Contents

CASE. DETAILS PAGES NO.

CONTENT 1-2

TABLE 9 CORE ACTIVITIES ………………………………….. 3

1 SUPPORTING PRODUCTION ………………………………….. 41.0 Problem Waste ……………………………………………… 4 1.2 Solution Push vs Pull ………………………….……………. 5-6

2 ACTIVITIES DEMAND MANAGEMENT ………………………7-82.1 Problem Bullwip Effect ……………………………..…….…. 8

2.2 Solution CPFR ………………………………………………. 9

3 ACTIVITI PROCUREMENT MANAGEMENT ……………….10-113.1 Problem High Cost, Bribery ……………………………… 12-13

3.2 Solution E-Procurement ………………………………….. 13

4 INVENTORY MANAGEMENT ……………………………….. 14-154.1 Problem Bull Whip Effect………………………………… 164.2 Solution Vendor Managed Inventory (VMI) …………..

16

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5 WAREHOUSE MANAGEMENT..…………………………….. 175.1 Problem Sapce…………..………………………………… 185.2 Solution Cross Docking……………………..………….. 18-19

ContentsCASE. DETAILS PAGES NO.

6 TRANSPORTATION MANAGEMENT……………………….20-216.1 Problem High Cost……..………………………………… 21

6.2 Solution Outsourcing…………..…………..………….. 22-23

7 TRANSPORTATION MANAGEMENT……………………….24 7.1 Problem High Cost……..…………………………………24-25 7.2Solution Outsourcing…………..…………..………….. 25

8 SUPPLIER RELATION MANAGEMENT…………………….26 8.1 Problem Ineffctive Performance ………………………… 26-278.2 Solution Vendor Management ...…………..………….. 27

9 SUPPLIER RELATION MANAGEMENT…………………….28 9.1 Problem Ineffctive Performance ………………………… 299.2 Solution Vendor Management ...…………..………….. 29

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REFERRENCE…………………………………………………… 30

TABLE 9 CORE ACTIVITIES

NO ACTIVITIES PROBLEM SOLUTION1 Supporting

ProductionWaste Push vs Pull

2 Demand Management Bullwhip Effect CPFR

3 Procurement Management

High Cost, Bribery E-Procurement

4 Inventory Management

Bullwhip Effect Vendor Managed Inventory

5 Warehouse Management

Space Cross Docking

6 Transportation Management

High Cost Outsourcing

7 Supplier RelationManagement

Ineffective Performance

Vendor Management

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8 Customer RelationManagement

Loyalty Membership Card

9 Reverse Logistic Poor Image Corporate Social Responsibilities

CASE1. SUPPORTING PRODUCTION

Production is by means of input to output process.

The processes and methods used to transform tangible inputs (raw

materials, semi-finished goods, subassemblies) and intangible inputs

(ideas, information, knowledge) into goods or services. Resources

are used in this process to create an output that is suitable for

use or has exchange value.

Supports of production are being influence by 5m;

Machine

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Man Power

Method

Material

Money

1.0 Problem Waste

Waste can be regarded as a human concept as there appears to

be no such thing as waste in nature. The waste products

created by a natural process or organism quickly become the

raw products used by other processes and organisms. Recycling

is predominant, therefore production and decomposition are

well balanced and nutrient cycles continuously support the

next cycles of production. This is the so-called circle of

life and is a strategy clearly related to ensuring stability

and sustainability in natural systems. On the other hand there

are man-made systems which emphasize the economic value of

materials and energy, and where production and consumption are

the dominant economic activities. Such systems tend to be

highly destructive of the environment as they require massive

consumption of natural capital and

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energy, return the end product (waste) to the environment in a

form that damages the environment and require more natural

capital be consumed in order to feed the system. Where

resources and space are finite (the Earth isn’t getting any

bigger) this is ultimately not sustainable.Â

The presence of waste is an indication of overconsumption and

that materials are not being used efficiently. This is

carelessly reducing the Earths capacity to supply new raw

materials in the future. The capacity of the natural

environment to absorb and process these materials is also

under stress. Valuable resources in the form of matter and

energy are lost during waste disposal, requiring that a

greater burden be placed on ecosystems to provide these. The

main problem is the sheer volume of waste being produced and

how we deal with it.

