SCM / Reverse Logistics

[Monty]

Hello everybody!

Im a student at the Univerisity of Mannheim in Germany. Im currently working on my term paper in logistics which is about interactive learning objects (i.e.Beer Game). My goal is to develop a game which should demonstrate some kind of effect. (i.e Beer game --> Bullwhip Effect). Im very interested in reverse logistics and would like to make such a learning object about it. Unfortunaley the Chair of Logistics here at Mannheim doesn´t focus too much on RL and therefore my knowledge about this subject is very restricted. I have been searching like crazy for sth. I could use for my game but the only thing i could find is sth. about product recovery behaviour in closed loop supply chains. To be precise:
I would appreciate very much if somebody could give me a hand on what interesting topics inside reverse logistics we have(maybe sth with a very unique effect as the bullwhip effect), which could be well fitted into such a game!

I hope somebody can help me out on this one!

Thanks a lot

Christian

[TopLink]

Hi Christian,

Welcome to SCF.


One of the problems I have seen in reverse logistics, relates to the return of plastic crates. This happens in the bread and milk industries. As the grocery retailers now move to RPCs (Returnable Plastic Crates) this volume will increase.

For the Bread and Milk suppliers, the issues often revolve around actually getting the crates back! Many are stolen. Then once back, they have to be washed for reuse.

[Monty]

Hi TopLink!

Thank you for your reply! I finally found something interesting which is similiar to what you suggested. Its about how the structure of the reverse channel may influence the forward channel decisions. First you model a two-echelon supply chain with a single Manufacturer and a single retailer with product remanufacturing. Based on three different reverse channel formats (manufacturer collects used products, retailer collects used products or a third party collects used products) you can show that the agent who is closer to the customer (the retailer) is the most effective undertaker of the product collection activity for the manufacturer.

Cheers

Christian

[norsemagik]

Hi,
Have been involved with transportation for a number of years but am wondering if some one can guide me to a new text book with the latest terminolgy and abbreviations?

Reverse logistics to me makes the most sense when a Manufacturer locates manufacturing facilities near the customers with the highest cost to serve as usually then the return freight charges for the supplies or product utilized in the first plant or another plant get transported and may often get manufactured or processed at lower cost.

Suppliers could be substituted for a manufacturing plant. Locating a plant or supplier in that high cost customer area or near a heavily used distribution center might also make sense; at least for truck transportation as either location will likely have more trucks going in loaded than coming out loaded. This might be something totally different than you are discussing though, hopefully it fits.

The crates bring up an interesting issue though in the difficulty of getting them back. It seems for instance that pallets these days are becoming a forgotten issue as warehousing is charging its customers for the pallets and therefore has no vested interest in getting them back. Sam's in the 80's would get so many pallets stored outside waiting for the supplier to pick them up that they actually had to sell pallets to reduce the piles. Has the practice changed?

In the Food Industry Chep seems to be doing well but controls their own shipping of returns and redistribution. Christian's scenario makes sense though with an incentive to the customer of some kind to do the collecting and shipping.
Regards,

[Starbucks Junkie]

Originally Posted by norsemagik

Hi,

In the Food Industry Chep seems to be doing well but controls their own shipping of returns and redistribution. Christian's scenario makes sense though with an incentive to the customer of some kind to do the collecting and shipping.
Regards,

A healthy alternative to CHEP are a company called LPR based out of Redditch, they are currently managing Kimberley Clarks pallets logistics, they are little known in the UK but have the backing of the French parent company where in Europe they are dominant.
They have a more innovative approach then CHEP and are gaining respect in the industry for there communication, feedback and honesty amongst their clientelle.

[Starbucks Junkie]

Originally Posted by norsemagik

Hi,

In the Food Industry Chep seems to be doing well but controls their own shipping of returns and redistribution. Christian's scenario makes sense though with an incentive to the customer of some kind to do the collecting and shipping.
Regards,

A healthy alternative to CHEP are a company called LPR based out of Redditch - UK, they are currently managing Kimberley Clarks pallets logistics, they are little known in the UK but have the backing of the French parent company where in Europe they are dominant.
They have a more innovative approach then CHEP and are gaining respect in the industry for there communication, feedback and honesty amongst their clientelle.

[Starbucks Junkie]

I liked them so much I posted the thread twice :0)