Following the increasing cost of products, components, materials, equipment and other complete technical systems within the company will go backward in the supply chain. For quite a good time, the company has always reworked such products in a bid to achieve the right quality and, at times returning them to the production chamber. However, the gain resulting from reworking the materials has been insignificant as they lead to misuse of resources in the reworking processes. It is because the defective products resulting from the manufacturing processes can only be detected after they pass through different supply chains, which at times are also costly to initiate. Therefore, the company has ventured into reverse logistic practices to bridge the gaps which are likely to create a loss for the company.
First, the ongoing networks set up by independent third parties have been in place, mainly because the underlying case integrations regarding the company's original production-distribution system have experienced continuously hard times. Similarly, the resulting economic consequences involving the available alternatives in the entire facility do not correspond to the location of the company hence making the reworking process more difficult (Kazemi et al., 2019). Consequently, the cost of acquiring labor becomes more expensive than in the cases of reverse logistics.
The strategy has effectively worked in various international companies. For instance, to cope with the newly initiated Dutch legislation, a glass company in the Netherlands, which is the legal property of a Glass Recycling Foundation, the company modified a comprehensive collection and pickup system that undertakes the collection of glass from various households (Prajapati et al., 2019). The Dutch global network for dealing with Glass Weeks has conclusively established a unique conglomerate in the country named Auto Recycling Netherlands (ARN) that aims to fulfill the legal requirements of manufacturing processes (Kazemi et al., 2019).
Similarly, companies that have always supplied paper and cardboard to the Dutch market have laid robust recycling cooperation that takes good care of the paper collection since no material requires more input than others to create utility. The initiated reverse logistics have shifted the focus from reworking the under-manufactured papers to the active collection of used papers from various households under the management of non-profit organizations.
Generally, the initiative will provide our organization with a changing trend in bearing the consequences of incineration costs alongside manufacturing taxes, as it will lower the volume of goods manufactured by the company. This is because no reworking of the products will be done since the reverse logistics demand that every end product from the manufacturing chamber is to be used regardless of the quality.
Chief Executive Officer.
Kazemi, N., Modak, N. M., & Govindan, K. (2019). A review of reverse logistics and closed loop supply chain management studies published in IJPR: a bibliometric and content analysis. International Journal of Production Research, 57(15-16), 4937-4960. https://www.tandfonline.com/doi/abs/10.1080/00207543.2018.1471244
Prajapati, H., Kant, R., & Shankar, R. (2019). Bequeath life to death: State-of-art review on reverse logistics. Journal of Cleaner Production, 211, 503-520. https://www.sciencedirect.com/science/article/pii/S095965261833590X
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