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

2. Closed Loop Supply Chain
FORWARD SUPPLY CHAIN
REVERSE SUPPLY CHAIN

3. 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

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

5. 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

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

7. 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%

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

9. 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)

10. 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

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

12. 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

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