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Lecture 12 : Reverse Logistics — Transcript

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0:01[Music]
0:22[Music]
0:25so hello dear friends welcome back to
0:27nptl online course on Logistics and
0:30Supply Chain management so uh till now
0:32we discovered about what are the various
0:35elements of uh Logistics and uh then we
0:38talked about the logistics industry and
0:41uh obviously the Indian scenario Indian
0:44industry structure and uh International
0:47industry and when we talked about
0:49e-commerce uh platform so then you saw
0:53that there is no boundary right so whole
0:56world is One Market so then we talked
0:58about uh what are different kpis key
1:01performance indicators if we talk about
1:04logistics performance right overall
1:06performance of this distribution Network
1:09and then we talked about some of the
1:11tools we can use to improve those
1:14kpis and uh how we can Benchmark the
1:17best practices in the industry and we
1:19can go further for the Improvement right
1:22now there is other aspect of uh uh this
1:25Logistics distribution Network that is
1:27reverse Logistics right this is equally
1:30important as we have seen in uh when we
1:32discussed about the industrial scenario
1:34we talked about so many different facts
1:36and figures and we talked about that the
1:39return rate is very very high which is
1:41around around 25 to 30% right in some of
1:44the cases and maybe more than that also
1:46right so this reverse supply chain is
1:50also equally important and which is we
1:52can say another parallel system like we
1:56were initially delivering the products
1:58from the raw material suppliers to the
2:00end consumer now the reverse flow will
2:02be there and it is equally important so
2:06we have to be equally efficient in the
2:08reverse supply chain as well right so
2:10challenges are huge in terms of that
2:13because uh you cannot charge anyone for
2:15this managing this reverse supply chain
2:17okay so this is additional cost but yes
2:20how you can explore this area further
2:23you can do more research on that where
2:25this reverse supply chain can be one of
2:28maybe the very efficient source of
2:31income how efficiently you will uh use
2:34your or recycle or remanufacture your uh
2:37maybe unused products or used products
2:40or maybe uh we'll talk about different
2:43scenarios how when we require this uh
2:46reverse uh supply chain right so this is
2:49also a kind of opportunity so uh under
2:53this uh session we'll try to cover uh
2:57the basic concept of reverse Logistics
2:59ICS we'll see how this is lead reverse
3:03Logistics is leading towards Green
3:05Logistics and somewhere to the
3:07sustainability uh Dimensions as well
3:09right and then we'll talk about uh
3:12reverse Logistics versus your
3:14traditional Logistics supply chain right
3:16so already I talked about the forward
3:18flow and reverse flow we need to
3:20maintain so why we it is important right
3:24we we we have seen in the previous
3:26sessions why reverse returns managing
3:28the returns is so important in in in
3:31these kind of know scenario right then
3:34we'll see key aspects and process of
3:36reverse Logistics types of product
3:39Returns what are the types of products
3:40we are handling when we are talking
3:42about the reverse supply chain and what
3:43are the factors responsible uh for
3:46reverse Logistics factors improving the
3:49efficiency of your reverse Logistics
3:51right and then we'll see the performance
3:53measures overall kpis in that case we I
3:56have included uh a couple of case
3:58studies small case studies uh how they
4:01are managing beautifully this reverse
4:03supply chain and the brand image they
4:05have developed using this reverse supply
4:07chain concept is marvelous right and not
4:09only the brand image they have added to
4:12their revenues as well right so uh we'll
4:15start with the very basic introduction
4:17of reverse uh Logistics as I mentioned
4:20is the flow is in the opposite direction
4:22right where we are handling the waste
4:24and returns so it is not only always the
4:28waste right it it can be the fresh
4:30product as well if I'm ordering
4:32something from Amazon Flipkart eBay I
4:35simply did not like that so then it is
4:37another kind of you know uh the journey
4:40will start which uh the product will
4:42take the reverse route and will be
4:44shipped back to the seller right so in
4:47that way uh that is unused product and
4:50if we'll talk about used products so
4:52then it is waste how we can handle those
4:54waste it's not only the disposal of that
4:57the waste is the ultimate altern ative
5:00right so we like try to explore what
