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Lecture 13 : Reverse Logistics (Contd...) — Transcript

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0:01[Music]
0:22[Music]
0:25so hello dear friends welcome back to
0:26nptl online course on uh Logistics and
0:30fly chain management I'm Dr vikas takur
0:32assistant professor Department of
0:34humanities and social sciences IIT kakur
0:36so in the last session we started
0:38discussion on reverse Logistics and we
0:40talked about uh what are the key aspects
0:43of reverse Logistics why it is required
0:46and uh what are the factors which are
0:49forcing you know to implement this uh uh
0:51reverse Logistics uh Network so uh we'll
0:55continue discussion in this session as
0:57well and uh this part already we have
1:00covered so in this session we'll try to
1:03see uh what are the key aspects in
1:05Reverse Logistics the steps process in
1:09uh involved in Reverse Logistics what
1:11are the factors if you want to be
1:13successful in your reverse Logistics
1:15Network and we'll see some of the kpis
1:18performance indicators and how we can
1:20manage those performance indicators and
1:22then we'll end up this discussion on
1:24reverse Logistics by uh discussing some
1:27cases so uh some key aspects product
1:31returns right already we talked about
1:33that product can return either because
1:36of defects damages Overstock if your
1:40retail partner is overstocking the
1:42product even then it can come back to
1:44you simply customer is dissatisfied with
1:47the product even then it will come back
1:48to you now it is your distribution
1:51Network how you will receive it you will
1:54inspect it if it is kind of unused
1:57product then you need to inspect that
1:59whether packaging new packaging is
2:01required the new you know uh that I told
2:05you that cleaning is required earning is
2:07required depending upon the product
2:08nature if it is not so if it is used
2:11product under warranty it has come back
2:14to you then you need to inspect how much
2:17value is left in that product and if it
2:20is at the end of life then again you
2:22need to identify what are those
2:24components in that Complete product
2:27which you can refurbish or re reuse or
2:30recycle those components and then it
2:32will come out maybe around 15 to 20%
2:35part which you cannot use anywhere maybe
2:38then you will go for disposal if that is
2:41the ultimate uh option you have so then
2:44if you are incinerating the waste right
2:48so how that energy generated after
2:51incineration how you can use that energy
2:54uh to convert that energy into
2:56electricity or some other form so this
2:58is something that when very basic
3:00fundamental concept of the nature is
3:02that energy cannot be destroyed cannot
3:04be created so that means why you are
3:07wasting then that energy so how you can
3:10use one form of energy to another form
3:12is kind of example then the other aspect
3:16is remanufacturing refurbishment you'll
3:18take out some parts using those parts
3:21into some other uh product or again
3:24maybe you can repair clean them
3:26reassemble them so these are the uh
3:28processes under your remanufacturing or
3:31refurbishment so then Recycling and
3:34Disposal so recycling packaging material
3:37again you will shred that pack packaging
3:39material again you will come back with
3:41the new packaging material let's say if
3:42it is plastic component again you can
3:44melt that plastic convert into plastic
3:46grain and then can be used that grain
3:50can be used to you know to give that
3:53plastic in uh new shape so that new
3:55shape can be come into just onoff switch
3:59or can can be uh used as a casing of
4:02your uh your uh mobile phone casing of
4:07your uh these remote controls your
4:10electrical components where you are
4:12using those plastic material right so
4:14this is how you can recycle that
4:16disposal final disposal I told you how
4:19if hazardous items are there and you
4:21need to dispose of those items so that
4:23should be done carefully because there
4:26are guidelines for how you can handle
4:29those uh hazardous items right if uh
4:32this uh if those are infectious kind of
4:35waste so you need to go for disinfection
4:38kind of process then warranty and
4:41service management if you are handling
4:43the warranty you need to repair you need
4:45to replace the components and what you
4:47will do with those replaced components
4:49used components or which are destroyed
4:52right so that that also you need to
4:54manage so this is under warranty if it
4:57is coming already we discussed about
4:59this
5:00asset recovery and remarketing I told
5:03you how much we can recover the value
5:05out of that maybe the shoe material
5:07cannot be used again making another shoe
5:10but it can be used somewhere else if it
5:12is not possible can we collect all these
5:16points plastic or these kind of material
5:18and we can use for Road medling purpose
5:21can be go for a kind of maybe if it is
5:24composite table so can be used as
5:26compost we can use for maybe uh those
5:29material whatever we the kitchen waste
5:32is coming we can use as maybe fertilizer
5:35so this is how the asset you can recover
5:38out of the wastage right so and
5:41again it should be ready for sale should
5:44be ready for remarketing not in the same
