Question

• Q1 Discuss the monetary and environmental aspects of reverse logistics operations.

  • What additional monetary/environmental costs are involved?

  • What monetary/environmental benefits are obtained?

• Q2 Comment on how reverse logistics can be defined for service companies (e.g. health facilities, telecommunications companies, call centers etc.)

Do you think reverse logistics implementations are necessary and beneficial for such companies? Why/Why not?

• Q3 How is reverse logistics related with the concept of sustainability in supply chains?

Do you think implementing reverse logistics guarantees sustainability?

Do all reverse logistics practices contribute to sustainability?

Why/Why not?

Answer 1

A1 a) Recovering product, recycling them and taking precious part out of them like precious metal in order to use it in the recycling process or to be reused in any other way brings a huge benefit on the environment as the material are not wasted and is not causing any sort of harm to the environment infact making making a green use out of it such as recycling it. and the monetary benefits is approximately 3-15% from the bottom line to the companies as revamping the reverse logistic process turned the company reverse logistic function from a cost center to a profit source.

b)The additional monetary and environmental cost that is involved is the cost that is incuured in bringing back the goods from the end user back to the manufacturer and the cost of loading and unloading it and the cost of repacking in order to bring it back to the manufacturer is all included in the additional monetary cost and the additional environment cost includes the cost of recycling the product or the cost involved in taking out its precious part out from it.

c) The monetary and environmental benefit that are obtained are

Environmental benefit- The product included in reverese logistic process is not discarded directly its useful part are taken out in order to reuse it and and the other part is used for recycling it thus leave a great benefit on the environment.

Monetary Benefit - The part when get reused thus save further cost involved or to be occured in the making of that another product in which that part is reused and also the recycle product can be used to resale the product and thus brings a great monetary benefit.

A2- a) The reverse logistic in terms of service companies like health care facilities will defined as if any services is provided to the customer and if the customer is not satisfied with the provided services than the customer can complaint of the services as he/she can't return the services and in return he/she will be provided with more better and improved service until and unless he is satisfied.

b) The implementation of reverse logistic services is benefical for the service companies and it affects their reputation and thus results in loosing customers interest in the companies says if the a health care center is not providing the satisfactory services to its patient and even not implementing the reverse logistic thus result in loosing customer faith in the mentioned companies and also lose it reputation.

A3- a) As reverse logistic helps in reduction of harmful emission and optimise the energy usage is intrinsically aligned with the environment sustainability as some companies has zero landfill goals and work with a logistic partner that provide with recycling and the disposal of the returned product, A co-location strategy supports carbon reduction and thus achieve corporate sustainability goals.

b) Implementing reverse logistic guarantees sustainability as all elements of reverse logistic have green implication and by defination reverse logistic includes the following process such as remanufacturing, refurbishments, reuse, recycling, assest recovery, and thus engaging in reverse logistic activities guarantees companies a certain level of greens.

c) Do all reverse logistic contribute to sustainability- Almost every reverse logistic contribute to sustainabilty as the reverse goods is either reused or recycled or refurbished leading to little or no wastage and thus leads to sustainabilty in the environment.