5:02others things we can we options we have
5:05where uh actually the opportunity lies
5:08and we can you know explore those uh
5:10areas right so other terms used for
5:13reverse Logistics is retro Logistics
5:15reverse supply chain reverse Logistics
5:17flow reverse flow backward supply chain
5:19return management after market Logistics
5:22after market supply chain right these
5:24are the terms frequently we are using
5:27but yes you need to take care when we
5:29are talking about about the reverse
5:30supply chain and reverse Logistics
5:34Logistics reverse or forward Logistics
5:36takes care only about your
5:38transportation warehousing distribution
5:41but supply chain when we are talking
5:43about whether it is your forward supply
5:45chain or reverse supply chain will
5:47include all the activities within that
5:50supply chain okay starting from your raw
5:53material uh extraction your packaging
5:56manufacturing uh within manufacturing
5:59unit how you are preparing your assembly
6:01lines manufacturing lines where you are
6:04converting a raw material into finished
6:05one then final packaging is happening
6:07then marketing of those products
6:09recording the order selling the order
6:11Distributing the all those things is big
6:14picture of supply chain so Logistics is
6:16part of that all we dis we have
6:17discussed already this Logistics versus
6:20supply chain so this can be defined the
6:24waste and returns along the supply chain
6:26sometimes we are reworking on those
6:28waste if under warranty Guaranty periods
6:30we are repairing we are replacing the
6:32components and then again we are sending
6:35back to the customer or maybe we are
6:38selling back to the customer it's not
6:39only in the same Market sometimes we
6:41have secondary Market concept as well
6:44where maybe your product is not
6:46available for maybe as a fresh product
6:48for the primary market then the as a
6:51concept of maybe primary copy first copy
6:54or maybe reworked or repaired or maybe
6:57uh your refurbished product you are
7:00selling those products maybe at reduced
7:02price in the secondary Market as
7:05well so before proceeding further I'll
7:08just uh highlight the concept with some
7:12uh examples or scenario how it is
7:14happening see we have seen we have the
7:17raw material
7:18suppliers from where this distribution
7:21network is starting these raw material
7:23suppliers are
7:27supplying the product to the the uh raw
7:30material or component to the
7:31manufacturer from manufacturer we are
7:34having that distribution
7:38Network so most of the time for
7:41distribution I'm writing this term so if
7:43I'm writing this so so audience can just
7:46take care of this so distribution
7:48network is
7:50there Network usually I'm writing like
7:52this and then in
7:55that end stakeholder is your
8:00customers right so this is how the
8:04product is flowing in one direction from
8:07your starting from the your raw material
8:11suppliers ending with the consumption
8:13point right when we are talking about
8:15your uh returns right so returns now let
8:19us talk about you deliver the product
8:22final product to the customer now this
8:25can come back from the customer in
8:27different options how it can come back
8:29from the customer first is customer did
8:31not like the product and simply returned
8:35it as customer returns right this is
8:39simply this is unused product full value
8:43of the product is there but product
8:45value is there but the problem is that
8:48customer destroyed the packaging so
8:51again challenge is there okay so
8:54customer destroyed the packaging let's
8:55say I'm buying shirt so previously also
8:59Al I highlighted for packing the shirt
9:01so many components are required they are
9:03using steel pins they are using plastic
9:05pins they are using card uh papers uh
9:10they are using so so much stuff right in
9:12that just to you know uh ship that uh
9:15shirt properly to the customer right
9:17wrinkle free kind of thing or you should
9:19feel that actually you picked that shirt
9:22from the retail shop so that feeling
9:24just to ensure that feeling we are uh
9:27shipping the product with that care that
9:29you are getting that feeling right but
9:31when you obviously when customer
9:33received that product even in the first
9:35instant he did not like that product but
9:37even then he's going to try that shirt
9:40right shirt trouser whatever you ordered
9:42now while trying that obviously you will
9:45damage the packaging so those components
9:48Sometimes some customers are putting
9:50back in the packet and that is open
9:52packet when we will transport those uh
9:55things so obviously we will'll misplace
