Returns of goods, waste and recyclables logistics subsystem
Waste and recyclable raw materials are generated as a side-effect of the processes of production and distribution (including handling and storage). Returns can be attributable to defects in products, surplus, delivering of the wrong goods to the recipient.
In this area we highlight also the flows of products consumed, which can become a secondary material or be subject to liquidation, as well as the waste. Due to the characteristics of the objects transferred the activity of the management of waste and recyclables in the enterprise should be primarily regarded as an element of economy of the whole country, its system of management of recycling and waste disposal.
From the point of view of the logistics systems, its specificity arises from the flows in the opposite direction. Waste and recyclable materials require preparation of logistics systems to handle cargo flows in the opposite direction, resulting in high costs of these activities.
This concerns primarily the use of redistribution channels covering the distribution channels of products. The flow of returned goods begins in this case place the end of the flow of products to the customers, and the consignee is a producer. Such obstacles to a lesser extent, concern flows to companies specializing in the management of waste.
Recyclable materials may be in fact after processing, transferred back to the manufacturer, but their movement from place of origin to the place of re-use has limited impact on product distribution channels. Also waste intended for removal are transferred as a rule, to specialized companies for storage or disposal.
The principal objectives of the logistics activities are: reducing logistics costs and improve the level of logistics services and environmental objective, relating to the protection of natural resources and reduce pollution from logistics processes.
The implementation of the highlighted objectives more closely relates to the management of waste and secondary raw materials than in the case of return of the goods to the manufacturer.
- Dyckhoff, H., Lackes, R., & Reese, J. (Eds.). (2013). Supply chain management and reverse logistics. Springer Science & Business Media.