5:47market so maybe then in the secondary
5:49Market as I discussed so then we can go
5:52for that supply chain optimization like
5:55we uh try to optimize the forward flow
5:59of your supply chain activity same way
6:02we can optimize this the reverse flow
6:05also we should have the proper
6:07information that visibility uh
6:09traceability should be there where we
6:11are producing the product what kind of
6:13waste we are generating how much value
6:15is left in that product so we have
6:17softwares quickly can analyze that this
6:20much value is left over in that
6:22particular wte and we can use that so
6:24that also we can ensure the efficiency
6:27in collection center we can ensure the
6:29efficiency
6:30consolidation of the ra this uh waste we
6:34can do that because if only 20% items
6:37are coming back how you'll ensure the
6:40economies of scale when you are I told
6:42you you are selling 100 items only 20
6:44items are coming back so then can you
6:47combine collaborate with some other
6:49partner and then utilize the full
6:51capacity of the container you are
6:54utilizing to uh you know transport back
6:57to the uh seller right so these kind of
7:00things optimization in Warehouse also
7:02you can optimize how much inventory you
7:04are keeping that inventory how quickly
7:06you are rotating the stock again to the
7:09market after collecting that product
7:12from the customer so these all things
7:14should be there when you are talking
7:15about supply chain op optimization so
7:17we'll see one video how this uh end of
7:21life how we can deal with the product
7:23there is one small video video link you
7:25can just go through this video and you
7:27can relate the concept more CL closely
7:29with this right so uh dear students I'm
7:33again I'm assuming that that whenever
7:35I'm uh refering these video links you
7:38are going through because sometimes I'm
7:40including examples from there so you can
7:42refer these videos okay so just you go
7:45through this link and we'll uh continue
7:47the discussion right so how can build
7:52this house of reverse
7:54Logistics first thing is this uh uh
7:57reason for uh uh
8:00this reverse Logistics should be very
8:01clear why you are doing this and why
8:04your industry uh need that reverse
8:06Logistics right so uh either uh it is
8:10pressure from the regulatory Authority
8:12or your social responsibility under or
8:15maybe corporate uh you are building your
8:18image in that way environmental concern
8:20or maybe sometimes the customer
8:21awareness right so if you'll go through
8:23this uh uh steps these steps so first is
8:27your reversal Logistics input right so
8:30this is the used part material you are
8:32collecting right from the custo uh from
8:34the customers and then you need to uh
8:37forecast properly so that you can design
8:39your uh distribution network capacity uh
8:43consolidation centers capacity in that
8:45way so that you can CER the needs of the
8:48uh customer right from where the returns
8:50are coming then process if you talk
8:52about so uh maybe disassembly uh uh is
8:56one of the very important concept where
8:58you need to to dis assemble the products
9:01and uh then you need to find out the uh
9:04products which are having certain value
9:06left in those components and again you
9:08can reuse those things Inventory
9:10management supply chain repair
9:12refurbishment re manufacturing recycling
9:15then all these things will be there
9:18processes activities will be there as
9:19part of reverse Logistics process
9:22reverse Logistics structure if you talk
9:24about so you need to develop again the
9:27complete structure reverse supply chain
9:29we will set up your location uh and then
9:33inspection consolidation Center you need
9:35to integrate your manufacturing uh units
9:38as well who will be recovering the value
9:41of those products and then again
9:43assembling the products uh in the final
9:45one right so again we'll ensure the
9:47remanufacturing uh of those products so
9:50this is the uh reverse Logistics
9:52structure reverse Logistics output so
9:55you need to price those after
9:57remanufacturing again and and uh you
10:00need to set up the relationship with the
10:02customer that is the uh reverse
10:04Logistics output now the thing here is
10:07when you are completing this uh complete
10:10system as a customer if I'll see if I'll
10:14say that whatever you are using is of
10:17made up of maybe recyclable material
10:19that depends upon the product if it is
10:21kind of packaging maybe you will feel
10:23happy okay this packaging is again
10:25recyclable and then I'm not depleting
10:28the environment so okay I'll welcome
10:30this step that they are because
10:32packaging anyhow is carrying the product
10:33from one end to other end after that
10:35once it is done there is of no use right
10:39so then how if they are 100% they are
10:41recycling that so this is kind of
10:43initiative we'll welcome as customer but
10:46if I'll say this shirt you are buying is
10:50of recycled uh material right so then
10:54you will be maybe little hesitant in
10:56that way if I'm paying for new shirt why
10:59I should bear the old one right old
11:01stuff but then you need to understand
11:03the technicality of this how this is
11:06happening how they are recycling it how
11:08they are making it a new fabric right