9:57so 100% packaging recovery
9:59is not cannot be ured is one big
10:02challenge right and then the returns
10:06we'll talk about how then we'll process
10:08these kind of things then returns will
10:11come under
10:13warranty or guarantee period right now
10:16warranty and guarantee period how uh
10:21this is posing a challenge sometimes if
10:24uh because most of the times what is
10:26happening if it is under warranty period
10:28so your your service partner or Your
10:31Service employee who's providing the
10:33services will visit on site will replace
10:36the components free of cost so that
10:38means those components will be coming
10:39from the your forward supply chain
10:43forward distribution Network so you will
10:45be replacing those components under
10:47warranty guarantee if it is not so so
10:49maybe then you will ship it back to the
10:51to the manufacturer maybe from this
10:54network only or maybe to the
10:56manufacturer directly that depends upon
10:58the design stru Ure what type of uh
11:01supply chain you are following the third
11:03one may be end of life
11:06product what if the product is totally
11:09consumed right and of like so any home
11:12appliances we'll take as example home
11:15appliances so you can see if I'll
11:18categorize home appliances as one
11:21industry which is not so refrigerator is
11:23different industry AC is different
11:25industry coolers different industry TV
11:28is different industry so washing
11:30machines all those different Industries
11:32are there right but let us say home
11:34appliances one industry right so you you
11:37see end of life the maybe the average
11:40age of any home appliances will range
11:43around somewhere to uh 12
11:46to 15 years right this is the average
11:49age so maybe if you are using properly
11:51or providing the services using with
11:53care it may extend to 20 years 18 to 20
11:56years if not that much care is given
11:58Maybe it will end up on maybe in the 8
12:01or 10 years as well and then depends
12:03upon the nature of the product as well
12:05right now uh uh you see if we'll talk
12:09about all these home appliances so major
12:12major components used in that are maybe
12:16for long period of time you can use if
12:18I'll talk about refrigerator if I'll
12:21talk about AC the outer container part
12:25is of plastic all the plastic components
12:27all the steel components
12:29there will be no beer and tier right
12:32very minimum beer and tier so maybe the
12:34overall life is 12 to 15 years but these
12:37components you can use for 30 years as
12:39well right so this much time period for
12:44means you have not calculated properly
12:47the age of every component which is
12:49quite obvious because this is a economic
12:51structure as well we need to understand
12:53because if I'll say this AC you can use
12:55for 100 years or 50 years so then what
12:58as service partner my uh stakeholders
13:01will do and then after then again I have
13:04to sell the same product in the market
13:06so somewhere they need to maintain that
13:09marketing strategy as well right but I'm
13:11just talking about if we are not looking
13:13for if we are concerned about the
13:15environment we are concerned about the
13:17sustainability reverse supply chain or
13:19Green Logistics then we are talking
13:21about these terms end of life how we can
13:25extend this end of
13:27life this is the concept C right now I
13:31Told You So Many steel components or
13:33plastic components you can use maybe for
13:3630 40 50 years so but the motor age is
13:40limited electronic components age may be
13:42limited so what we can do we can go for
13:45a kind of maybe modular design if any
13:49problem in one part let's say if I'm
13:51talking about TV if there is something
13:53wrong with the sound panel I'll just
13:55take out the sound panel we'll fix
13:58another sound panel it will will will
14:00work properly right so I need to figure
14:03out what are those components which are
14:06which got limited life in terms of maybe
14:0810 years 12 years or 15 years and then
14:11as a stakeholder providing the services
14:14maybe I can replace those uh Parts only
14:18which which are limited with their age
14:20and in that way I can extend the life of
14:23that particular appliances same is the
14:26case of AC if you're using AC maybe
14:28something goes wrong with the motor
14:30outside motor right then again you can
14:33replace it you know after this much of
14:35time period it will uh be there will be
14:38beer and tear and it will be uh stop
14:41stopping uh that functionality will be
14:43stopped right so in that way you can
14:47find out if there is problem with the uh
14:50your uh circuit you are using inside
