THE REVERSE LOGISTICS FRAMEWORK: RETURNS MANAGEMENT IN THE DIESEL CASE

Abstract

The present work analyses the return management process in a real business case, namely Diesel. Reverse Logistics is a relatively recent matter: despite the fact that return of products or material to the manufactures has always existed, its definition and scope are still evolving since the end of the twentieth century but it is clear that reverse logistics has become a key competence in the current supply chain best practice. The first two chapters outline the background of the thesis topic from a theoretical point of view: definitions, purpose and delimitations are mentioned. The third and the fourth chapter deal with the subject at a practical level. After having outlined how the company handles the reverse process, we have closely investigated the reasons why the goods return. We have used available data to calculate the incidence rate of each return category and made a comparison in the short run to understand whether the process has been smooth or it has shown critical changes. By observing the best practices, we start defining the main goal that Diesel shall pursuit in order to measure its progress in this field. Then, we have outlined what Diesel is doing and could do to improve and maximize its performance in the reverse logistics field. This conceptual framework of activities, decision variables and performance indicators will raise awareness on the fact that reverse logistics can no longer be defined as the mere opposite flow of the forward logistics. Finally, the Reverse Logistics management requires correct information and adequate procedures in order to achieve the desired level of efficiency and effectiveness: managers working in reverse logistics need to take better and informed decisions.