11:10it's not like that but still there is uh
11:14this perception is there in the mind of
11:16the customer that this is used product
11:19or this is repaired product this is
11:21remanufactured product right so this
11:23these things are there which are
11:25challenging right as marketing team you
11:28need to overcome these challenges and
11:30somewhere sometimes what we are doing we
11:33are selling those products maybe at
11:35lower cost in the secondary market and
11:37uh uh we are saying that the Fresh
11:40Products which are coming directly from
11:42the if you are using directly your uh uh
11:46if you are talking about steel it is
11:47coming from the or so then then you'll
11:50say directly it is coming from there it
11:51is fresh steel so you are not
11:53compromising with the quality
11:55right so these are the reverse Logistics
11:57steps uh first you will get the return
12:01of the goods at the gatekeeping it will
12:03be checked right and then collection
12:05will be done after that sorting will
12:07happen into different different
12:08categories right then after that
12:10treatment will happen maybe in terms of
12:12remanufacturability maybe in terms of
12:15recycling in terms of reuse maybe in
12:18terms of repair and if not all those
12:21things are possible then maybe you will
12:24finally go for disposal that you cannot
12:27recover the value and then you will go
12:29for for disposal right so you'll throw
12:31that material in the Disposal system so
12:34we'll go through quickly these steps see
12:37gatekeeping how this is
12:39happening so uh your customer will
12:42communicate with the company if return
12:45is authorized so that
12:47means uh you need to compensate right uh
12:51first you need to ask whether you need
12:53to authorize that or not if no then you
12:55can directly compensate if yes then you
12:58will do the verif you will check the
13:00product whether customer has not damaged
13:01it packaging is there or seal is not
13:04broken kind of things you you have
13:06different checks depending upon the
13:08product right so then if it again it is
13:11no you will send back that to the
13:12customer you will not accept the return
13:14if it is yes return is accepted so
13:16obviously that now you identified that
13:19the fault was uh the uh career partner
13:23or maybe the manufacturer or whosoever
13:25but it is your fault your supply chain
13:27fault right so then you will go for for
13:29compensation and under either you will
13:32give the customer new product or you
13:35will return the money so in that way you
13:37will be sharing the information whether
13:38you are returning the money or you are
13:40giving the new product in the end you
13:42will collect the old one which is
13:44destroyed right so after collecting the
13:48next stage is collection so now you will
13:50collect how you will collect whose
13:53responsibility either company will
13:55collect directly or third party will
13:57collect or it is the responsibility of
13:58the customer customer sometimes after
14:01the end use of the product some
14:03companies are contacting with the
14:04customers that if you'll deposit that
14:06back to the company you will get these
14:09this coupon you'll get this much off in
14:12the next purchase right so this is again
14:14very good idea if let's say uh we talked
14:17about 20 to 25% minimum the returns are
14:20coming from Amazon we are selling from
14:23eBay we are selling from Flipkart we are
14:25setting right so let's say we one
14:29strategy I'll ask my customer
14:32if because the product uh return is 25%
14:37if I'll say any product uh any customer
14:40is maintaining the return rate less than
14:435% uh so that means I'll give that
14:47customer maybe free
14:49delivery for maybe next 10 deliveries or
14:53maybe free delivery for one year or
14:55maybe six months right depending upon
14:58Cal calculating the cost benefit
15:01analysis and all that but even then if
15:03you see 20 to 25% items are coming back
15:07that is also a cost to the company so if
15:09we can reduce that in that way we can
15:12avoid that wastage as well we can
15:14maintain the good relationship with the
15:16sellers also because if seller is
15:17selling the product after 10 days he is
15:20getting back so then that is also you
15:22know kind of uh business relationship
15:25will be hampered so how they can come
15:27with that policy because if you take
15:29Amazon Prime membership that will also
15:32cost you around somewhere 1,500 per year
15:34right so let us give them free uh Prime
15:37Membership so if they are not returning
15:40more than 2% give them free Prime
15:42Membership so that means now 22 to 23%
15:46you have reduced the returns so this is
15:49one policy which can be considered for
15:51this and depending upon who is
15:54collecting either company is collecting
15:55third party is collecting then you will
15:57ship that product and uh again you will
16:00be checking the product right so uh then
16:03exchange will be done if the product is
16:05damaged and it is not the responsibility
16:08of the customer and then you will
16:10transport that the defected product to
16:13the nearest service point or maybe
16:15consolidation Center where the Sorting
16:17will happen so next step is
16:19sorting so this is one small case study
