Reverse Logistics:
Reverse Logistics is the logistics process of removing new or used products from their initial point in a
supply chain, such as returns from consumers, over stocked inventory, or outdated merchandise and redistributing them using disposition
management rules that will result in maximized value at the end of the items'' original useful life. A reverse logistics operation is considerably different from forward logistics. It must establish convenient collection points to receive used
goods from the final customer or remove
assets from the supply
chain so that more efficient use of inventory / material overall can be achieved. It requires extra care while packing and storing, to ensure that, the goods which still have certain value are not damaged due to carelessness. It often requires the development of a transportation mode that is compatible with the existing forward logistic system. Disposition can include returning assets into inventory pools or warehouses for storage, returning goods to the original manufacturer for reimbursement, selling goods on a secondary market, recycling assets, or a combination that will yield maximum value for the assets in question. 3PL: Third Party Logistics means outsourcing the Supply Chain Management (SCM). Third party logistics describes businesses that provide one or many of a variety of logistics-related services. Types of services would include public warehousing, contract warehousing, transportation management, distribution management, freight consolidation. This may also include the 3PL provider’s USP, such as documentation of required forms like customs clearance, also improved services in tracking and tracing of the cargo, management and handling of the cargo and door to door delivery of the cargo from the pick up point to the destination point, and also integrated reverse logistics, all of which many Logistics companies provide its clients with. 4PL: Different from the 3PL providers, 4PL use technology, process and people to manage the business. The 4PL is a Business Process Outsourcing (BPO) provider. Business process outsourcing (BPO) is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service. For instance, an insurance company might outsource their claims processing program or a bank might outsource their loan processing system. Other common examples of BPO are call centres. Supply Chain Management (SCM): The oversight of materials, information, and finances as they move in a process from supplier, to manufacturer, to wholesaler, to retailer and to the consumer is called the Supply Chain Management Service. Supply chain management involves coordinating and integrating these flows both within and among companies. This is the ultimate goal of any effective supply chain management system to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based application service providers (ASP) who promise to provide part or all of the SCM service for companies who rent their service.
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