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Reverse Logistics: Backward Practices that Matter
American Productivity & Quality Center (APQC), Aug 2007, Pages: 118
Overview of Findings:
The study team identified 12 overarching insights and findings from the best-practice partners. The approaches taken by the best-practice partners provide many insights into how their organizations communicate the importance of reverse logistics throughout their enterprises, ensure senior management support for reverse logistics initiatives, work with internal and external stakeholders to implement their strategies, and continuously improve to achieve sustainable results. Greater detail is available in the report chapters that follow and in the best-practice partner case studies presented at the end of this report.
Chapter 1: Reverse Logistics Strategy Design
1. Awareness of the importance of reverse logistics must be raised to a high level in the organization.
2. A reverse logistics effort must be championed by senior management and supported by cross-functional teams.
3. Reason codes should be used to identify and solve problems that cause returns.
4. A disposition strategy should be an integral part of the reverse logistics strategy.
Chapter 2: Establishing a Physical Reverse Channel and Information Flow
5. Understanding cost is the primary prerequisite to effectively assessing a reverse channel.
6. Someone must have ultimate accountability for returns and returns policy.
7. Education and collaborative practices between supply chain partners work.
Chapter 3: Enabling Processes and Operating Systems
8. Returns information should be visible and traceable throughout the reverse channel.
9. Supply chain partners integrate reverse logistics systems and processes to support collaborative returns management initiatives.
10. A focus on process (instead of silo activities) ensures that desired reverse practices are executed successfully.
Chapter 4: Measurement, Results, and Continuous Improvement
11. Rigorous, targeted, and visible key performance indicators allow for optimized reverse logistics performance.
12. The reverse logistics effort must strive for continuous, sustainable improvement
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