16:23which I was talking about Canon has done
16:25this beautifully what they are doing
16:27just to collect the cartridge after
16:29usage they are giving the prepaid
16:32shipping coupons to their customers now
16:35customer need not to spend on that and
16:37they are also feeling encouraged that if
16:40I'm getting the free coupons and I no
16:43one is going career partner is not going
16:45to charge anything let us take this
16:47responsibility at least and we'll give
16:50uh the uh cartridge after use will
16:53return back or maybe if they want more
16:55loyal customer they can say on the next
16:58cartridge if you purchase from Canon
17:00will be given 5% off or 10% off in that
17:03way you will maintain the healthy
17:04relationship and you will ensure that
17:07customer will again and again and again
17:09will buy your product right and this
17:11they have done in 24 countries right so
17:15for complete case you can go through
17:16this Source right and uh search how they
17:19have done this right so either they are
17:22doing this by their logistic Partners
17:24Career Services or they are uh their
17:27customers are directly shipping Shing
17:29the uh after using the cartridge they
17:32are directly shipping to Canon right
17:35then the next step is sorting after
17:38getting the returns you need to sort all
17:40those Returns on different conveyor
17:42belts right so like I I have shown you
17:45one video where watch was also there in
17:48that you know big packet there was
17:52t-shirts undergarments so many things
17:54toys were there appliances were there
17:57right small appliances were were there
17:59books were there you are getting this
18:02segregated kind of products from
18:04everywhere from every customer grocery
18:06items are also sometimes returned right
18:09so that policy allows so you will re
18:12receive that return verify again if you
18:15are accepting that that means you will
18:17return you will compensate the customer
18:19in terms of either you will return the
18:21money or you will uh replace the product
18:24if that is done after that you will do
18:26the Sorting consolidate that product and
18:28transfer to the treatment center now
18:31clothes collected will be sent to the
18:33clothing Treatment Center groceries
18:36again will be stacked in your grocery
18:39warehouse books will be stored in your
18:41books Warehouse right any cold storage
18:44items are there usually we are on
18:46perishable item Cold Storage items there
18:48is no return policy right usually we
18:50don't find return policy okay so this is
18:54the step of sorting then processing now
18:58this is in three
19:00stages we uh uh they choose from a list
19:03of processing activities what kind of
19:05processing you can do how that is
19:07defined depending upon the uh you know
19:10what is the age of that product you
19:12collected what is the condition
19:14characteristics nature and then sale
19:17possibility if you are doing everything
19:19remanufacturing re fishing and then
19:22coming up with the new packaging even
19:24then you are not able to sell in the
19:25same market right so then it is a kind
19:28of E economic burden on your uh company
19:31right so uh those three dimension of
19:34sustainability you need to somewhere
19:36handle and in the end treatment will be
19:38in terms of either you will repack that
19:41repair that disassemble that again
19:43assemble that reconfiguring uh then
19:46again remanufacturing updating upgrading
19:48or Recycling and this is another very
19:51good concept is donating if the value is
19:53there and you feel that this can be of
19:56any use for any other thing so that can
19:58be donated secondary markets are there
20:01as I told you instead of you know half
20:03used item directly you know uh disposing
20:07them still very good option is can be uh
20:10you know uh use those items in the
20:13secondary markets with a lower price or
20:16maybe we can add some value in that and
20:19then we can sell those items at a
20:21reduced cost finally is the Disposal
20:24system right if presence of hazardous
20:26material I told you you need to treat it
20:29as chemical dis inspection process or
20:32maybe different treatment options are
20:34there either this is very common where
20:37incineration is done where we used to
20:40treat at uh 1,000° C or maybe sometimes
20:44more than 1200° C we treat the waste we
20:48burn the waste actually at very high
20:50temperature and when we are burning that
20:52smoke is coming out of that right then
20:55Ash is also coming if it is hazardous
20:57this Ash will be Hazard us right how we
21:00are dealing with that Ash right so
21:03sometimes that Ash can be used as
21:05fertilizer as well or if it is not then
21:07you have to go for deep bu right so uh
21:11that is also land filling kind of thing
21:13you need to do right so if smoke is
21:16coming you need to pass that smoke uh
21:18through the water so that those harmful
21:22uh element should not go in the air this
21:24kind of you know uh in disposal you need
21:26to take care why I am highlighting these
21:28points because this all when you'll
21:30ensure all these things this will carry
21:33cost so why we are going for
21:35incineration other option is microwaving
21:38other option is autoclaving why we are
21:40going for these all options are for