14:53that board you are using inside you can
14:55simply replace that board if it is
14:57problem with the inner unit or outer
14:59unit wherever right so the uh nutshell
15:03we can conclude that the end of life uh
15:07how you are managing of your product is
15:09very very important and if I talk about
15:11a very good example of your equa guard
15:15who is not selling the
15:18products what they are selling the they
15:20are not selling the products no they are
15:22selling the services now if you'll take
15:26water purifier from Aqua guard they are
15:29giving you kind of annual it is there
15:32for uh many other uh uh home appliances
15:37but this this strategy is prominently
15:40used by equa guard and the beautifully
15:42they have leveraged on this strategy AMC
15:45annual maintenance contract they are
15:47giving maybe for one year or two year or
15:49as long as you are using that product
15:50you you have to use that right till the
15:53end of your life we are not talking
15:55about the end life of that product we
15:57are talking about end life of the
15:59customer so as long as you are there you
16:02will be using aquagard right so you will
16:04purchase AMC annual maintenance contract
16:07in that if anything goes wrong with that
16:10purifier free of cost it will be
16:12replaced it's not free of cost because
16:14already we purchased annual maintenance
16:17contract so in that
16:20case you you can use it uh without you
16:24know any hesitation or uh if something
16:27goes wrong with that you you need to
16:29replace the product so then that much
16:31waste you will be generating what you
16:33will do with those electronic components
16:35right that will be directly waste you
16:37are throwing in the environment there is
16:38no reverse supply chain right so in that
16:41case equa guard is what they are doing
16:44anything goes wrong with your purifier
16:46they will replace you free of cost as
16:48long as you are AMC under
16:51AMC you can imagine same if AC industry
16:54because every other day when there is
16:56season you can see sometimes cooling is
16:59not properly sometime you know uh water
17:03is coming out of the inner unit as well
17:05sometimes your remote is not working
17:07sometimes so many issues with the outer
17:10unit with the inner unit right so that
17:13those how because as a customer you you
17:15cannot be uh so aware about that product
17:19and technology or uh you know the
17:21components and pricing and all that so
17:23let's imagine if AC company some AC
17:26companies are there they are coming with
17:27the proposal that it's our unit we are
17:30fixing as per the requirement size
17:32whatever uh cooling requirements are
17:35there size of the room will fix uh the
17:38unit and it is completely our
17:40responsibility we'll maintain as long as
17:42you are taking our services when you
17:44will say we don't need Services we'll
17:46take it out right so because as long as
17:49you are in that particular environment
17:51you will use that AC so how you can
17:54minimize uh you know your cost of
17:57operation that is win-win situation for
17:59both suppliers also and man uh customer
18:02also because they are taking care of
18:04your services part and for manufacturer
18:07they will be looking for more
18:08sustainable technology more sustainable
18:11raw material which you can use maybe the
18:13quality of even the plastic and steel
18:16components which you can use again and
18:17again will improve because they will you
18:20they they will try to maintain it as
18:22maybe for 100 years or more than that
18:24because as long as you are my customer
18:28you are a kind of giving me Revenue
18:30every day because I'm buying your AMC's
18:33so this is the concept why this reverse
18:36Logistics is required so we'll just
18:39quickly go through some few definitions
18:41of reverse Logistics is going the wrong
18:44way on a oneway street which is quite
18:46obvious because this is wrong way but
18:49yes the the importance you can just
18:51imagine just I um spend some time on
18:55explaining why it is required then by
18:57Carter and El you see the the return
19:00Upstream movement of good or material
19:03resulting from maybe Reuse Recycling or
19:06final disposal so final disposal can
19:08also happen like we talked about here we
19:11missed if any product which you cannot
19:15use so that will go for final disposal
19:17there is a again debate on this we'll
19:20discuss separately on disposal there is
19:22nothing like that this is totally waste
19:25and it should be disposed of completely
19:27we should be able to you know get some
19:30components out of that product and maybe
