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Reverse Logistics and Green Marketing
Transcript of Reverse Logistics and Green Marketing
Consumer Behavior and RL
Reverse Logistics Model
Outsourcing RL Services
Conclusion Reverse Logistics(RL) "The system within the supply chain that addresses products returns and its future as a sellable product, raw material source or in the worse case scenario, rubbish." Consumer Behavior and returns 1 - Internal need is identified
2 - Retail and brand are chosen
3 - Purchase is made
4 - Internal need is fulfilled
5 - Customer return faulty product How would you feel if you discovered the product you bought is faulty? Reverse Logistics Model 1 - Reuse 2 - Repair 3 - Remanufacture 4 - Recycle Remanufacture Reuse Costumers bring products back due to several reasons, most of the cases the product is put back in the sale. Repair Products that are able to be repaired tend to return to the buyer, if the buyer have requested a refund the product will be resold. 2 Products that are not in a re-sellable state may undergo remanufacturing in order to refurbish its quality as a new product RL Model (Cont.) Recycle Parts which are not able to be jointed back through the assembly process are most likely be disposed, causing serious damage to the environment Integrating Green Marketing into the Reverse Logistics Model is a way for companies to deal with their own scraps in a way that will:
protect the environment
generate good publicity
to generate money A better approach.. Hove you ever experienced returning a product? 1 3 Green Marketing An example to follow... Coca-cola has find out a way to reutilize its returning materials in an innovative way, all used plastic bottles are melted down and turned into thread, this thread is then reused in the manufacturing of sports clothes. Class discussion How can manufactures avoid faulty products to reach the end consumer? What other goods could be made out of products scraps? Do you know any other company who is practicing Green Marketing in regards to re-utilizing their products? How can companies make money out of their returned products? What can companies learn from practicing R.L.? Conclusion The supply chain does not end when the product reach the final consumer.
Companies can save money by using its returned products parts.
Environment friendly consumers are happy to buy recycled products.
Reverse Logistics should be added to retail business practices.
By chosing to re-use product parts that would end up in landfills, businesses are able to gain good brand publicity, is able to protect the enviroment, as also have an oportunity to make extra money. Source Kleber, R. (2006) Dynamic Inventory Management in Reverse Logistics. New York : Springer.Chan, P., Kamkatwong, S., & Liang, K. (2010). Green strategy and green marketing.International Journal of Strategic Management, 10 (1), 76.Fleischmann M., Krikke R., Dekker R., et al. (2000). A characterization of logistics networks for product recovery. Omega, 28(6). 653–666.Shaw, R. and Stone, M. (1988). Competitive Superiority Through Database Marketing. Long Range Planning, 21, 24 - 40.Wright, Robert E; Richey, R Glenn; Tokman, Mert; Palmer, John C. (2011). Recycling and Reverse Logistics. The Journal of Applied Business and Economics, 12 (5), 9-20.Halldorsson, Arni Supply Management; Jan 31, 2008; 13, 3; ProQuest Central pg. 26Logistics New Zealand. 2010. Reverse Logistics as a Key component in the supply chain. [Online]. Available: http://www.logisticsnewzealand.co.nz/articles/reverse-logistics-a-key-component-in-the-supply-chain [Accessed 8 September 2012].Wikipedia. 2012. Reversed Logistics [Online]. Available:http://en.wikipedia.org/wiki/Reverse_logistics [Accessed 8 September 2012]. 4 1 2 3 4