Should reverse logistics be labeled as the latest business trend? Should it be started on a company whim or in a half-measured capacity? Could focusing on reverse logistics magnify companies’ mistakes even more, or will it focus on the heart of manufacturing, distributors, wholesalers, or retailer's profitability. If we look at using a scoring method, which would focus the measured capabilities of capacity, which could emphasis the return equation, and appears to point to the right measure of resources. Any reverse logistics initiative should reduce real costs which intern satisfies the customer.
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This End-to-End (E2E) supply operations management requires standard operating procedures (SOP’s) that manage the throughput at the beginning and the end of fulfillment process.
To manage this process in reverse logistics and fulfillment begins with collaboration:
o Working with finance is essential and should be a requirement prior to a reverse logistics implementation. A complete understanding of reversing any accounts receivables (AR) and this procedure should pre-determine any days of sales outstanding (DSOs) which then revise buying and credit terms. Any adjustments to S&OP capacity for future forecasts, or proper setbacks to hold limits should be determined. These should also include the Sarbanes-Oxley (SOX) compliance codes since nobody wants the responsibility of any financial compliance issues during an audit.
o Working with logistics, 3PL carriers, warehousing, or distribution centers, (DCs) is yet another requirement of the collaborative effort. This updates all SKUs’ for replenishment, back-count and updates the materials master list (MM) by indicating the returned material authorization (RMA) is returned to inventory. It also indicates whether (i.e. Quality or research & development (R&D), obsolete, scrap, residual, re-use, that manages the re-cycled waste) is ready for pick-up which includes shipping and destination instructions for back to origin, cost of freight returns, and processing charges for shipments.
o Working with a trade exporter might be one of the most complex areas of concern. Seeing a return materials acquisition notification from a legislative licensing agency could create undo-stress with trade compliance personnel. Understanding exporting licensing, various exporting costs (duties, taxes, or manual reconciliation, for international trade terms) and any possible duplicating problems beginning with the destination point and circulating back to a single return material authorization (RMA) form.
o Working with R&D or quality, begin with the quality acceptance rate (QAR) challenge. These departments usually have a high degree of analytical expertise and can back up the data collected. Whether it...