GROUP 3: SUSTAINABILITY COMPULSORY

NAMES:

JOEL GWATSVAIRA R2210014G

QUESTION: discuss the green reverse logistics practices that are employed by an
organization of your choice, in your answer include the following:

Definition of key terms

Green logistics: Sbihi and Eglese (2007) defined green logistics as the concerned with
producing and distributing goods in a sustainable way, taking account of environmental and
social factors.

Reverse logistics: is a process in which a manufacturer systematically accepts preciously

shipped products or parts from point of consumption for possible recycling, remanufacturing
or disposal (Dowlatshahi, 2000, 143)

While companies struggle at times to find ways to make their supply chains more
environmental friendly, one subset of supply chain stands out as inherently green: reverse
logistics. Because reverse logistics by definition includes processes such as remanufacturing,
refurbishment, recycle, reuse and asset recovery, engaging in reverse logistics activities
guarantees companies a certain level of green.

a) Benefits of optimized reverse logistics

The return process is a necessary part of selling products or materials. Optimized reverse
logistics produce financial benefits while positively impacting the environment and business
culture. Refining the processes for what happens to products after delivery helps retain
customers and save money. The product data collected when engaging with customers after
delivery is and advantage of well executed reverse logistics. Optimized reverse logistics also
leads to better supply chain visibility, which leads to benefits like cost reduction, greater
customer satisfaction, loss reduction, improved brand sentiment and waste reduction and
greater sustainability.

Cost reduction

An optimized reverse logistics can help business to cut its costs in several ways. By having
the right players and processes in place, one can save costs related to transportation,
administration, repairs, quality assurance and disposal. Cost saving can be measured by
tracking the total cost of ownership of each product category.

Greater customer satisfaction

One of the best ways to meet business goals is to focus on customer retention. It is much
more difficult to attract new customers than to keep the ones already in. research shows that
roughly 96% of customers are willing to buy from a retailer again if they have a positive
return experience. Customer satisfaction can be made through providing free return shipping,
giving customers a full refund and not requiring customers to send back the original
packaging.

b) Strategies to optimize reverse logistics

Evaluate relevant policies and agreements

Review and revise the procedures related to your company’s returns and repairs. These
policies should be clear and consider the root causes of returns and repairs. The way a
company deals with returns and repairs can be competitive differentiators.

Collaboration with suppliers

Close collaboration with suppliers can help ensure a smooth, integrated experience for
customers, not a disjointed one they will struggle to navigate.

Use data to optimize processes

By collecting data on product returns, one can understand why customers may be returning
products then adjustments in sales, product design and forward logistics processes can be
made accordingly.

Examine logistics and transportation

Regularly review the processes for forward and reverse logistics and transportation.
Determine if it is feasible to integrate some of these processes and transit. For example, if
your delivery drivers can pick up empty pallets as they drop off full pallets, you save trips,
time and money.

Automate

Use of cloud-based logistics software to help streamline operations. For instance, a software
system can track assets recovery, manage refurbishment and provide business intelligence
analytics.

c) How reverse logistics create value

Reverse logistics creates value by turning waste into sales and builds customer trust and how
reverse logistics can create value really depends on the goods and equipment you have, the
strength of your existing, current customers and where you need cash flow to meet that
potential.. Business resale, reuse and recycle returned products. Taking into consideration the
telecommunication company, reverse logistics add value by giving one a clear path to accept
returns and replace equipment quickly so that one can keep the network up and customers
happy. It is driven by the customers themselves and will ultimately provide with equipment
that needs to be repaired, broken down into parts or sold.

Growing your network and moving to the next line of equipment is a natural progression. A
reverse logistics network create value by giving you a clear path to understand your network
and improving it before things crash. The eventual handoff of equipment for repairs or
replacement to a third party will give you a way to generate some final income or savings for
the organization.

d) Key environmental assessment matrix tool

Leopold matrix is a qualitative measurement of environmental/social impact of a

development project.