected computer company in China. The interview method was chosen as it allows the researchers of having opportunities to prove as well as ask both nominated and open-ended type of questions.
There was an interview guide that included the list of questions explored and suggestions for topic updating as the interview will realize goals and objectives and make interview process systematic and inclusive in useful stance. In this research project, the target interviewees will comprise of possible six Senior Officers from the chosen global computer companies of the following: Lenovo, Acer, Dell, HP and IBM – as the companies denote the most portion of market share in China and the global market. The interviews was conducted face to face in the workplace of the senior officers as the interviewees provided detailed advice on how to use and keep successful of the reverse logistics within their respective company’s. The secondary data for the project was collected through the use of journal articles and books.
FINDINGS AND DISCUSSIONS
Supply chain management deals with high amount of variation in supply chain and its logistics as there includes numerous tiers of suppliers for the supply chain and OEM will offer warranty for the companies’ products and provide guarantee services at diverse location. There indicates that expensive and unrecoverable order is missing from connections between customer and dealer as well as OEM warranty axis and the supplier as there create organization procedure that efficiently categorize the guarantee returned parts to decide the dilemma that excessively affirmed the amount of warranty parts being returned. The logistics use supportive efforts to establish an integrated system that can control and observe operational and strategic capability competently among diverse tiers of companies as there is ability to respond to customer focuses and create unique sources of customer value that lead to customer satisfaction. In essence, effective handling of warranty returns is a crucial part of customer satisfaction and effective collection and analysis of warranty data is critical to the reduction of warranty returns ( 2001).
Thus, when logistics manager develops processes that can be rapidly and successfully altered to fit the needs of his or her business partner, the firm may develop an innovative capability. When it comes to reverse logistics, managers must come up with human resource driven innovation to become more effective. In this research, innovation was found to be a mediator in the resource commitment-reverse logistics performance relationship within the participants as the resources make reverse logistics programs efficient and effective but have a payoff only when the resources are used in such a manner as to develop innovative approaches to managing returns. The research project can be a call for managers to consider committing more resources to reverse logistics as they grow, even if it means moving resources from other areas as commitment significantly influenced innovation and innovation was absolutely related to strategic presentation and to prepared service excellence. By effectively positioning resources to take advantage of reverse logistics optimization, Dell, Lenovo and others will enjoy superior performance. The lessons learned from this research? The reverse logistics deserves special attention in terms of labor. It is not easy to accommodate returns into standard outward-bound distribution systems due to the lack of standardization in reverse distribution.
A split returns system including personnel with specific authority and responsibility for reverse logistics is desirable. This means adequate resources must be allocated to hire reverse logistics personnel. Second, the requisite managerial resources should be focused on developing innovative ways to handle returns. As (2003) suggested, ‘’companies who succeed at reverse logistics management will end up generating certain customized knowledge and integrate reverse logistics organization into the infrastructure. The companies will improve one of industry software package rather than by trying to make application of technology that came out. Thus, innovation process of reverse logistics can likely provide those companies such quality benefit while furnishing huge companies with strategic bludgeon’’. (2003)
CONCLUSION AND RECOMMENDATIONS
In this research project, there consider ways in which reverse logistics process differ from forward logistics processes in supplier environment as differences are substantial and cover such aspects of logistics. The need of uniformity in the physical condition of products has consequences for reverse logistics. It means sorting and evaluation of product must be done as there complicates the negotiations to sell the product and vendor concerns will reduce number of possible buyers of the product in a way not seen with novel product. The outcome is that, reverse logistics of products provides such challenges and opportunities that are not found in the forward logistics. Aside, certain techniques are being discovered to maximize the effectiveness of reverse logistics, as Dell, HP, Lenovo and other companies as well as the researchers are now starting to realize significant differences and that future research is required to determine how to best organize operations for the reverse logistics in order to deal with particular challenges of the business.
Upon study completion, there recommends a set of logistics programs intended for improving operations of reverse logistics such as the following points:
Set up of Spare Part Return Screening and Consolidation Center
In such manner, unused parts found to be non-defective can be reused by other country right away. Furthermore, demand for extra parts can be satisfied within short times when pertinent parts are available Dell and Lenovo’s asset utilization can be enhanced and management costs are lowered down.
Standardize spare parts return decision
There shows the recommended decision flow for extra parts return the decision tests possible for return that includes the special business unit in focus and holding inadequate inventory in meeting the demands of customers.
Revise returns policy
The returns policy is revised to leverage on the new reverse logistics configuration in which returns are shipped to China instead of going direct to main headquarters.
The policy changes will include:
Ø part’s least amount money value
Ø smallest amount money value per consignment
Review performance metrics
Old performance metrics must be revised and realigned with the changes in the new reverse logistics configuration. As the current metrics adopted by Dell, Lenovo and others do not guide executives to have right decisions that give advantage to the company as novel metrics are to be considered:
Ø amount of parts whose merchandise costs are inferior than shipment costs being returned
Ø quantity of returned parts for past six months not demanded
Ø number of returned shipments being held at customs
Ø rotate time for complete reverse logistics process
Set up reverse logistics Web site
The reverse logistics website will have to set-up incorporated along such heritage system as new features will be accessible in company’s website to augment visibility and organization in terns of:
Ø follow and outline agenda
Ø practical parts information inform
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