Reverse Logistics and Resource Allocation
Consider what you have learned about reverse logistics so far and consider both statistical
analysis and people. If you were in charge of a reverse logistics organization what percentage of your
resources would you dedicate to statistical study, analysis and review and what percentage would you
dedicate for leadership and organizational training. Why did you select those percentages? Defend
your position with material from the class or other experience.
Reverse logistics is becoming an integral part of business operations in the supply chain.
Reverse logistics are activities associated with products after the point of sale, with the main
goal being optimization or making more efficient aftermarket activities. Therefore, reverse
logistics is the process which allows the return movement of products from their final
destination for reasons of capturing value or their proper disposal. Reverse logistics is a
critical component of the supply chain, and an organization should conclusively establish
programs to improve cost savings and efficiencies related to redistribution, reclamation, and
disposal of products. The commitment of resources makes the reverse chain more effective
and more efficient (Zhang, Shen & Liu, 2018).
Therefore, reverse logistics is a core part of supply chain and management should allocate
substantial resources towards statistical study, analysis, review, leadership and organizational
training. A statistical study, analysis, and review should be allocated 10% of company
REVERSE LOGISTICS AND RESOURCE ALLOCATION 2
resources. This is because managing the product life cycle is very important since customers’
dissatisfaction can play a critical role in product success. A statistical study, analysis, and
review are an integral part of reverse logistics and management must gather information to
differentiate between success or profitability and failure of products’ endpoint. This enables
management to define the internal situation and identify areas for improvement as well as
quantify reverse logistics. It also allows companies to optimize reverse logistics operations
from a tax and operational perspective. Leadership and organizational training should be
allocated 15% of the organization resources because leaders and employees must understand
the business importance of taking good care of customers. Leaders and employees should
examine and understand customer satisfaction which is essential for long-term success.
Organizational training on reverse logistics will enable leaders to become more cost-efficient
in performing companies’ supply chain activities. Besides, this creates awareness for
customer-centric approaches which add value and translates customer requirements into key
performance indicators (Zhang, Shen & Liu, 2018).
Thus, the resource allocation for reverse logistics ensures that the organization focuses on
doing the right things for customers and aligning customer acts and requirements
accordingly. Therefore, it allows management to select the right differentiators for reverse
logistics and align the organization objectives. It ensures sustainability, maximization of
shareholders value, the application of appropriate technology for integrating and
standardizing reverse logistics and creation of initiatives to avoid sale returns.
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References
Zhang, J., Shen, M., & Liu, X. P. (2018). Optimization of Reverse Logistics System Based on
Perception Perspective. JOURNAL OF ADVANCED OXIDATION
TECHNOLOGIES, 21(2).
