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Automobile Industry and Reverse Logistics

Automobile Industry and Reverse Logistics

Create and develop a scenario in which an automotive parts or other company would need a
reverse logistics program. Discuss the purpose of the company, describe the scenario in detail,
and discuss the steps needed to implement the reverse logistics program.
Automobile Industry and Reverse Logistics

Reverse logistics is becoming more relevant essential to the automobile industry due to diverse
reasons such as increasing product recalls and the legal policies regarding environmental and
sustainable challenges. The demand for recapturing value and recovery and reuse of return or old
automobiles create a competitive advantage for auto companies. Thus, companies should have
sufficient, satisfactory and efficient reverse logistics network for reusing, recalling and
recovering returned automobiles (Casper & Sundin, 2018). Reverse logistics is one of the most
strategic processes in the supply chain that creates competitive advantage through improved
customer satisfaction, recapturing value, recovery, reusing and ensuring proper disposal. This
paper investigates the activities of the auto parts segment company, leadership in the
manufacturing of side shafts parts to the US automotive industry.
Reverse logistics activities are significant in this market segment. This is because the
operations ensure collection, evaluation, stocking, and transportation of parts that are re-
manufactured at the industrial unit accountable for this function. This company is responsible for
recovering used parts and ensures socially and environmentally responsible operations as well as

gaining profits through reverse logistics. The company has internal cultural development and
adopts new structural arrangements and processes. Therefore, it is crucial to creating a reverse
distribution channel and strategically sustaining the auto parts market as well as recovering
products (Casper & Sundin, 2018). The logistics operations are mainly that responsible for
increasing profits and quality level of customer services. The product life extension idea by
possibilities of repair, reuse and remanufacturing of shafts by the methods to turn the original
products or making it new again as well as replacing damaged components. Also, it enhances re-
start to use without modifications. The material life cycle extension is achieved through
recycling, reclaiming and maintaining original material configuration. Therefore, all operations
recover quality standards through replacement of parts, machining, package, and lubrication and
giving the conditions to make end-of-life or a used product as good as new (Casper & Sundin,
The organization started to supply constant velocity joints for automobile consumers and
continue growing its supply of the original products and additional markets in the United States
and worldwide. The organization supports major automotive assembly plants in the US markets
with a remarkable leading share of the home market of vehicles equipped with side shafts. The
organization has an attractive commitment to excellence, and its efforts from employees make it
consumer choice for handling returned products. The organization has well-equipped
laboratories with the modern technologies to provide approvals and testing of side shafts and
components for whole US market as well as vehicle assembled in the US and exported to various
countries worldwide. Since the organizational objective is to give a one-stop service that allows
it to focus its full capabilities on needs of consumers and combine entire dependability with a

pro-active strategy to quality. This ensures that the unique products are always produced just-in-
time specifications (Govindan, Soleimani & Kannan, 2015).

Procedures for Adopting Reverse Logistics

Reverse logistics is vital for the organization in order to ensure proper handling of
returned products. Besides the law and other demands for side shafts, there are other legal
reasons for compelling the organization to adopt reverse logistics. Reverse logistics network and
systems will be necessary for ensuring the proper handling of returned autos and recapturing
value for the company. This is because the US markets have diverse characteristics such as
climate and road pavements making the life cycles of the product more diverse in all conditions.
Most of the return products come from dismantled and old automobiles as well as from fixed or
refurbished parts (Govindan, Soleimani & Kannan, 2015). Side shafts help to reclaim and
remanufacture returned products. Products at final customers are turned to manufacturers where
are crashed at end-of-life. There are little workshops that help the organization to de-manufacture
or remanufacture most products in their scrap yards. The company reverse system flow of parts
includes a disassembly process. However, this lacks formal proceedings expect the legal and
fiscal ones. Therefore, volume, inspection, and the package of these parts are never the same.
The process includes the effective and efficient flow of returned products to the
organization. The first arrangement is establishing a new reverse structure to monitor and track
returned products. The organization should establish a new facility with all structures to handle
returns. This, however, increases the cost of handling returns. The management should try
employees to handle the reverse process effectively. The organization maintains stocks of
models of side shafts, reduces area utilization by permitting to store parts in the pavilion and the

experienced workforce disassemble the returned products. These allow inspection of materials
that are approved or not recovered. The next step is to sort out unfeasible parts and eventual
elements to recycle as raw materials (Demirel, Demirel & Gökçen, 2016).
The proceeding step ensures chemical cleaning. This is the cleaning process to restore
auto parts and recover the surface in order to increase internal dimensions and tolerances for
bearing. The process has a grinding machine to avoid scratches and fissures. The next step
ensures further inspection and evaluation of side shafts for effective recycling. Therefore, the
company can approve the process of rebuilding the top stock and gearing for the re-assembly
process. At the assembly station, the company adds new parts to the constant velocity joint such
as grease and water to ensure proper handling of the old automobiles. Return process should
ensure assessment of reusable, valuable and hazardous resources and parts of the product as well
as analyzing of assembly. The company should also analyze the risks and uncertainties at the
disassembly process in case the product has defective components and joint parts in it. This
improves as well as decreases the lifetime of the product, especially when using disassembly
damage (Demirel, Demirel & Gökçen, 2016). The organization should identify the step of
disassembly in order to determine the dismantling by use of destructive and non-destructive
Steps to Follow
 Remanufacturers first disassembly such as scrap
 Stock the company facility location
 Manual inspection and disassembly
 Manual and chemical cleaning

 Residue and recovery of surface
 Control of quality at the inspection and sorting process
 Main gearing recovery
 Re-assembling new elements
 Individual packages
 Expedition

The adoption of the reverse logistics process helps in enhancing safety image and
ensuring market recognition as well as helps in eliminating legal costs referred to accidents. This
was occurring due to the application of asymmetrical second hand or fix or refurbished
components and parts. Therefore, reverse logistics ensures that manufacturers maintain high-
quality levels as possible by following the original design developed during the manufacturing
process. The workforce should be trained to work with many models and generations of products
in the automobile industry. They should be very skilled because the automobile manufacturing
sectors are mostly manual procedures. The remanufactured product is roughly handmade
products with high productivity level to ensure as good as the original design and product.
However, the recycling process ensures products are used at the end of their life cycle. The
process should involve “the end-of-life auto, disassembling, shredding, magnetic separation,
sink-float separation, eddy current separation” and recovery of products or raw materials for the
next manufacturing process.



Casper, R., & Sundin, E. (2018). Reverse Logistics Transportation and Packaging Concepts in
Automotive Remanufacturing. Procedia Manufacturing, 25, 154-160.
Demirel, E., Demirel, N., & Gökçen, H. (2016). A mixed integer linear programming model to
optimize reverse logistics activities of end-of-life vehicles in Turkey. Journal of Cleaner
Production, 112, 2101-2113.
Govindan, K., Soleimani, H., & Kannan, D. (2015). Reverse logistics and closed-loop supply
chain: A comprehensive review to explore the future. European Journal of Operational
Research, 240(3), 603-626.

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