Phd thesis on reverse logistics
The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Bank transactions, airline tickets, etc. " Experience in the UK suggests that most new entrants to the e‐grocery market opted for the fulfilment model prematurely. Catalogue mail order companies have had long experience of delivering a broad range of merchandise to the home, while some major High Street retailers have traditionally made home delivery a key element in their service offering. However, the vast phd thesis on reverse logistics increase in the cost of transporting products makes efficiency absolutely vital. As a “pure‐player” in the e‐grocery market, Webvan did not have phd thesis on reverse logistics an established chain of retail outlets and would have had to form an alliance with an existing retailer how to write a grad school application essay to adopt the store‐based model. Webvan, for example, was planning to build a network of 26 new automated warehouses, at a cost of approximately $35 million each, to provide e‐grocery delivery across the USA. Similarly, supply chain integration can be achieved by establishing on‐going relationships with trading phd thesis on reverse logistics partners throughout the supply chain. Walters and Rainbird (2004) conclude that if companies focus too much on the cost implications of SCM, then they over emphasise cost efficiency at the expense of meeting consumer demands (i. It is likely that, for the foreseeable future, collection and delivery points strategically located in or around retail outlets, transport terminals and petrol stations offer the best prospects of commercial viability. Some important constraints have to be satisfied: fork and load beams resistance to bending and proper placement of sprinklers. 2 per cent of retail expenditure) to £19. (2008) provides an example of the approach. Basing home delivery operations at existing shops allows retailers to improve the utilisation of their existing assets and resources. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Stacker cranes). This also gives online shoppers access to the full range of products available in a supermarket to which most of them will be accustomed. As Table II suggests, there are differences between supply and demand chain processes and approaches. All recognise the links between supply and demand chain concepts. (1999) argue that the improvements in the use of IT to capture “real time” data means less reliance on forecasts and creates a virtual supply chain between trading partners. The linking together of previously separated activities within a single system was required. The last few years has witnessed an unprecedented downturn in the economy after a decade of exceptional growth. Sainsbury, Somerfield and Asda all set up pick centres and closed them down within a few years. Retail property can be used more intensively and staff shared between the store and online operations. First, it is substantially increasing the volume of goods that must be handled, creating the need for new DCs and larger vehicle fleets. They suggest that demand chains, which focus on demand, customers and markets and current and potential products and services are vital for businesses, including retailers. By supplying orders mainly from its existing shops Tesco dominates the UK internet grocery market, is developing similar businesses amongst its international portfolio and has established itself as the world's largest online grocery retailer (and probably its most profitable). Harrison et al. An indication of the growth in sales is given by Verdict, which show that the UK market has grown from £362 million in 1998 (0. As a consequence, demand is slackening and altering. Introduction of supply chain management and efficient consumer response (ECR). Efficiency. Second, many online retailers are serving customers from different socio‐economic backgrounds from the traditional mail order shopper. If demand is less volatile and weakening, then it could be argued that efficiency could be less of a concern. Reverse logistics stands for all operations related to the reuse of products and materials. For example, Tesco is currently picking and delivering an average of 250,000 such orders every week. Walters (2006a, b) presses the demand chain argument, while Canever et al. As retail sales, other estimates such as those from Verdict Research (2008) deal only with physical products and may be more representative. The fluctuating price of fuel and the collapse of the pound have led to rises in prices of many products at a time when disposable income is being severely constrained. We illustrate these approaches and the logistics transformation on which they phd thesis on reverse logistics are based below, through examples from the grocery and phd thesis on reverse logistics fashion sectors. As supply chains have become complex webs and networks with tiers of suppliers to be managed then phd thesis on reverse logistics the business tendency to manage this complexity is to focus on cost efficiency. If money can be saved by better load‐fill or cleaner driving or by not having so many voids or errors, then the overall effect will be beneficial. The problem of outsourcing typically arises at this level: the nodes of a supply chain are very rarely owned by a single enterprise. Here, we intend SCM to mean incorporating a demand orientation and balance, and to include appropriate lean and agile principles. Although a minor recovery is possible in 2010, the negativity surrounding economies generally make it difficult not to focus on efficiency in its broadest sense. During the 1990s, this focus on so‐called “lean production” was challenged in the USA and UK, because of an over reliance on efficiency measures (“lean”) rather than innovative (“agile”) responses. 