19:33we can use in the next uh preparing the
19:37next product if not so can we use some
19:40part of that product as a raw material
19:44for some other industry let's say if you
19:46are using steel uh in maybe uh in your
19:50car right or maybe manufacturing
19:52Aeroplane or maybe manufacturing these
19:54kind of things where you are using steel
19:56right so now after using that car for 20
19:59years 25 years maybe now it is of no use
20:03now you want to dispose it completely
20:05right so even then that steel value you
20:08can recover maybe that raw material may
20:11not be used manufacturing another car
20:13but yes that can be used for maybe
20:16manufacturing steel roads steel sheets
20:19which you can use for roofing purposes
20:21right where maybe the safety parameter
20:24in that way is not that much you know uh
20:27important and we can still use that as
20:30we can melt that steel we can again use
20:32that steel right so this is how uh uh
20:36maybe the after recycling that material
20:40components you uh discovered uh may not
20:43be useful in the same industry but can
20:45be a potential source of raw material
20:48for some other Industries
20:51right so uh some other definitions you
20:54can see reverse Logistics Under the
20:56Umbrella of product recovery management
20:58which I talked about how you can recover
21:00the product how you can recover the
21:02value out of this if you talk about
21:04Council of logistics management they
21:06have defined this planning implementing
21:09controlling in a efficient and cost
21:12effective way the flow of raw material
21:14in process inventory finished goods and
21:17related information from point of
21:19consumption to the point of origin right
21:23in a reverse way now we talked about
21:25this structure and uh uh obviously from
21:30here we are collecting all the waste in
21:32terms of uh byproducts in terms of waste
21:36in terms of rejected material in terms
21:38of warranty in terms of end of life in
21:41terms of fresh returns so obviously as a
21:45return what you will do you will store
21:47it in some uh warehouse and then there
21:51should be some refurbishment
21:57Center where you will be recovering the
21:59value of that maybe again you will be
22:02cleaning the shirt you will be ironing
22:05the shirt you will be applying all those
22:07components to pack in a proper way
22:10primary packaging is destroyed again you
22:12will put new packet secondary packaging
22:14is destroyed again you will put new
22:16package and then labeling and then
22:18billing information also you need to
22:19provide so that it should be quickly
22:22available in your distribution Network
22:24again for reselling that
22:29for reselling that okay so this is the
22:32complete uh Network how you can use this
22:35so let's see quickly reverse Logistics
22:37versus forward Logistics like the
22:39example already I quoted from raw
22:41material it is going to manufacturer
22:43from then distribution chain then retail
22:45industry then customer is picking up so
22:48this is forward distribution Network
22:50reverse we have collection centers there
22:53is consolidation Center because if we
22:56are talking about let's say 20 to 30%
22:59returns so if we are selling 100 items
23:0330 are coming back so that amount is not
23:05so big right so how we need to
23:08consolidate this is very important thing
23:10right consolidation and sorting of the
23:13packages why sorting of the packages is
23:16required let's say when I'm going
23:18through my forward supply chain I sold
23:20today maybe one
23:22shirt through Amazon maybe one toy maybe
23:26one uh refrigerator
23:31maybe one AC maybe uh few few your
23:35grocery
23:37items and likewise so many different
23:39things are there right so these
23:42different see shirts are coming from
23:45some clothing industry toys are coming
23:47from those kind of manufacturer players
23:49refrigerator coming from higher Itachi
23:53AC coming from Itachi Samsung so many
23:56different players are there grocery
23:57items are coming from Amazon Fresh and M
24:01so many different suppliers are there
24:04right so in that way it is organized
24:06because this flow is coming from one
24:08industry all the clothing are coming
24:11from one industry maybe so many
24:12different players in that industry but
24:14shirts clo are coming from the clothing
24:17industry but when I'm interacting with
24:19the customer maybe customer 1 2 3 4 this
24:23is returning the grocery item this is
24:25returning the shirt this person is
24:27returning the shoe and maybe this person
24:30is returning some grocery item right so
24:33in the end when I'll collect it in the
24:36consolidation Center where I will ship
