Supply Chain Hero?
April 2, 2007 by Splatty
Filed under Supply Chain Management
Want to be a supply chain hero? Then, according to an article I read on Supply and Demand Chain, look to reverse logistics.
Go on. Be a hero! As a supply chain officer or executive, you can immediately go to your senior management team and confidently assert that at least six percent — and often as high as 35 percent (depending on your industry) — of top-line company revenue is sitting dormant on loading docks or in warehouses, the victim of a broken or non-existent returns management process. That’s inventory you’ve already paid for.
For many companies, realizing revenue from this latent inventory is difficult for two reasons. First, most companies are forward-focused and consider returns a nuisance or not worth the trouble. Second, many senior executives are simply not aware of the magnitude of the problem and therefore have not sought a reverse logistics solution. Herein lies the opportunity for supply chain officers and executives to bring good news and opportunity to senior management in the form of a solution to a problem they might not know exists.
Read the complete article for potential areas of focus in your reverse logistics processes.
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