1.2 Solution Push vs Pull

Push and pull policies identify the different logics that

underpin the relationship between a business and its final

demand. Push policy refers to the development of processes

that emanate from the company and go towards the market, while

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pull policy refers to processes that start from the market and

go towards the company. Push and pull policies identify

processes regarding project, production and distribution

activities but also communication flows. This two policies

differ for costs, and for their ability to adapt to the

various competitive dynamics. In global dynamic markets, in

over supply conditions, push and pull policies can be

integrated to maximize the advantages of scale and the

competitiveness of fast

and personalized market reactions push is an activity in

operation and production that refers to process of make to stock.

Produces as much product as the company can and/or wants to

produce and then gets it out to the customer. The result is

usually large inventories

Pull is an activity in operation and production that refers to

process of make to oder, an example of this is the car

manufacturing company that only produces cars when they have

been ordered by the customers.

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CASE2. ACTIVITIES DEMAND MANAGEMENT

Demand management is a unified method of controlling and

tracking business unit requirements and internal purchasing

operations. It helps organizations remain engaged in their

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supplier relationships and related advantages. Organizations

use demand management systems to address external spending

factors, arrange purchase orders and eradicate waste. Demand

management focuses on the volume of products that are

purchased from providers, rather than individual product

pricing, in contrast to conventional sourcing initiatives.

Demand management is also known as consumption management or

strategic spend management.

Demand management begins with an in-depth perception of

existing business requirements, historical buying behavior

and expected requirement for the service or product sourced

by an organization. This research includes an assessment of

purchase orders, service or product specifications and

strategic business plans. Demand management helps streamline

purchasing techniques. When applying demand management, key

considerations include: Available options for volume

discounts Order timing's impact on pricing Whether or not

the best suppliers are being utilized Precise attention to

described contract processes Building overall performance

measures and essential performance indicators is vital to

keeping track of demand and potential intervention. The

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accumulated data can result in better demand forecasts,

which may be incorporated with an extensive supplier-

communications program. These details help suppliers handle

assets more effectively, which reduces expenditures.

Advantages of demand management are as follows: Screens the

growth and decline of the quantity of transactions between

suppliers Monitors all related expenditures Illustrates the

reasoning behind continuing to strengthen supplier

relationships - internally and externally Demand management

is developing into a widely accepted strategy preferred

across a variety of organizations and sectors, like telecom

and financial institutions, etc. Many organizations that use

demand management to target indirect spent sections also use

the approach for more complicated spent categories, such as

travel, direct materials and technology

2.1 Problem Bullwip Effect

The bullwhip effect on the supply chain occurs when changes in

consumer demand causes the companies in a supply chain to

order more goods to meet the new demand. The bullwhip effect

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usually flows up the supply chain, starting with the retailer,

wholesaler, distributor, manufacturer and then the raw

materials supplier. This effect can be observed through most

supply chains across several industries; it occurs because the

demand for goods is based on demand forecasts from companies,

rather than actual consumer demand

2.2 Solution Collaborative Planning, Forecasting and Replenishment (CPFR)

Collaborative Planning, Forecasting and Replenishment (CPFR)

is a tool used to enhance the supply chain that should

optimally yield in lower inventories, logistic costs and

create efficiency in the whole supply chain to all

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participants. CPFR uses cooperative management in sharing key

information about the supply chain between suppliers and

retailers (sellers and buyers) who work together to satisfy

the needs of the end customer. The origins of the model date

back to 1995 initiated by Wal-Mart, Cambridge University and

software and strategy firm Benchmarking Partners, after which

it was introduced to Voluntary Interindustry Commerce

Standards Committee (VICS) to be the international standard.

Today over 300 companies have implemented the model and

numerous case studies show inventory reductions of 10-40%

across the supply chain and improvements of in stock products

by 2-8%1. The following graph represents the collaboration

activities of buyer and seller2

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CASE3. ACTIVITI PROCUREMENT MANAGEMENT

Following are the four main working areas of concerns when it

comes to procurement management. The following points should

be considered whenever procurement process is involved:

Not all goods and services that a business requires need

to be purchased from outside. It is for this reason that

it is very essential to weigh the pros and cons of

purchasing or renting these goods and services from

outside.