24:39those items right so your mixed up items
24:42are coming so then becomes important
24:44that you should have some sorting
24:47centers as well consolidation and
24:50sorting centers where you will sort
24:52industry wise right and then you will
24:54try to recover the value out of those
24:57products so this this is again very
25:00important to understand it is not that
25:02easy to set up uh as we set up the
25:05forward supply chain we can quickly set
25:07up the reverse supply chain the obvious
25:09reason is because these products are
25:13coming from different industries from
25:15the End customer right and different
25:17customers are
25:19there so let's try to address reverse
25:23Logistics versus Green Logistics
25:24obviously when we are talking about
25:26reverse Logistics we talked about
25:27product returns marketing returns scary
25:30returns whatever are coming when we are
25:32talking about Green Logistics so we are
25:35taking care of the environment while we
25:37are Distributing the product so end mile
25:39delivery we talked about using
25:41electronic Vikes right Cycles right how
25:45we can pick the customer pickup
25:46locations where we should use alternate
25:50uh resources we should not use fuel as
25:53maybe petrol or diesel which is
25:54depleting the environment right so those
25:57money and in Packaging also recyclable
25:59packaging should be used you should not
26:01use plastic how you can minimize the
26:03packaging size that Al that will take
26:06care of your Green Logistics right where
26:08we are con completely concerned about
26:11environment right sustainability is
26:13another dimension we in under
26:15sustainability we will not only take
26:18care of environment we'll take care of
26:19social aspect also and we are we'll take
26:22care of your economic aspect also
26:29all these three will take care right so
26:32reverse Logistics we are actually adding
26:35to Green Logistics and sustainability in
26:37that way but we have to be efficient but
26:39Green Logistics only takes care about
26:41your uh environment and if we'll talk
26:44about all these the concepts are working
26:47towards either we should recycle the
26:49material we should remanufacture or we
26:53should be re there should be reusable
26:55packaging right so there are concept of
26:58three hours how we can
27:00reuse how we can
27:03reduce how we can
27:05recycle reuse the same product we can
27:08reuse if it is not at the stage of end
27:11life again how we can ensure that re uh
27:15uh reduce how we can reduce uh we can
27:19reduce the usage of the product or maybe
27:22throwing rate because like I mentioned
27:24you so simply if you are you know
27:26purchasing aqua Services you will not
27:29think of throwing out your Aqua guard
27:32after 10 years 15 years as long as they
27:34are maintaining you are giving them the
27:35annual maintenance charges right so this
27:38is all about this concept so we'll just
27:41go through this uh video and we'll see
27:44how this concept of reverse Logistics is
27:47implemented in
27:50Industries yes so uh we have seen in
27:54this video that uh how many products are
27:56coming back and year and over year this
28:00number is increasing right and this now
28:02is significantly contributing towards
28:05taking the share out from your margins
28:08right so uh if will not take care about
28:10the efficient flow reverse flow of this
28:12product that may hamper uh your
28:15productivity in a longer run right so
28:17quickly we'll go through what types of
28:19products are coming in return already we
28:21discussed about the return of unused
28:24products right so we talked about if
28:26customer did not like that that size was
28:29not proper other issues you might have
28:31seen the listed reasons when you are
28:34returning your products so Amazon
28:37already listed Flipkart why you are
28:39returning right even if you are not you
28:41hardly sometime customer bother about
28:43giving that reason for that so simply
28:45you want to return that is also
28:47happening right so then commercial
28:49returns if the order is problem is with
28:52the recording the order either the wrong
28:54item was shipped or wrong order was
28:58placed right so then also you are
29:00returning in commercial returns you can
29:02talk about uh the product recalls as
29:05well right you might have seen uh maruti
29:08suuki they recalled Swift desire and
29:11Balano just because of there was some
29:13problem with the fuel filter this is not
29:17only with maruti Suzuki even you talk
29:19about Volkswagen you talk about uh
29:21Hundai Honda Chota uh even BMW which is
29:25known very well known for quality and
29:27all that but they uh they are facing