7 per cent of retail sales). It is now generally acknowledged that at the present level of e‐grocery sales in the UK, the store‐based distribution model, pioneered by Tesco, is the most cost effective. The final link in the agile supply chain is the network where a confederation of partners structure, co‐ordinate and manage relationships to meet customer needs ( Aldridge and Harrison, 2000). This requires a major reverse logistics operation comprising the retrieval, checking, repackaging and redistribution of returned merchandise. An agile supply chain is highly responsive to market demand ( Christopher, 2000). Fewer than half of these warehouses were set up before the company went bankrupt in 2001. G. Agility plays to US strengths of entrepreneurship and information systems technology. 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. Reverse logistics denotes all those operations related to the reuse of products and materials. While some figures of online retail sales should be treated with caution in that some consultancies group digital delivered goods, e. In recent years, as the innovation took off, there has been a steady increase in online sales, at a time when recession has impacted upon high street shopping. Configuration at the level of the distribution system concerns primarily the problem of location of the nodes in a geographic space and distribution of capacity among the nodes. Typically, around 30 per cent of non‐food products delivered to the home are returned to e‐tailers (in contrast to 6‐10 per cent for “bricks and mortar” retailers; Nairn, 2003). As they live in different neighbourhoods, the geographical pattern of home delivery is changing. They must typically pick an order comprising 60‐80 items across three temperature regimes from a total range of ten‐25,000 products within 12‐24h for delivery to customers within one to two hour time‐slots. Online shopping is, nevertheless, imposing new logistical requirements. Agility as a concept was developed in the USA in response to the Japanese success in lean production. The service dimensions). Online shopping for non‐food items has demanded less logistical innovation. By sharing information, process integration takes place between partners who focus upon their core competencies. They appear to strike a reasonable balance between the conflicting demands of customer convenience, delivery efficiency and security. E. Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between supplier and consumer: To achieve maximum effectiveness of supply chains, it became clear that integration, i. The opposite of reverse logistics is forward logistics. The first may be referred to as facility location (with the special case of site selection) while the latter to as capacity allocation. Third, online shoppers typically have high logistical expectations, demanding rapid and reliable delivery at convenient times ( Xing and Grant, 2006). Walters and Rainbird (2004) argue that firms will be better placed if they phd thesis on reverse logistics combine their supply chain capabilities with demand‐chain effectiveness. Several British supermarket chains, such as Sainsbury, Asda and Somerfield, as “bricks and clicks” retailers, had the option of pursuing store‐based or pick‐centre fulfilment and opted initially for the latter. Tesco, by contrast, opted for the store‐based model. 5 billion in 2008 (6. Their experience is described below. Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: dimensioning rack cells, choosing a palletizing method (manual or through robots), rack dimensioning and design, number of racks, number and typology of retrieval systems (e. Companies have had, therefore, to review their internal organisation to eliminate duplication buy a college research paper and ensure that total costs can be reduced, rather than allow separate functions to control their costs in a sub‐optimal manner. It is possible to pool retail inventory between conventional and online markets, improving the ratio of inventory to sales. The main advantage of store‐based fulfilment is that it minimises the amount of speculative investment in new logistical facilities for which future demand is uncertain. They can also integrate flows of B2C and B2B orders to achieve an adequate level of throughput. G. Others might argue that effective and efficient supply chains by definition include demand‐chain considerations. Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the racks layout inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, same reasoning for sorting when designing the conveyor system or installing automatic dispensers. E. Within home shopping systems, whether catalogue – or internet based, there is a large flow of returned product. Supply how to write a reflection essay on death and dying chain management (SCM and within this, ECR) provide a management framework within which retailers and suppliers can more effectively co‐ordinate their activities. help with writing artist essay introduction The greatest logistical challenges probably face companies that provide a grocery delivery service to the home. Having improved the efficiency of their own logistics operations, many retailers have begun to collaborate closely with suppliers to maximise the efficiency of the retail supply chain as a whole. New logistical techniques have had to be devised to support e‐grocery retailing on this scale. The underpinning technologies for SCM and ECR have been well established in the UK, so conditions have been ripe for such developments.