EAD 765 Profa.Adriana Marotti Reverse Logistics EAD 765 Profa.Adriana Marotti

Closed Loop Supply Chain FORWARD SUPPLY CHAIN REVERSE SUPPLY CHAIN

Direct Logistics 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 origin to the point of consumption for the purpose of conforming to customer requirements

Reverse Logistics Reverse Logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal

Some data about return rates (global) Books= 20% a 50% E- Commerce= 25% a 35%(USA) ( 5% A 10%) (Brasil) Eletronics= 10% a 12% Computers = 10% a 20% Automotive Parts= 4% a 6% 80% Automotive batteries 60% A 80% Aluminium Cans

What does not return 98% of cell phones 85% plastics 90% Tetrapak packings 90% Eletronic waste* 90% lamps* 16.000 ton. /day of waste in the city of São Paulo * estimated Source: CRLB – Conselho de Logística Reversa no Brasil.

Reverse Logistics- Brasil Estimated costs of reverse logstics= 0,5% PIB Majority is post sales Few is post consuption Average of retail return rates= 6%

Estimated Market for :(USA) Remanufacturing of electric generators. = Us$ 36 bi Remanufaturing of printer cartridges = us$ 1 bi Fonte: LEITE CONSULTORIA (2010)

Market potential(Brasil) Post Consumption Iron/Steel= us$ 2 bi / year Aluminium= US$ 1 bi/year Plastics =us$ 2 bi /year City Waste= moe than R$ 6 bilhões / year Fonte: LEITE CONSULTORIA (2010)

Aestetics not desirable Why do products return? From final consumer Malfunction Wrong delivery Aestetics not desirable From retailers New collection Excess of inventory Returnable packaging From producer Wrong order Excess of Inventory Quality Returnable Pakaging

What about End of Life Products Reuse – Still usable products Industrial Waste Products in End of Life Durable and disposable

Drivers for Reverse Logistics Higher product return Rate Fast Fashion Shorter life cycles Stricter regulations Higher product mix High Product Rates Exhaustion of traditional landfills

Challenges for Reverse Logistics: Less predictable conditions Heterogenous markets Black Market Transaction Costs 12x higher Return Costs 3X higher than DL Return rates