21:43treating your waste either you go for
21:46incineration micro babing or autoclaving
21:49so there you are disposing of your Bast
21:51so this carries certain cost why don't
21:54we reduce the Disposal system there
21:56should be minimum requirement for
21:58disposing of the item and we should be
22:00able to recover the uh this and when we
22:03are we have decided that there is no
22:05alternate we can use that heat energy
22:08coming out of that like now you might
22:11have seen very beautiful concept hybrid
22:13engines are coming right in maruti also
22:16if you see uh Grand bitara is coming
22:18with Hybrid engine they are promising
22:20the fuel mileage somewhere around 30 km
22:23per liter can you imagine from 15 km
22:27they are promising 20 25 30 35 km per
22:31the how they are doing this because this
22:32is now Hybrid engine you will run on
22:35fuel also petrol or diesel and then
22:38battery operat and these batteries are
22:40not charged by any charging station so
22:42that limitation is also gone that you
22:44need charging stations for electrical
22:47Vehicles so now what is happening when
22:50the vehicle is running on fuel petrol or
22:52diesel the wheels are moving those that
22:55kinetic energy they are converting into
22:57electrical energy which which is used to
22:59charge the battery and when you are
23:01maintaining that speed of maybe less
23:03than 60 km/ hour you can use that kind
23:06uh uh electricity that electrical energy
23:09to run your vehicle so this is how the
23:12efficiency has increased
23:14right so we'll see just factors for
23:17successful reverse Logistics these are
23:20some of the factors we'll quickly go
23:21through visibility transparency already
23:24I talked about you need to track the
23:26products and need to understand the
23:29condition how much value you can recover
23:31out of that right and in that you need
23:33to identify the bottlenecks delays or
23:36areas of improvement maybe sometimes it
23:38is lacking we are lacking with the
23:41proper collaboration with the customer
23:42where we are not able to collect the
23:44product after use so we need to tap all
23:47the stakeholders in that process and
23:49then efficient return management we need
23:51to
23:52ensure streamlining all the workflow
23:55right and we should be clear with the
23:57return policies as as well okay so once
23:59it is returned how you can again quickly
24:03place that order for on your shelf
24:05selling shelf and it is available for
24:08the next customer so that will show how
24:10efficiently you are doing it product
24:12recovery and disposition maximum
24:15recovery should be there in terms of
24:17either you
24:18are uh completely uh recycling the whole
24:22product or you are using some components
24:25of that product right that in that way
24:27it should be maximized and Disposal
24:29should be minimum to the end like
24:31incineration kind of thing and if you
24:34are going for disposal how we can use
24:36that disposal process also for
24:38generating the energy and storing it for
24:40some other purpose so to ensure
24:43efficient reverse Logistics tracking
24:46feasibility so collaboration with all
24:48the partners suppliers manufacturer
24:50retailers and service providers should
24:52be there if you are promoting yourself
24:54as green
24:56manufacturer and you your customer are
24:59visiting your retail shop and your
25:00retail person is saying that okay I'll
25:02not accept this where I'll keep this
25:04damaged product I don't have that much
25:06space that means your strategic Alliance
25:09is not good with that retailer right so
25:12why retailer should do that you should
25:14give enough reasons to retailer to you
25:16know so that means you need to maintain
25:19the collaboration that industry
25:21relationship with your complete
25:22stakeholders all the stakeholders should
25:24be there only then the smoother
25:26coordination and execution of these
25:28reverse Logistics activities will
25:32happen Network design is also important
25:35flow of return products material and
25:37information so uh inform we talked about
25:40the flow of product right the
25:42information is equally important like we
25:44have now some types of software which
25:47can analyze the end product value and
25:50life left in that some of the components
25:53quickly we can analyze and we can share
25:55the information with the supply chain
25:57partner that the out of this product
25:59these many components we can recycle and
26:02in that way we can minimize the lead
26:04time and the processing time for
26:07collection time as well right it should
26:09not be for longer period of time with
26:11the customer how quickly you can
26:13efficiently you can pick the product
26:15right and then technology integration
26:17should be there data analytics when you
26:19are tracking the system so obviously uh
26:23you can uh predict what is going to be
26:26the demand for return what is going to
26:28be the demand for end of life product
26:30management and then in the warehouse how
26:33you can sort through automated Warehouse
26:36we talked about robot controlled
26:37Warehouse right and then Predictive
26:40Analytics tools can be used to maintain
26:42the inventory of these recycled product
26:45within your uh manufacturing Hub or
26:48Warehouse then complies with the
