Reverse Logistics Network Design
REVERSE LOGISTICS NETWORK DESIGN 2
Describe and define different types of Networks, telecommunications, and mobile technology with the
application of a company of your choice and how they are in reverse logistics of recalls and recycling.
This is a tracking and tracing process. So, first, diagram what the flow process might be from a starting
point. You get to define that starting point. This is not that easy. Be careful to think where a product starts
and where it ends in the flow.
Write a 3 to 5 page paper on what you find. And a picture of chart of the flow is part of that page count.
So, draw something. Save words; but clearly explain what you show.
Reverse Logistics Network Design
Reverse logistics is a new field in the supply chain, which empowers logistics
managers to improve performance and customer satisfaction. Networks, telecommunications,
and mobile technology play a vital role for logistics companies, especially in the unit of reverse
logistics. They play an essential role in logistic recalls and recycling. Besides, networks,
telecommunications, and mobile technology enhance the process of tracking tracing of logistics’
products and services. Thus, reverse logistics has network modeling for all operations related to
the reuse of materials and products. Reverse logistics is the process of transferring services or
products from their usual destination for the aim of appropriate disposal or to capture value.
Producers are incorporating technology, networks in reverse logistics in order to have a design
that is aligned with government legislation, customer demands and economic benefits from
product recovery. Logistics managers are faced with extreme challenges in reverse design
networks as they try to build product recovery network into traditional logistics’ networks and
how to manage the impacts of uncertainty in the reverse logistics supply chain. Therefore,
Networks, telecommunications, and mobile technology help logistics managers to develop
reverse logistics network that is effective and efficient in recalling, recycling, tracking and
tracing as well as in promoting the overall performance of logistics companies (Govindan &
Soleimani, 2017).
REVERSE LOGISTICS NETWORK DESIGN 3
The primary goal of design for reverse logistics network is to assess the programs
and policies of a company to meet targets to achieve both short- and long-term strategic
objectives. Logistics network design impacts many business units or functional areas of a
company. Networks in reverse logistics help in environmental initiatives, economic objectives of
reducing raw material cost and enhancing customer satisfaction. Networks are applied in facility
locations, inventory management, transportation and production planning. Types of reverse
logistics networks include a directly reusable network which is easily re-used with little-added
efforts such as bottles or containers and manufacturing network which helps in dismantling
returned products and using parts or components as new designs such as a copy machine.
Besides, the repair service network is used for defective products returned and repaired, and
recycling networks are used for recycling raw materials.
Telecommunications and mobile technology are essential for the implementation
of effective and efficient reverse logistics process and data management. Logistics companies
heavily rely on telecommunications and mobile technology to manage their operations because
they enable integration and support of logistics systems or networks. Besides, they enhance agile
and efficient reverse logistics that promote recalling, recycling, tracking, and tracing of logistics
products. Telecommunications and mobile technology offer supportive solutions for reverse
logistics processes such as tracking and tracing activities. They are used to support and
streamline reverse logistics operations. Technology systems include electronic data interchange,
and customer relationship management, enterprise resource planning and return management
systems. Mobile technology is used to enhance and streamline the operations of the reverse
logistics. Therefore, mobile technology promotes monitoring and tracking of product movement.
For instance, barcodes and RFID technologies are used to create effective reverse logistics.
REVERSE LOGISTICS NETWORK DESIGN 4
Telecommunications and mobile technology facilitate the process of product
tracking system by reducing cost and customer dissatisfaction. They create computerized
systems for tracking return products as well as improving and streamlining the reverse logistics
flows. Thus, technology in reverse logistics helps in recalls, recycling, tracking and tracing of
returned products by creating returns’ databases, approving or denying claims, documenting
returns’ information, seamless integration into online stores, and issuing credits for service
claims. Mobile technology allows customers to process a return and generate a prepaid shipping
label and helps logistics companies to know what providing real-time tracking numbers is
returning. Telecommunications and mobile technology have allowed reverse logistics companies
to automate returns for customers and phone support agents as well as setting custom rules for
return policies. Besides, systems provide return aging reports with return package tracking and
integrated courier services such as drop-off locator. Moreover, telecommunications and mobile
technology promote communication with various or multiple warehouse locations as well as
validating through invoice history and liability warranty databases. This enhances the processes
of tracking and tracing of products for reverse logistics companies (John, Sridharan & Kumar,
2018).