You would need to ask yourself whether it would in the

long run be cost-effective and whether it is absolutely

necessary.

You would need to have a good idea of what you exactly

require and then go on to consider various options and

alternatives. Although there may be several suppliers,

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who provide the same goods and services, careful research

would show you whom of these suppliers will give you the

best deal for your organization.

You can definitely call for some kind of bidding for your

requirement by these vendors and use a selection

criterion to select the best provider.

The next step typically would be to call for bids. During

this stage, the different suppliers will provide you with

quotes.

This stage is similar to that of choosing projects, as

you would need to consider different criteria, apart from

just the cost, to finally decide on which supplier you

would want to go with.

After the evaluation process, you would be able to select

the best supplier. You would then need to move on to the

step of discussing what should go into the contract.

Remember to mention all financing terms how you wish to

make the payments, and so on, so as to prevent any

confusion arising later on, as this contract will be

binding.

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Always remember that it is of utmost importance to

maintain a good relationship with the supplier. This

includes coming up with an agreement that both would find

satisfactory. This helps the sustainability of your

business as well as the supplier's business.

These four simple steps would help you acquire your goods

easily and quickly without much hassle, but always requires

careful consideration at each stage

3.1 Problem High Cost, Bribery

No one knows better than companies operating internationally

that bribery is bad for business. These companies report that

corruption introduces uncertainty into commercial

transactions, fosters a permissive atmosphere for other

business crimes, undermines employee confidence in management

and puts a company’s value and reputation at risk. Most

multinational companies have made progress toward eliminating

traditional bribes from their business practices. They have

done this by implementing comprehensive compliance programs,

by training local and foreign employees and business

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intermediaries and by rigorous internal enforcement. Now many

of these companies are taking steps to eliminate “facilitation

payments” from their business practices as well. These small

bribes, also called “grease payments”, permitted under the

laws of some countries, are made to government officials to

encourage them to perform or expedite routine governmental

tasks. The definition of such tasks, however, is often unclear

and stretched to the breaking point.

3.2 Solution E-Procurement

E-procurement (electronic procurement, sometimes also known

as supplier exchange) is the business-to-business or

business-to-consumer or business-to-government purchase and

sale of supplies, work, and services through the Internet as

well as other information and networking systems, such as

electronic data interchange and enterprise resource

planning.[1] The e-procurement value chain consists of

indent management, eTendering, eAuctioning, vendor

management, catalogue management, Purchase Order

Integration, Order Status, Ship Notice, eInvoicing,

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ePayment, and contract management.[citation needed] Indent

management is the workflow involved in the preparation of

tenders. This part of the value chain is optional, with

individual procuring departments defining their indenting

process. In works procurement, administrative approval and

technical sanction are obtained in electronic format. In

goods procurement, indent generation activity is done

online. The end result of the stage is taken as inputs for

issuing the NIT.[citation needed] Elements of e-procurement

include request for information, request for proposal,

request for quotation, RFx (the previous three together),

and eRFx (software for managing RFx projects).

CASE4. INVENTORY MANAGEMENT

Inventory management is the process of efficiently overseeing

the constant flow of units into and out of an existing

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inventory. This process usually involves controlling the

transfer in of units in order to prevent the inventory from

becoming too high, or dwindling to levels that could put the

operation of the company into jeopardy. Competent inventory

management also seeks to control the costs associated with the

inventory, both from the perspective of the total value of the

goods included and the tax burden generated by the cumulative

value of the inventory. Balancing the various tasks of

inventory management means paying attention to three key

aspects of any inventory. The first aspect has to do with

time. In terms of materials acquired for inclusion in the

total inventory, this means understanding how long it takes

for a supplier to process an order and execute a delivery.