26:50regulatory requirement obviously when
26:53you'll address these points so
26:55regulatory authorities will also
26:56appreciate these points because now you
26:59are taking care of the product you are
27:02producing at the end of life or
27:04byproduct you are producing or packaging
27:06you are you know by as byproduct you are
27:09producing in the end so that way you
27:11will be complying all the regulatory
27:13Authority or maybe the environmental uh
27:16or legal formalities whatever there
27:18customer experience and satisfaction so
27:21as a customer if I'm Every Day I'm going
27:23to dust wi throwing that package or
27:26maybe some person is special hired
27:28person is coming to my doorstep and then
27:30taking the garbage every day and instead
27:33of doing that and throwing that in just
27:36dust Bean if the career partner is
27:38coming and collecting all the packages
27:40and they are delivering the product at
27:42the same time they can collect the
27:43product as packaging as well right so
27:46that will you know enhance my
27:48involvement with you as you know uh as
27:51brand and then I will be feeling more
27:53part of that supply chain I will feel
27:56comfortable I'll feel more delighted
27:57because now my brand who is providing
28:00product or services to me is taking care
28:03of the
28:05environment continuous Improvement and
28:07Innovation when we'll track we'll uh the
28:10performance matrixes and then we'll
28:12track the feedback from the stakeholders
28:14from the customers so that will happen
28:16only when you have deployed the
28:18technology transparent technology for
28:20tracking those uh uh indicators
28:23performance indicators so obviously you
28:25can continuously you can improve on
28:27those parts part s sustainability and
28:29corporate responsibility that is main
28:32when you are getting so many resources
28:35from the environment you are depleting
28:37the environment so just uh you cannot
28:40say that this is required as a part of
28:42process this is required you should take
28:44some responsibility of the byproducts
28:46you are producing right it's not only
28:48byproduct of that uh product you are
28:50using In the End Market but sometimes
28:53while producing that product also you
28:55are producing the waste right byproducts
28:58how you are taking care of that how you
29:00are taking care of the carbon emissions
29:02coming out of your industry right so
29:04that also you need to take care so
29:07performance measures in Reverse
29:09Logistics these are some of the
29:10performance measures quickly we'll go
29:12through return rates how many returns
29:14are coming High return rates means your
29:17products are not meeting the customer
29:19expectations low return rates means you
29:21are meeting the customer expectations
29:23right return processing time how quickly
29:26you are processing the return
29:28and shorter processing time means
29:30customer is raising the uh request
29:33related to returning the product or
29:36repair or under warranty and immediately
29:38you are repairing the products right so
29:40that will ensure return processing time
29:43recovery rate how quickly you are
29:45recovering the value from the product
29:47and maximizing the value recovery right
29:51and minimizing the based that means
29:52minimum should come for the disposal and
29:56this I told you that myth is that
29:58refurbished har was once defective that
30:01is our mindset we need to change right
30:04Regulatory Compliance how many times we
30:06are complying with the environmental
30:09regulatory uh Norms rules right so that
30:12also will so carbon emission what is the
30:15carbon footprint so that we can
30:17calculate and we can compare whether we
30:20are within the line of Regulatory
30:22Compliance or
30:24not disposition cost like I told you
30:28when you are recovering the value from
30:30the end product that means again you are
30:32using you are not disposing but when you
30:34are disposing again you will go for
30:37rning that disposed uh product right you
30:40are incinerating that product waste so
30:43that means that will carry certain cost
30:45you are transporting to that uh disposal
30:48center you are storing there then people
30:51are handling that burning that again
30:53after burning Ash management all those
30:56things are there and then you are
30:57polluting the environment as well so
30:58this is the cost direct and indirect
31:01cost Transportation cost in Reverse
31:03Logistics when you are carrying the
31:05product from the End customer to maybe
31:07to fulfillment center or Warehouse
31:10centers to manufacture for again
31:12remanufacturing that product or
31:14sometimes you are shipping some
31:15components to the vendors from where
31:17those component originally were coming
31:20right so that will carry some
31:21Transportation cost inventory holding
31:24cost if you are maintaining so much
31:26inventory of these inefficient products
31:29then also it will be you know cost to
31:31you so either you should sell it quickly
31:33in the market again or you should reuse
31:36add some of the components or you should
31:38give those components to some other
31:40industry as raw material like I told you
31:42the case to case of Steel used in cars
31:45steel used in aeroplanes or other those
