Sample Essay on RLTM309 Wk. 6: Secondary Markets and Disposal

The following are the major differences between forward and reverse logistics according to chapter 8 of the book entitled Managing Reverse Logistics or Reversing Logistics Management? by Marisa P. De Brito.

  Reverse Logistics Forward Logistics
Forecasting model The forecasting model employed is relatively difficult and complex The forecasting model employed is relatively straightforward and simple
Product packaging Damage often occurs to the product packaging There is uniform packaging of products (Carter & Ellram, 1998)
Pricing strategy Many factors are used to determine the pricing strategy Few and straight forwards factors are used to determine product prices
Inventory management Inconsistency occurs in the management of inventory Management of inventory is often consistent (Rogers & Tibben‐Lembke, 2001)
Speed Speed is not a major priority Speed is considered as a major priority
Transportation model It uses many to one transportation model It uses one to many transportation model
Disposition option Disposition option is not clear Disposition option is clear (Brito, 2004)
Product lifecycle More complex product lifecycle Manageable product lifecycle

 

List the key issues in defining the secondary markets, returns, and final disposal
  • There is difficulty in forecasting markets, trends, return etc.
  • Defining the primary market first requires the invention of trucks for a First-In First-Out flow
  • There is no standard for packaging to be followed when using the reverse flow method
  • This sector is led by high level of uncertainty thus more information is needed when planning to ensure efficiency (Tibben-Lembke & Rogers, 2002)
List the problem areas or trends concerning final disposal
  • Marketing difficulties, which usually result from necessity of price and vendor’s concern
  • The use of less straightforward negotiation in the market
  • The market is characterized by differences in nature and visibility of costs

 

 

References

Carter, C. R., & Ellram, L. M. (1998). Reverse logistics: a review of the literature and framework for future investigation. Journal of business logistics19(1), 85.

De Brito, M. (2004). Managing reverse logistics or reversing logistics management? (No. ERIM PhD Series; EPS-2004-035-LIS).

Rogers, D. S., & Tibben‐Lembke, R. (2001). An examination of reverse logistics practices. Journal of business logistics22(2), 129-148.

Tibben-Lembke, R. S., & Rogers, D. S. (2002). Differences between forward and reverse logistics in a retail environment. Supply Chain Management: An International Journal7(5), 271-282.