Inventory management also demands that a solid understanding

of how long it will take for those materials to transfer out

of the inventory be established. Knowing these two important

lead times makes it possible to know when to place an order

and how many units must be ordered to keep production running

smoothly. Calculating what is known as buffer stock is also

key to effective inventory management. Essentially, buffer

stock is additional units above and beyond the minimum number

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required to maintain production levels. For example, the

manager may determine that it would be a good idea to keep one

or two extra units of a given machine part on hand, just in

case an emergency situation arises or one of the units proves

to be defective once installed. Creating this cushion or

buffer helps to minimize the chance for production to be

interrupted due to a lack of essential parts in the operation

supply inventory. Inventory management is not limited to

documenting the delivery of raw materials and the movement of

those materials into operational process. The movement of

those materials as they go through the various stages of the

operation is also important. Typically known as a goods or

work in progress

inventory, tracking materials as they are used to create

finished goods also helps to identify the need to adjust

ordering amounts before the raw materials inventory gets

dangerously low or is inflated to an unfavorable level.

Finally, inventory management has to do with keeping accurate

records of finished goods that are ready for shipment. This

often means posting the production of newly completed goods to

the inventory totals as well as subtracting the most recent

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shipments of finished goods to buyers. When the company has a

return policy in place, there is usually a sub-category

contained in the finished goods inventory to account for any

returned goods that are reclassified as refurbished or second

grade quality. Accurately maintaining figures on the finished

goods inventory makes it possible to quickly convey

information to sales personnel as to what is available and

ready for shipment at any given time. In addition to

maintaining control of the volume and movement of various

inventories, inventory management also makes it possible to

prepare accurate records that are used for accessing any taxes

due on each inventory type. Without precise data regarding

unit volumes within each phase of the overall operation, the

company cannot accurately calculate the tax amounts. This

could lead to underpaying the taxes due and possibly incurring

stiff penalties in the event of an independent audit.

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4.1 Problem Bull Whip Effect

"Bullwhip effect" is the characteristics of the supply chain

inventory management. Thus, traditional inventory management

methods are not good solutions to this problem. Only by

adopting innovative supply chain inventory management

approach, can this problem be solved. There are four measures

each focusing on one cause to reduce the bullwhip effect:

Sharing Information, Improving Operation, Stabilizing Price

and Establishing Strategic Partnerships.

First, bullwhip effect at each stage of the supply chain is

caused by applying demand according to order rather than

customers’ demand. And the only need of supply chain is to

meet the needs of end customers. If the retailers share point

of sale (POS) data with other members of the whole supply

chain, the members can respond to changes of the actual

customers’ requirement quickly. Therefore, the implementation

of sharing POS data in the supply chain, which helps to gain

more accurate predictions at each stage of the supply chain,

can reduce variability of demand forecast and reduce the

bullwhip effect. Second, improving operations, shortening lead

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time and reducing ordering bulk can reduce the bullwhip

effect. These actions need some information systems to support

them. Third, developing appropriate pricing strategies can

encourage retailers to order small quantities and reduce the

advanced purchasing behavior to reduce the bullwhip effect.

Fourth, the establishment of the strategic partnership can

build up mutual trust, share information to match the supply

and demand of each stage of the supply chain well, thus reduce

transaction costs.

4.2 Solution Vendor Managed Inventory (VMI)

Vendor Managed Inventory simply means the vendor (the

Manufacturer) manages the inventory of the distributor. The

manufacturer receives electronic messages, usually via EDI,

from the distributor. These messages tell the manufacturer

various bits of information such as what the distributor has

sold and what they have currently in inventory. The

manufacturer reviews this information and decides when it is

appropriate to generate a Purchase Order. To further explain

Vendor Managed Inventory, lets look at an example. Prior to

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implementing a VMI program, a Widget Distributor operated

under a non-VMI business model. It created an inventory plan,

then monitored and controlled it's own inventory levels. When

the company felt it needed more inventory, they would place a

Purchase Order against the manufacturer.Under a Vendor Managed

Inventory setup, the Widget Manufacturer would setup the

Distributors inventory plan. The Manufacturer would then

monitor the Distributors inventory levels, keeping track of

the sales and the current inventory level. Once the

Manufacturer believed the Distributors inventory levels were

too low, the Manufacturer would generate the Purchase Order

and ship the product to the Distributor.  Vendor Managed

Inventory gives the control over the inventory to the

Manufacturer.

