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
Carter, C. R., & Ellram, L. M. (1998). Reverse logistics: a review of the literature and framework for future investigation. Journal of business logistics, 19(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 logistics, 22(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 Journal, 7(5), 271-282.