The reverse supply chain is the series of activities required to retrieve a used product from a customer and dispose of it properly or reuse after processing.
A reverse supply chain is the series of activities required to retrieve a used product from a customer and dispose of it properly or reuse after processing.
A system whose constituent parts includes material suppliers, production facilities, distribution services and customers linked together by the feed-forward flow of materials and feedback flow of information.
Reverse supply chain refers to the movement of goods from customer to vendor. This is the reverse of the traditional supply chain movement of goods from the vendor to the customer. Reverse logistics is the process of planning, implementing and controlling the efficient and effective inbound flow and storage of secondary goods and related information for the purpose of recovering value or proper disposal.
Supply chain management (SCM) is the broad range of activities required to plan, control and execute a product's flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible.
There are numerous causes, often in combination, which will cause these supply chain distortions to start what has become known as the “Bullwhip Effect”. Subsequently, the effect of inventory with other activities is demonstrated.
Demand generates forecasts based on sales history, currently scheduled orders, scheduled marketing activities and customer information. Ideally, demand management works collaboratively and interactively both internally across the firm’s functional components and externally with supply chain partners to develop a common and consistent forecast for each item period, location and item.
Procurement is the process that a manufacturer, a wholesaler, or retailer, buys materials services and supplies from outside suppliers to support its operation.
Comparing with purchasing from supply chain management perspective, procurement
emphasizes relationships between buyers and sellers and is in a higher, strategic level activity.
The objective of supply chain management is to provide a high-velocity flow of high quality, relevant information that will enable suppliers to provide an uninterrupted and precisely timed flow of materials to customers. However, unplanned demand oscillations, including those caused by stockouts, in the supply chain execution process create distortions which can wreak havoc up and down the supply chain.