INVERSE LOGISTICS SCOPE
Inverse logistics consists of handling the returns of products from Customers DCs/Warehouse which are no longer necessary in the Customer´s inventories. Our main goal is to collect the goods in the most efficient and reliable way and classify them according to the following categories: A). Repack, B). Destroy, C). Integrate goods back to the inventory .
REASONS FOR 3PL
INVERSE LOGISTICS
IMPLEMENTATION
Human
Error
-
Errors caused by not counting correctly the receipt of goods or shipping incomplete cases.
High
Distraction
-
Key Accounts Managers now will be more focused to grow the business instead of spending time to clarify R&R
-
Customer service contacts will now have more time to improve KPIs
Lack of StandardizationAccountability
-
Normally the industry does not have qualified individuals to follow correctly this policy.
-
Lack of training
-
Lack of SLA
-
Many organizations do not have clear accountability of this Process.
-
Lack of Roles and responsibilities.
Lack of: Agility,
Streamline,
Flexibility
-
Become more flexible in the policy.
-
Streamline the existing process.
Confusion in
AP/AR
-
Our experience indicates that normally there is confusion to correctly identify the goods and consequently to make the right balance of accounts receivables and accounts payables.
Lack of Cost
Reduction Ideas
-
Operating teams will have more time to find and implement ideas to reduce costs in the distribution and transportation
Lack of
Control
-
R&R reports are not generated in detail so no statistics are made to establish and monitor progress in the action plans with the customers and/or internally in the operation.
Damage in
Product handling Transportation
-
Identify root cause of posible damage of goods during handling and transportation.
OVERALL 3PL INVERSE
LOGISTICS PROCESS
01
Schedule visit or call to the customers to receive request.
02
Identify the goods involved in this R&R.
03
Verify that goods meet with the R&R policy.
04
Upload the goods in the system and match it physically as well.
05
Classify the category of R&R.
06
Root cause analysis of why the R&R occur.
07
Verify the full compliance of the policy.
08
Collect QA approval and update the information in the system.
09
Move and accommodate goods in the Warehouse in the right location.
10
Verify that system matches with the physical
inventory.
11
Make sure that all R&R goods are clearly Identify and labeled in the warehouse.
12
Define disposal plan for those goods that are damaged/obsolete or expired.
13
Ship damaged/obsolete/expired goods and ensure destruction plan is properly executed
14
Provide formal feedback to management about R&R reports.
"You will not find it difficult to demonstrate that battles, campaigns and even wars have been won or lost primarily because of logistics".
Dwight D. Eisenhower