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CASE5. WAREHOUSE MANAGEMENT

Warehouse management systems will typically need to be

integrated with the enterprise systems to receive real-time

updates on shipments, material requests, and distribution

orders.

SKU (Stock Keeping Unit)

Warehousing item that is unique because of some characteristic

(such as brand, size, and color, model) and must be stored and

accounted for separate from other items. Every SKU is assigned

a unique identification number (inventory or stock number)

which is often the same as (or is tied to) the item's. The

main tasks of a WMS are to manage and optimize the internal

warehouse systems.There are two types of warehouse :-

1) Private warehouse

2) Public warehouse

i. Private Warehouse

A private warehouse is a storage facility where storage and

operations are run by a firm or a completely single

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manufacturer. Most big companies own private warehouses while

small firms mostly uses public warehouse.

ii. Public Warehouse

A public warehouse is available for hire on a variable term

basis and oftentimes will have multiple customers' products at

a time. Some are specialized to deal with specific items

5.1 Problem Space

Not every distributor reduced inventory as the recession

resulted in decreased sales. One distributor actually

increased inventory in the face of slowing sales, and planned

to add lines. But there were two problems. First, almost all

the slots in the warehouse were occupied. A warehouse arranged

by velocity. Second, picking productivity was lower than it

had been before warehouse head count had been reduced.

5.2 Solution Cross Docking25 | P a g e

Cross Docking speed and productivity of a supply chain has

become an important factor of growth for organisations.

Cross-docking is just one strategy that can be implemented to

help achieve a competitive advantage. Implemented

appropriately and in the right conditions, cross-docking can

provide significant improvements in efficiency and handling

times.

Cross docking is a logistics procedure where products from a

supplier or manufacturing plant are distributed directly to a

customer or retail chain with marginal to no handling or

storage time. Cross docking takes place in a distribution

docking terminal; usually consisting of trucks and dock doors

on two (inbound and outbound) sides with minimal storage

space. The name ‘cross docking’ explains the process of

receiving products through an inbound dock and then

transferring them across the dock to the outbound

transportation dock.

In simple terms, inbound products arrive through

transportation such as trucks/trailers, and are allocated to a

receiving dock on one side of the ‘cross dock’ terminal. Once

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the inbound transportation has been docked its products can be

moved either directly or indirectly to the outbound

destinations; they can be unloaded, sorted and screened to

identify their end destinations. After being sorted, products

are moved to the other end of the ‘cross dock’ terminal via a

forklift, conveyor belt, pallet truck or another means of

transportation to their destined outbound dock. When the

outbound transportation has been loaded, the products can then

make their way to customers.

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CASE6. TRANSPORTATION MANAGEMENT

Transportation management system (TMS) is a subset of supply

chain management concerning transportation operations and may

be part of an enterprise resource planning system.

A TMS usually "sits" between an ERP or legacy order processing

and warehouse/distribution module. A typical scenario would

include both inbound (procurement) and outbound (shipping)

orders to be evaluated by the TMS Planning Module offering the

user various suggested routing solutions. These solutions are

evaluated by the user for reasonableness and are passed along

to the transportation provider analysis module to select the

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best mode and least cost provider. Once the best provider is

selected, the solution typically generates electronic load

tendering and track/trace to execute the optimized shipment

with the selected carrier, and later to support freight audit

and payment (settlement process). Links back to ERP systems

(after orders turned into optimal shipments), and sometimes

secondarily to WMS programs also linked to ERP are also

common. Transportation system is categorized into four major

subsystems according to the medium on which the flow elements

are supported. These subsystems are commonly referred to as

modes.

1) Land transportation

Highway or road transportation

Railway transport system

2) Air (flying) services transportation

Domestic

International

3) Water transportation

Inland (rivers and seas)

Coastal

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Ocean

6.1. Problem High Cost

Many manufacturers involved in transportation industries

experience problems related to :

- Poor visibility of delivery dates

- Frequent delays in-transit

- Too much inventory in the pipeline due to long transit

times

Transportation costs can be a significant part of a company’s

overall logistics spends. With the increase in the price of

fuel, maintaining the maintenance at workplace and taking care

of the manpower.

