Supply Chain Analysis Reveals An Evolution Of Reverse Logistics

There is so much competition that margins are thinly reduced putting a great strain

on supply chain management that, if not successful, can have drastic impact on the bottom line. Organizations need to have the ability to compare product value in an intelligent fashion analyzing changes relating to repair and/or refurbishment costs, spare parts pricing, resale value as well as if the overall demand for this product is profitable. Additionally, such considerations as flexibility and scalability are needed to allow sales to either outmaneuver or eliminate any competition.

It Always Comes Down to Applied Darwinism

Supply chain analysis also reveals that only the fittest will survive. This involves successful integration of supply chain logistics into any goods-for-sale oriented enterprise or possible extinction waits. The dinosaurs couldn't outlast evolution. This is because their feeble constitutions could not process the necessary data to adapt. Today, business evolution is driven by technology. When a business adapts the ability to grab hold of, integrate and use data analysis intelligently, it's almost as life-changing as was the invention of the wheel. Using technology to accomplish supply chain analysis is what will separate companies that rill successfully down the road from ones who still must leg it out.

More Emphasis on Reverse Logistics

Reverse logistics - the entire process in which customers return a purchased product - once only concerned the ability allowing customers to return defective or unwanted products. There were many roadblocks placed in the process including such things as the need for a receipt and possibly having the product returned in an undamaged, original packaging. Returning a product was considered a courtesy afforded to a customer. However, soon reverse logistics took upon a competitive air that actually became a dot on a laundry list of reasons compelling decision making about brand choice. Any company not supporting a consumer return policy would quickly suffer disadvantages that companies that did support would not experience. In order to survive, these companies had to evolve to the point adopting the very same return policy courtesies or lose their customer base to competitors.

Same Concessions Travel up the Supply Chain

Soon retail outlets were seeking these very concessions from distributors and manufacturers. The practice rotating fresh stock replacing older merchandise soon became the norm wherein retailers placed the onus of responsibility for non-selling merchandise firmly on suppliers. This did, however, compel additional data collection since attempts became initiated to "solve" the problem of excessive returns. Was it the wrong color? Size? Shape? Collected data could cut down on returns by manufacturing more of this quality and less of that. This became necessary specifically for all products not defective but simply returned due to consumer remorse.

Successful data interpretation and use has an effect upon service revealed by supply chain analysis. So, developing effective reverse logistics compels a company to provide services the completion does not. Companies that can do this will put the competition out of business or the best scenario evolution has them coming to work for you.

by: Neville Jefferson

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