The Importance of Processes in Reverse Logistics Essay

The Importance of Processes in Reverse Logistics - Essay Example least cost and highest efficiency). A reverse logistics operation is considerably different from forward logistics. It must establish convenient collection points to receive the used goods from the final customer or remove assets from the supply chain so that more efficient use of inventory / material overall can be achieved. It requires packaging and storage systems that will ensure that most of the value still remaining in the used good is not lost due to careless handling. It often requires the development of a transportation mode that is compatible with existing forward logistic system. Disposition can include returning assets into inventory pools or warehouses for storage, returning goods to the original manufacturer for reimbursement, selling goods on a secondary market, recycling assets, or a combination that will yield maximum value for the assets in question. Reverse logistics, simply put, comprise all activities associated with a product/service after the point of sale, the ultimate goal to optimize or make more efficient aftermarket activity thus saving money. However, easy as it may looks , the processes involved requires a large degree of considerations coupled with careful planning. Speed of retrieval is the primary measure of efficiency and ... Speed of retrieval is the primary measure of efficiency and the choice of the method of transportation is the primary determinant of speed. Unlike in the distribution system where deliveries are made to stationary locations, retrieval would often require door-to-door visits. This is especially a problem in hard to access areas where travel would be tedious and costly. A decision has to be made on what method would be efficient. It may require a combination of measures such as carriers (trucks) for aggregate acquisition and vans/ordinary passenger vehicle for unit acquisition. Now what was stated above is only the acquisition part. There is also the delivery of the warehoused materials to the processing site. Since transportation will now be in terms of aggregate terms, a carrier must be assigned. In all these process, there is the possibility of problems suddenly appearing. In some case, carriers may always experience breakdowns or may get lost from trying to find the retrieval point. This would generally lead to higher costs as maintenance and fuel expenditures become large. Transportation may be outsourced and these would generally necessitate an analysis of current market rates. Again, the efficiency of the carrier should be evaluated as they may prove to be too costly for hiring and ineffective for the planned process. Warehousing A logistician's main problem in warehousing Returned products is how to store them until a decision is made on what to do with them. The returned products will require space - that is a fact that every logistician should realize and the firm can not relegate the storage of returning products to others in a way they can when they are distributing new products. Additional space would mean additional cost of handling to the

IMPROVING BUSINESS Performance Essay Example | Topics and Well Written Essays - 1250 words

IMPROVING BUSINESS Performance - Essay Example The research in this case targets the improvement of performance of the company. The main activity in this case would be the analysis of the current performance of the company to determine the current performance, requirements and the challenges (Maginn 2007, p, 288). The solution of the challenges will result following the formulations of means to transform the challenges into opportunities. The exercise targets the division of the company into sectors of performance. The difficulties will then be determined in regards to the company’s performance. Recommendations for the solution of the problems in every perspective will then be made. Eventually, assessment will be made on the recommendations to pride from more efficient mechanisms for improving the business. Introduction The fact that PIPEWORK plc is an old established UK company, it is not at its performing at its best due to various reasons. The company has challenges with lack of a succession plan that makes it look visi onless. Lack of morale is a characteristic of many stakeholders hence hindering performance. Computerization of functions and departments is lacking leading to discrepancies in accounting and delivery delays. All these would be best addressed using the Business Process Reengineering. Moreover, there exist challenges with status quo who wish to maintain their status hence hindering the capacity of the company to get new technologies and managerial skills. Most of the staff and heads of department are untrained and incompetent leading to low quality products and poor service delivery. These challenges can only be best addressed by the Kaizen approach PIPEWORK plc is a UK based company that is a market leader in the pipework sector. PIPEWORK plc is divided into three divisions namely the Drainage Division, Do-it-yourself (DIY) Division and Boilers Division. Though they are operated as independent business units, with individual balance and profit sheets that are later amalgamated, the company has recorded losses with respect to the previous year’s performances (Patterson et al 2012, p, 624). This year’s turnover was ?700m with a pre-tax profit of ?35m though it is a loss compare to last year’s which was at ?900m with a pre-tax profit of ?50m. The average age of senior management staff being 56 years implies the company lacks in new managerial skills methods in the market. Lack of a succession plan by the Head of Human Resources and Divisional directors is clear indication for lack of a vision in the company. Only two divisions have staff and management appraisal procedures which are long overdue in terms of re-evaluation. In order to have a deeper establish the context for evaluation of PIPEWORK plc, it is vital to consider the vital sections considered for its maximal performance. Drainage Division Overreliance on the olden traditional way of making clay pipes using kilns leads to wastage rates due to fractures and malformation. The fracture s and malformations are as a result of long time the clay takes in the kiln and the fire used. Though the engineers have recently introduced PVC pipes, PIPEWORK lacks the internal resources to develop brand new products. This has made the company incur extra costs to suppliers to help them develop a new plastic pipe making machine to facilitate the division create newfangled products appropriate for present day market. It is expensive to produce the PVC pipes alongside the clay ones. In as much as PIPEWORK has opened a major manufacturing plant in Germany