| Reverse Logistics for Green Supply Chains |
Corporate social responsibility (CSR) is a hot topic nowadays. Companies devote themselves to creating a working environment which is delicately balancing on the three corner stones of the people, profit and planet triangle.
CSR in logistics can be realized by complementing the forward supply chain movement with a reverse flow. In this way, companies can actually close their supply chain loops. Whereas focus has been on efficiency of the forward chain, the management challenge is moving to collecting the end of use products and returning the materials to the origin. Especially with rising energy and material costs, re-using and recycling products starts to become more beneficial. The benefits do not only improve the financial results, but also have a positive impact on sustainability. Re-using product materials saves a lot of energy which would otherwise be needed for producing new products. In a recent survey of reverse logistics, Cap Gemini showed that 73% of the logistics executives have been able to reduce their procurement costs, by incorporating reverse logistics into their supply chain management practices. Even though the economy is spiraling downwards, manufacturers and retailers do not slow down their reverse logistics initiatives. Logistics service providers are even developing new services for reverse logistics, including repair & return, swap faulty for good, disposables collection and waste management. Reverse logistics can thus improve the bottom line and at the same time help in creating green supply chains.
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