Recycling and return of the hottest products

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Product recycling and return

"what is the most important for an enterprise's supply chain? Products, quality, on-time delivery, low loss rate, reverse logistics. Now many managers answer my questions in this order, but in the future, this reverse logistics, which is ranked at the bottom, will affect and determine the competition between enterprises."

at the first China Supply Chain Management International Forum, Professor James stoke of the University of South Florida replied

stoke is a famous American logistics expert, the founder of the concept of closed-loop logistics and reverse logistics, and the senior consultant of the American Logistics Management Association round table

can accumulate product data

the importance of reverse logistics, he asked, what do you think customers value most for managers

stoke asked and answered himself. Customers value competitive prices and good molding and processing customer service quality, but these are all factors of high performance. If the product price is too high, the quality is not high, and the service is not good, customers will not choose such suppliers, which must be done

only after having the above factors that will enable Anhui Yuantong water treatment equipment Co., Ltd. to obtain the title of Anhui famous brand, can it be used as an alternative supplier by the customer. How can the customer enter the dilemma of having no way to complain and further examine the supplier? This is reverse logistics. At this time, reverse logistics moves from the bottom to the top. The most important part of reverse logistics is the return and return of products

reduce costs, improve service levels, and increase customer satisfaction to improve customer loyalty. From the current research, enterprises that succeed in reverse logistics can save 2% of the comprehensive cost. Stoke counts the benefits of reverse logistics one by one

one reason why many enterprises are unwilling to develop reverse logistics is that they feel that their products are sufficiently competitive, but if this continues for a long time, they will sacrifice their existing advantages

from the perspective of enterprises, good reverse logistics can not only accumulate product data and provide basic data for prediction and decision-making, but also be an important marketing means to keep customers loyal; From a macro perspective, good reverse logistics can effectively use resources and energy, protect the environment, and is conducive to the sustainable development of the national economy

legislation promotes reverse logistics

in developed countries, such as Germany, the new law requires to be responsible for the final disposal of products; In some states in the United States, similar legislation is under way, and the president's Advisory Committee on sustainable development is studying product extension, stoke said

these corresponding legislations are also affecting Chinese enterprises. For electronic products put on the European market after August 13, 2005, manufacturers are required to issue a letter of guarantee when the products are put on the European market to ensure that the manufacturers bear the recovery cost when the products are scrapped

the EU has two directives, namely, the directive on scrapped electronic and electrical equipment and the directive on the prohibition of the use of certain hazardous substances in electronic and electrical equipment. According to the regulations, the 25 member states of the EU should convert the above directives into member states' laws and implement them formally before August 13 this year

according to this directive, from August 13 this year, all EU Member States should establish relevant product recycling systems to ensure that electronic and electrical products are recycled separately, and the recycling charges are borne by the product manufacturers or importers

these decrees will urge enterprises to consider the link of reverse logistics when designing the supply chain

at present, stoke takes the logistics industry of China and the United States as an example to compare. The logistics cost of the United States accounts for about 10% of GDP, and the corresponding proportion of China is 25%

under the condition that the labor cost, logistics resource cost and equipment cost in China are much lower than those in the United States, it is obvious that there are huge hidden costs in the process of supply chain management in China. In addition to the factor of inventory cost, the important reason for the abnormally high cost lies in the reverse logistics cost

in the United States, the reverse logistics cost has been controlled through effective return management, accounting for about 4% of the total logistics cost, which is a figure on the premise that 80% - 90% of all returns in its retail industry are effectively managed by third-party logistics providers

in China, the reverse logistics cost caused by the blank of reverse logistics management, the high proportion of product damage in the logistics process, and the information dislocation of the communication system is estimated to account for more than 25% of the total logistics cost

discuss the ideal mode to solve the efficiency problem

Product Recycling and return are the two most important problems to be dealt with by reverse logistics at present

"according to our research," stoke said, "the cost of product recovery is twice the cost of delivery. The logistics process of delivery can optimize factors such as products, packaging and transportation, and send the best products to customers at the lowest cost."

but when these products need to be recycled, there is no ideal model at present

the situation that product recycling may encounter is too complex: the original packaging of the product may be missing or broken; Whether the truck uses the best route and the maximum carrying capacity when transporting recycled products; Some products can be sold again after they come back, or they can be put into other retailers, and then put on shelves for resale; Some products need to be repackaged or transformed

these uncertain factors make the product recovery cost very high

under the situation of increasingly fierce competition among enterprises, if there is an optimal way to recycle products, it will gain a great competitive advantage

in this way, optimizing the recovery rate and improving the return rate are very key issues. Studying the ideal mode of reverse logistics and improving efficiency have become the most worthy topics at present, stoke believes

at present, when dealing with product recycling and return, enterprises are basically in the stage of manual recycling, rather than using the same automatic method as forward logistics

to compare the efficiency of forward logistics and reverse logistics, stoke cited an example of online shopping

he said that it was very natural for him to take a fancy to a commodity on the Internet and immediately check his credit card to see if the money was deducted after placing an order; However, when returning goods, the merchant will not immediately return the money to the customer's credit card. The reason is that it needs a processing process - from the current general situation, it takes at least more than 30 days, because the level of product recycling process is not very high, the management efficiency is not very high, and the level of shipment is far from so high

another factor is that many enterprises have not paid attention to reverse logistics at all. In fact, this makes them lose the opportunity to save costs and increase customer satisfaction - if reverse logistics is done very well and customers are very satisfied, it will increase the opportunity to buy this product and improve product loyalty

to solve the efficiency problem of reverse logistics, the current experience worth exchanging is that when purchasing products, customers are required to register recycled products, which seems to be an additional requirement and burden. This can be communicated with customers - if registered, once returned, customers can get a refund faster; For businesses, the advantage of registration is to help them understand how many customers have made Erdogan's popularity soar. Customers are asking for returns and how much storage space they need to prepare, but this is not all the benefit

explanation of terms

reverse logistics: reverse logistics is a process of planning, implementing and controlling the flow and storage of raw materials, work in progress, finished products and related information from the point of consumption to the point of output under the condition of high efficiency and appropriate cost for the purpose of resource recovery or correct disposal of waste. (end)

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