6.2.Solution Outsourcing

Companies turn to outsourcing and consulting for many reasons.

They look to reduce costs, shorten cycle time, improve

shareholder value, decrease inventory, focus on core

competencies, gain information technology, increase expertise

and more.

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Likewise transport, warehouse, forwarder and other logistics

service providers want to provide outsource and consulting

services. They want to improve profits, transition from being

a commodity service provider, gain volumes and throughput by

leveraging existing core logistics service, increase revenues

and more. This creates a mutual need between the two parties.

Yet despite this common interest, half of the outsourcing and

consulting relationships end unsatisfactorily within three

years. Half are not able to go beyond a buyer-seller

relationship.

The responsibility for the failure often resides with both

parties. Reasons for the failures run the gamut and include:

Poor project design

Lack of metrics or key performance indicators (KPIs)

Use of improper metrics or KPIs

Not fulfilling expectations of either or both parties

No clear lines of responsibility and accountability

Inability to evolve the relationship from short term to

long term and from static to dynamic

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Some reasons for failure reflect symptoms, not causes.

Failures are not unique to outsourcing; but outsourcing is

unique. Outsourcing goes beyond transport or warehouse

agreements and service. Supply chain management is one of

largest costs and has significant service impact to companies.

Some contract logistics projects are critical to a company's

supply chain and operating success. Therefore outsourcing

consulting should be designed not to fail, especially with

supply chain management. The impact can be significant to the

company doing the outsourcing.

Much is discussed about metrics and service level agreements

(SLAs) in defining the outsourcing relationship. These should

be after-the-fact and matter-of-fact results of the project

definition and design.

Whether the two parties are trying to develop the contract

logistics relationship or are striving to make an existing

outsourced program succeed, there are three fundamental issues

that must be addressed.

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CASE7. SUPPLIER RELATION MANAGEMENT

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Supplier relationship management is a comprehensive approach

to managing an enterprise's interactions with the

organizations that supply the goods and services it uses. The

goal of supplier relationship management (SRM) is to

streamline and make more effective the processes between an

enterprise and its suppliers just as customer relationship

management (CRM) is intended to streamline and make more

effective the processes between an enterprise and its

customers.

SRM includes both business practices and software and is part

of the information flow component of supply chain management

(SCM). SRM practices create a common frame of reference to

enable effective communication between an enterprise and

suppliers who may use quite different business practices and

terminology. As a result, SRM increases the efficiency of

processes associated with acquiring goods and services,

managing inventory, and processing materials.

According to proponents, the use of SRM software can lead to

lower production costs and a higher quality, but lower priced

end product. SRM products are available from a number of

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vendors, including 12 Technologies, Manugistics, PeopleSoft, and

SAP.

7.1 Problem Ineffective performance

Nowadays, there are a lot about risk recently and in

particular, the risk that many companies are exposed to by not

managing their suppliers effectively. All organizations must

quantify and manage their risks effectively in order to be

successful over time. When dealing with suppliers, there are

substantial risks and potential for disaster in the form of

bankruptcy, environmental problems, delivery failure, lacks of

materials, poor performance, or product defects. Most

organizations recognize that these risks exist, but do not

take sufficient steps to manage them effectively..

7.2 Solution Vendor Management

As organizations seek new and creative ways to address the

changing economic climate and the shifting demands for

productivity and efficiency in the workplace, we have to

struggle to manage and measure a workforce comprised of

salaried, hourly, and contingent workers.

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Peoplefluent’s Vendor Management System provides visibility

into the extended workforce, allowing organizations to better

manage spend, compliance, risk and efficiency. Peoplefluent

provides solutions that address us total workforce to ensure

alignment, assessment, measurement and productivity across the

enterprise.

Peoplefluent Vendor Management System helps organizations

effectively and efficiently manages their temporary,

consultative, and professional services workforce. By

improving operational efficiencies, cost controls, compliance,

and invoice controls for staff augmentation and professional

services spend.Peoplefluent Vendor Management System enables

us to leverage the contingent and services procurement

workforce as a strategic compoent of your overall human

capital management strategy.