Incorporating telecommunications and mobile technology in reverse logistics for
a waste management company streamlines flow and communication of waste products. They
allow customers to deposit their e-waste at specific centers for collection as well as pay for the
recycling fee. Therefore, they help manufacturing companies to invest in used product recovery
activities to design sustainable logistics networks and supply chains. The reverse logistics
network will look as indicated below:
REVERSE LOGISTICS NETWORK DESIGN 5
The process starts at the return zones for waste products. Customers use
technology to notify waste management company on their intent to return or supply the waste
products by using IT systems such as depositing their e-waste at particular collection centers and
paying for the recycling fees. After depositing the waste products to collection centers, the
reverse logistics company can send them to either disassembly centers or re-manufacturing
centers. The logistics manager transfers the products to secondary markets from re-
manufacturing and disassembly centers. However, under the designed reverse logistics network,
ones the products reach disassembly centers; they are either transferred to repairing or
reconditioning and recycling centers. The waste products are transferred to secondary markets
after repairing or reconditioning. The other chain takes a different route of recycling the waste
products. Waste products are either disposed of or recycled and sold back through primary
markets as new products (John, Sridharan & Kumar, 2018).
Product
Return Zones
Secondary
Markets
Disassembly
Centers
Remanufactur
ing Centers
Collection
Centers
Primary
Markets
Recycling
Centers
Repairing/
Reconditionin
g Centers
Disposal
Centers
REVERSE LOGISTICS NETWORK DESIGN 6
Telecommunications and mobile technology assists in developing infrastructure
and applications that help logistic companies to track and trace products as well as help recycling
and recalling processes. Logistics managers use mobile technology to track the locations of their
trucks. Besides, it helps logistics managers to set up geo-phones to assist alerts when trucks are
nearing their destination. Also, mobile technology provides real-time traffic data, which
improves the vehicle visualization as well as automatically tracking driver hours and reporting
information for fuel tax. Mobile technology assists in tracking vehicle maintenance needs and
generating alerts in case of engine generate trouble code. This helps to reduce or prevent
breakdowns and prolongs the lives of the vehicle (Rezaee, Dehghanian, Fahimnia & Beamon,
2017). Moreover, mobile technology helps in track speeding, harsh and excessive idling and
other conditions in order to save costs and improve safety as well as streamline the reverse
logistics network.
Telecommunications creates network communications and sensors that connect
logistics machines to the network or Internet, making it feasible to monitor and track machines or
equipment as well as remote control devices. This enhances the process of communication
through alerts to establish machines to need repair or reconditioning. Furthermore, it assists in up
streaming manufacturing, ordering, and warehousing logistics. It also assists in transportation
services by tracking and tracing the movement of vehicles and monitoring temperature, vibration
and other components that impact the condition of the road. This enhances environmental
protection and sustainability of reverse logistics network. Telecommunications and mobile
technology create low-cost sensors and wireless technologies, which streamline the reverse
logistics, network and provide last-mile visibility. Waste management companies can also use
technology to develop drone delivery and driverless cars as well as cloud base computing and
REVERSE LOGISTICS NETWORK DESIGN 7
business analytics. These factors make the reverse logistics network designs efficient and
effective in tracing, tracking and recycling waste products or various products under the reverse
logistics process.
REVERSE LOGISTICS NETWORK DESIGN 8
References
Govindan, K., & Soleimani, H. (2017). A review of reverse logistics and closed-loop supply
chains: a Journal of Cleaner Production focus. Journal of Cleaner Production, 142, 371-
384.
John, S. T., Sridharan, R., & Kumar, P. R. (2018). Reverse logistics network design: a case of
mobile phones and digital cameras. The International Journal of Advanced
Manufacturing Technology, 94(1-4), 615-631.
Rezaee, A., Dehghanian, F., Fahimnia, B., & Beamon, B. (2017). Green supply chain network
design with stochastic demand and carbon price. Annals of Operations Research, 250(2),
463-485.