31:49precious items and then we can use those
31:51steel again that steel we can use for
31:54manufacturing steel roads or steel
31:56sheets right again because reverse
32:00logistic the very first and basic
32:03stakeholder is your customer if your
32:05customer is not educated throwing your
32:07garbage anywhere on the road on the
32:09street that is quite often this is
32:11happening that you will see garbage all
32:14around the dust wi but not in the dust
32:16wi right so other side outside of dust
32:19wi it is full but within dust wi you see
32:22so then how efficiently we are replacing
32:24the dust wi that is also very important
32:27point right but then yes this thing will
32:29start from the customer only we need to
32:32educate or we need to motivate the
32:34customer like you can give some
32:36promotional offers if you'll uh return
32:38the packaging the next delivery will be
32:40free kind of things and then we customer
32:43will feel happy that I'm doing nothing
32:46but then I am getting the free delivery
32:48just because of I'm and I'm uh playing
32:51very important part in that
32:52sustainability right so environment
32:55impact you need to take care of carbon
32:57emission energy consumption and uh how
33:00much waste you are generating right
33:02continuous Improvement will be there
33:04when you will be tracking your
33:05performance mattress and you need to
33:08come with the Innovative technology of
33:10packaging and I'll tell you how this
33:12menra has done that and this will be
33:14done only when your supplier uh
33:17collaboration is there because some of
33:20the components maybe directly will be
33:21supplied back to the suppliers and then
33:24again can be used as the raw material
33:27you need to train your Manpower as well
33:30if you are using data analytics or for
33:33predicting the demand then your man
33:35Manpower should be you know equipped
33:37with those tools they should know uh how
33:40they can handle this for forecasting if
33:42you are doing the reverse Logistics the
33:45your career partner should know about
33:47how you can handle the waste in more
33:49efficient way reducing the you know uh
33:53that uh uh capacity required to
33:56transport that waste again back to the
33:59uh manufacturer then technology adoption
34:01maybe software tracking for uh how much
34:05value is left in that product and uh
34:07these are some of the parts packaging
34:09tools we are using rfids iots Aid driven
34:13approach where we can be more accurate
34:16in finding out how much material is
34:18coming from uh which end and we can you
34:22know optimize the roots of the vehicles
34:24as well to collect that garbage and then
34:26the risk management contingency plans
34:29right risk management product recalls I
34:32have given you one example how products
34:35are being recalled when manufacturer
34:38suddenly realize that something has gone
34:40wrong and uh from maruti suuki from boxb
34:44from BMW all those example I have given
34:46you earlier reverse supply chain
34:49integration among all the suppliers
34:51cordination efficiency and resource
34:53utilization this is complete system my
34:56retailer cannot say that I am not part
34:58of that my career partner who is
35:00directly responsible for collecting the
35:02waste from the customer waste packaging
35:04cannot say that I'm I I'm not involved
35:07in that I cannot be part of that I I
35:09don't think I I can do that right
35:12circular economy initiatives so many
35:15organization are moving towards that if
35:17you are the concept very basic concept
35:19if anything enters into your circle of
35:22production consumption taking back it
35:25should not leave the circle right so
35:27there should should not be any concept
35:30of disposal of your BTE so whatever you
35:32are using again you should reuse in your
35:35uh uh industry as a raw material or you
35:38should provide that raw material to some
35:40other industry already we talked about
35:42the alignment align strategic priority
35:45should be there with your all the
35:47stakeholders so retailer distribution
35:49warehousing agents manufacturer raw
35:52material suppliers all should be
35:54collaborated and this will happen and
35:57you you can ensure the stakeholder uh
36:00engagement in that and you can earn more
36:02trust and you can be accountable also
36:05for who is accountable for collecting
36:07the waste who is accountable for uh uh
36:10recovering the value from the product
36:12right so who is accountable for
36:13remanufacturing so that also you can uh
36:17share so this is what I was talking
36:19about the case study of Amazon so they
36:22have ensured no first return policies
36:24and many Innovative program policies
36:26they have to ensure you know returns but
36:30because they are uh promising uh cost
36:33free returns just to build a trust
36:35between the customers and manufacturers
36:38and just to ensure that more traffic
36:40should come to their website so the only
36:42basic reason is that uh although they
36:45are attracting more and more customers
36:47but the volume of return product is also
36:49increasing right so already we talked
36:51about e- logistics industry or
36:54e-commerce industry where uh many
36:56products are coming back and you can
36:58just see a record of $761 billion
37:02merchandise was returned to retailers in