Peoplefluent Vendor Management System enables

organizations to achieve fluency in the management and

optimization of their contract and temporary labor by

designing solutions to address capabilities for both

contingent and services procurement spending. By using the

solution to improve operational efficiencies, control costs,

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and establish visibility and planning of their contingent

labor, the solution enables organizations to successfully

deliver impactful and measureable results, while leveraging

their extended workforce as a strategic component of the

overall human capital management strategy

CASE8. Customer Relation Management

Customer relationship management (CRM) is a model for Managing

Company’s interaction with current and future customers. It involves using

technology to organize, automate, and synchronize sales,

marketing, customer service, and technical support.

8.1 Problem : Loyalty

Loyalty has been defined by Oliver, 1997:392 as “a deeply held

commitment to rebuy a preferred product or service

consistently in the future, thereby causing repetitive same

brand-set is purchasing, despite situational influences and

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marketing effort having the potential to cause switching

behavior.”

This can be illustrated significant multivariate relationships

between service quality, value, satisfaction and behavioral

intentions and all of these three service evaluation variables

directly influenced behavioral intentions when the effects of

all three are simultaneously considered. Although it’s a

different conceptualizations of both loyalty and its direct or

indirect relationships with its major determinants, explicitly

value, satisfaction and quality.

8.2 Solution Reverse logistic

Reverse logisticas the process of moving product from its

point of consumption through channel members to the point of

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origin to recaptured value or ensure proper disposal. Returns

can affect every channel member from consumers, retailers and

wholesalers to manufacturers. Returns are caused for different

reasons depending on the nature of the materials involved,

packaging or products.

Characteristic of reverse logistics are :

Customers not satisfied

Installation or usage problems

Warranty claims

Faulty order processing

Retail overstock

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CASE9. Reverse Logistic

Reverse logistics stands for all operations related to the

reuse of products and materials. It is "the process of

planning, implementing, and controlling the efficient, cost

effective flow of raw materials, in-process inventory,

finished goods and related information from the point of

consumption to the point of origin for the purpose of

recapturing value or proper disposal. More precisely, reverse

logistics is the process of moving goods from their typical

final destination for the purpose of capturing value, or

proper disposal. Remanufacturing and refurbishing activities

also may be included in the definition of reverse

logistics.The reverse logistics process includes the

management and the sale of surplus as well as returned

equipment and machines from the hardware leasing business.

Normally, logistics deal with events that bring the product

towards the customer. In the case of reverse logistics, the

resource goes at least one step back in the supply chain. For

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instance, goods move from the customer to the distributor or

to the manufacturer.

9.1 Problem Poor Image

When it comes to returns management, however, supply chain

order grows chaotic. Product is being pushed back upstream,

timeliness is no longer an imperative, and volume is

unpredictable and difficult to forecast or control. Simply,

reverse logistics defies forward-thinking logic. Moving

backward through the supply chain is more difficult and

complex because there isn't a priority and products are moving

against the normal flow. That logic, however, doesn't always

play out because of reverse logistics' inherent nuances—

reverse logistics is seen as a cost within the company

compared to forward-thinking logistics, which centers around

profit-driven processes.

But while reverse logistics may be an inevitable growing pain,

and a difficult one to assuage, it also promises to become an

even greater part of supply chain management and a potential

revenue stream for businesses that do it right. Economic

constraints, environmental stewardship, a more holistic vision41 | P a g e

of supply chain management, and in some cases federal

legislation have all triggered a higher awareness of reverse

logistics processes and the role they play in the supply

chain.

9.2 Solution Corporate Social Responsibilities

Corporate social responsibility (CSR) is largely associated

with big companies.  They are more high profile and thus

attract more media attention and they are particularly

concerned to protect and enhance their reputations with the

broader public as well as key stakeholders.  They are also

often better-resourced and more able to invest in CSR. 

However, CSR is important for small and medium-sized

enterprises as well (SMEs are organizations of up to 1,000

employees

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REFERRENCE

http://www.scm.ncu.edu.com

www.vendormanagedinventory.net

cmusm.blogspot.com/2013/02/how-to-control-bullwhip-effect-

in.html

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