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Reverse Logistics: Backward Practices that Matter
American Productivity & Quality Center (APQC), Aug 2007, Pages: 118
The purpose of this study was to learn how leading-edge organizations maximize value recovery by implementing responsive, cost-effective, and efficient channels for the backward flow of returns. The focus included investigating how successful enterprises structure their reverse logistics programs and examining how data obtained through well-managed reverse supply chains can be used to improve products, services, and customer interactions. By looking at emerging best-practice organizations, the study aimed to identify ways to design, gain stakeholder support for, and implement reverse logistics strategies that improve profitability and lead to innovative customer retention initiatives.
The study scope areas include:
1. Designing a service-oriented reverse logistics and return disposition strategy that minimizes cost and liability but maximizes reverse velocity, profitability, asset value recovery, and customer loyalty 2. Establishing a physical reverse channel and information flow to support the strategy (including standardized processes and procedures for minimizing the causes of returns and facilitating the efficient physical flow of planned returns from customer to final disposition) 3. Assessing information systems solutions and operations systems solutions that enable the reverse logistics strategy 4. Measuring the success of the reverse logistics strategy and providing for its continuous improvement The organizations selected for deep, detailed study through structured data collection and site visits (aka “partners”) demonstrate innovative performance in one or more of the study focus areas. The goal of the project was to examine organizations that excel in one or more aspects of the scope and to identify the best practices from all the researched organizations. To achieve this goal, our study team selected potential best-practice partners that had demonstrated excellence and a history of success in the scope areas. Project sponsors then formed the final list of partners by choosing from among the candidates.
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