37:052021 and this is increasing year over
37:08year you can just compare the figures so
37:1115 20% increase in every year so how to
37:15manage that but Amazon has taken this
37:18Challenge and now they have avoided more
37:20than 2 million tons of packaging
37:22material since 2015 by going green
37:25packaging they have reduced 41% % uh per
37:29shipment packaging weight right and then
37:31they avoided
37:3337,50 metric tons of plastic globally
37:37right so this is how they have done that
37:39product donation is one thing they are
37:42through software they are identifying
37:43how much value is left out in that
37:46product and then they are giving those
37:48products uh donation they are they are
37:50collaborating with the local community
37:52organizations and through those
37:54Community organization they are uh just
37:58donating those products to uh the needy
38:01people who cannot purchase the new one
38:03so they are giving those products to new
38:06one this is one example you can see how
38:08many packaging components are used for
38:11this stranded and after they reduced
38:13this is they reduced 40 14 packaging
38:17components and volume in terms of volume
38:20they reduced
38:2169% and air air shift if you are
38:24reducing 69% volume that means much cost
38:28will also be reduced but what is the
38:30major thing see when primary packaging
38:32is there they are putting again
38:34secondary packaging this is secondary
38:35packaging here only primary packaging is
38:38there so this is sip your uh you are
38:41shipping only in your product packaging
38:43you need not to label your packaging on
38:46that right so this is one big and then
38:48if you are putting separate packaging
38:50for all the component 15 components you
38:52are carrying inside that box again will
38:54reduce the will increase the packaging
38:57size weight and then packaging material
39:00so that is one thing you need to handle
39:03another case study is on IA which is
39:05well known for furniture okay so how
39:09they are taking the responsibility of
39:11their end products they they try to
39:13minimize the waste maximize resource
39:16recovery and reduce its carbon footprint
39:19so they they collaborated with their uh
39:22stakeholders and customers and uh they
39:26uh encourage their custom custom to go
39:28for returns refurbishment and recycling
39:31right so under their initiatives so they
39:35product returns management they said
39:37that if uh within a specific time they
39:40are getting the product so full refund
39:43will be given so that means they will be
39:44recovering the full value of that
39:46product even if after use they are
39:48extending uh services to their customers
39:51so that they will inspect it repair it
39:54and again will be available for the
39:56customer for the next life cycle so and
39:59if it is kind of uh you need to dispose
40:03of so material recovery maybe you are
40:05recovering the wood metal plastic or
40:08other material components you have used
40:10in that so IA is doing that uh they are
40:13collaborating with their customers to
40:15you know collect those materials back so
40:17that again that can be used so in that
40:19way durability repairability and
40:22recyclability concepts are ensured
40:24through that and they have reduced the
40:27amount of waste that was directly going
40:29to landfills because landfill cost is
40:32also increasing day by day right so that
40:34is also very important disposal cost is
40:36also increasing day by day so how you
40:38can recover those components and again
40:41utilize that but to ensure that IA has
40:44to develop a very efficient
40:46Transportation Network Collection
40:48Network so that they can collect every
40:51end used product and then can be again
40:54used or maybe the components
40:57the okay components can be extracted so
41:00we can see that how they can be uh
41:03committed to sustainability and
41:05environmentally they are responsible
41:07just by handling their end products okay
41:10so this is we have seen that how reverse
41:13Logistics is uh these days very crucial
41:17because first is your very important
41:20stakeholder customers are now getting
41:22more awareness about that and your
41:24regulatory Authority governments are
41:25forcing you to be more sustainable your
41:29packaging should be sustainable so in
41:30that way you have to develop a parallel
41:34distribution Channel which will collect
41:36from the End customer and you will again
41:39ship those uh uh uh products end of life
41:42product or warranty products or maybe
41:45your semi used products unused product
41:47again to your manufacturing facilities
41:50where there again you will sort those
41:52products we'll again use some of the
41:54components again you will sell those
41:56products not in the the same market then
41:58maybe in the secondary market with the
41:59reduced cost so this is all about for
42:02reverse Logistics uh in the next class
42:05we'll uh discuss about the Green
42:07Logistics and then we'll talk about lean
42:10Logistics so these all Concepts will
42:12lead to towards the ultimate
42:14sustainability measures so these are the
42:17references so you can refer these books
42:20so that's all from my side thank you
42:22very much

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