29:30sometimes issues related with the engine
29:33related with the some sometimes
29:35Volkswagen they recalled the products
29:37because they started observing that
29:39their engines are producing nitrogen
29:41dioxide right so which is harmful and
29:44then they had to recall the products
29:45sometime related to safety parameter
29:48sometime the interior AC uh capacity was
29:51not observed properly that customer is
29:53feeling uh comfortable inside the car
29:56right so many different re reasons but
29:59there are recalls of the product you you
30:01must be aware about the very uh famous
30:05recall by uh your uh Nokia so you when
30:09you were charging your batteries were
30:11blast and all those things were
30:12happening so after that Nokia was
30:14nowhere in the picture but in Indian
30:16market before that Nokia you you see
30:19after every second or third mobile was
30:21for Nokia so that was then it was uh you
30:26know overtaken by Microsoft soft for
30:28some time 2 three years then again Nokia
30:30is coming back uh with their promises
30:33but you you you can just see it's not
30:35only the end product or after use or
30:37under warranty sometimes even the
30:39manufacturer is a manufacturer is
30:41recalling the products because they uh
30:44observed some functionality related
30:46issues or maybe safety related issues
30:48then we talked about under warranty
30:50period or waste products if they are
30:52coming so you can just see some of the
30:54examples are given right and we have
30:57discussed in detail this is packaging
30:59nowhere related to your product but
31:01packaging also in some countries it has
31:04been made mandatory for the services or
31:07product suppliers uh that it is the
31:10responsibility of the supplier to carry
31:12the package uh your packaging back to
31:15your Warehouse so that again you can
31:17recycle and your packaging should be uh
31:20100% recyclable reusable we'll see how
31:23this concept of packaging has been used
31:26beautifully by your myantra so the way
31:29they have you know uh done the
31:31innovation in packaging why reverse
31:33Logistics is important first reason is
31:36government policies and leg uh
31:38legislation already I talked about in
31:40Netherland this is the responsibility to
31:43take back the product and recover the
31:45value completely right so if you are in
31:49car industry like I told I talked about
31:51this you have to take that car back
31:54after usage and then maybe you have to
31:56ensure the recovery of the material from
31:59that car simply you cannot throw it in
32:01the outside environment if you talk
32:04about Germany so packaging ordinance
32:06they have passed and you have to collect
32:08under that ordinance you have to collect
32:10all the sales packaging material right
32:12so these kind of uh things are there
32:15that's why reverse Logistics is
32:16important if you take care of this
32:18economic consideration it's not that
32:21this this is initial investment is there
32:23when you set up your reverse Logistics
32:26but uh this is misconception then if you
32:28try to you know uh invest so much into
32:31your byproducts into your Bas handling
32:34your base so uh then you may lose your
32:37focus on the main product mainstream no
32:39it's not like that because handling
32:42byproducts if you are Outsourcing
32:44someone else is doing on your behalf
32:46he's also charging some money for that
32:48so why don't you set up your network and
32:50try to extract the maximum value out of
32:53that because this is a kind of industry
32:55in many countries if you are recovering
32:57some value out of the scrap so uh uh
33:01very relaxed tax structure is there in
33:03that way it is very very strategic move
33:06and it has been for many of the
33:07organization they are doing this
33:09business and now after uh recycling
33:13remanufacturing or refurbishment they
33:15are generating revenues out of that
33:17right and because handling cost this
33:20waste handling cost and uh disposal cost
33:23is also increasing so why to dispose it
33:25you are spending energy cost time on
33:29burning something why don't we use that
33:32product either as raw material for
33:33something else or if we we have no other
33:36option other than burning that part
33:38component then let us use that energy
33:41coming out of after burning we can use
33:44that energy right in we can convert that
33:47energy into electricity and we can use
33:49that electricity so uh if you talk about
33:52uh some cement players who are uh into
33:55cement industry I have seen AC
33:58especially ACC plant what they are doing
34:00in the local community they have
34:02developed their reverse Logistics
34:04Network right they're collecting the
34:06waste of local community as a part of
34:08their CSR they're adding into CSR as
34:10well just they're collecting the waste
34:12they are burning that waste to produce
34:15energy and this is how they are running
34:17their plants on that energy so their
34:19energy consumption also they have
34:20reduced and in that way they are taking
34:22care of the environment as well if you
34:25talk about environmental consideration
34:27environmental legislation uh now
34:30policies are coming because government
34:32also regulatory bodies are also after
34:34the organization that you have to be you
34:36know a little more conscious about
34:38environment how much you are depleting
34:40your activities are depleting so that
34:42way you need to control the carbon
34:44emission so and can be used as marketing
34:46tool that uh you are green product you
34:50are green supplier you are green
34:51manufacturer so that product uh
34:54customers will also feel you know
34:55connected with that and somehow if will
34:57use that product we are adding into
35:00sustainability or we are somehow we are
35:02not depleting the environment and uh
35:05shift towards buying Services instead of
35:07product like I told you Aqua guard right
35:10in if if AC in some player will come
35:12with these kind of services so obviously
35:15if the pricing policy is like that which
35:17is a kind of win-win situation for both
35:19the players so easily we can you know
35:22get rid of this headache of maintaining
35:24the AC's right and uh how what we'll do
35:27with the end of life there will be no
35:29end of life of the product right and we
35:31can consume it for longer period of time
35:34only thing we need to uh either replace
35:37those minimum aged components or we need
35:40to find the alternative uh material
35:42which we can use and we'll use will uh
35:45you know uh uh elongate that uh of that
35:49material right so another example uh of
35:53effective Waste Management so if you
35:55talk about electronic industry this is
35:57is something uh now we are using more
36:00use and throw kind of uh uh uh
36:04appliances right if you see earlier the
36:07TV was size was quite big right now it
36:10is coming like flat screen mobile
36:12screens are very flat right in that way
36:14what is the big challenge challenge is
36:16that now you cannot repair those
36:18components so what we are coming with we
36:20are coming with the modular design we
36:23are fixing the modules in that let's say
36:26this is a picture control panel will be
36:29here sound control panel will be here
36:32some other maybe quality control panel
36:34will be here signal receiving will be
36:37here or transmitting or receiving will
36:39be here let's say if something goes
36:42wrong with the picture tube right or
36:44maybe picture panel we'll take it out
36:46we'll fix another panel into that right
36:49so repair concept has gone because the
36:52uh very complex complicated integrated
36:55circuit we are using we are millions
36:57trillions of components are embedded on
36:59very small chip right so uh repairing
37:03those things is a very big question so
37:05and then you see 80% of the mobiles are
37:08being replaced every two years so our
37:11generation is consuming in that way
37:1380% you can imagine there maybe 100
37:16crores in mobile users are there so 80
37:20crores are coming after 2 years back
37:22right as waste so what are the sources
37:25uh municipality collection point Point
37:27are there electronic industry waste they
37:29are producing retailers are producing
37:31recycling sector in India or other
37:33developing nations we have inmer
37:35recycling sector right they are
37:37recycling the products they are
37:38collecting garbage from here and there
37:40and then they are recycling as long as
37:43this is not you know dangerous uh uh
37:47product right or waste you can recycle
37:50is okay but if some dangerous like
37:52radioactive elements are involved or
37:54maybe uh some infectious waste is there
37:57and sometimes maybe it is plastic coming
38:00from let's take the example plastic
38:03coming from hospital so in hospital you
38:05are using syringes so those plastic
38:07syringes if directly you are recycling
38:10without any chemical disinfection so
38:13that is another challenge so this
38:15informal recycling sector is there which
38:17is also a big challenge right so um
38:20we'll continue this discussion on
38:21reverse Logistics in the next session as
38:24well so for time being this content has
38:27been prepared from these references
38:29thank you very much

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