TABLE OF CONTENTS
LIST OF FIGURES
1. THE FACTORS INFLUENCING REVERSE LOGISTICS STRUCTURE…..6
2. REVERSE LOGISTICS MODEL FOR PHONE BUSINESS………………….7
3. RECYCLING PROCESS………………………………………………………..9
1. ABSTRACT
Reverse logistics is a critical key operational instrument in these days business time. This is especially critical for short-life cycle businesses like cell phone industry. In this paper, an applied model for reverse logistics which centers around cell phone industry is produced. The model consolidates both internal and external elements that influence material streams and the reverse logistics activities. The convenience of the model is exhibited through a contextual analysis, which demonstrates how an organization could make esteems from the profits by receiving this model. The model is not only giving administrators a format to breaking down their reverse logistics challenges, yet in addition fills in as a source of perspective model for comparative enterprises.
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2. INTRODUCTION
Nowadays, the world of science and technology is far more predictable than today. One of the technologies that is gaining popularity and attention is the inevitable communication technology, especially what has become the fifth factor added to life is cellphone. Many smartphone manufacturers are competing to produce new mobile phones. Consumers have many options to buy mobile phones to meet the needs of quality by considering functionality and price. However, the products that are produced must last a lifetime. Mobile phones are also likely to deteriorate over time, or according to the minds of consumers who always need new technology and usually buy a new mobile phone to occupy the old machine. However, mobile phones have to go into the elimination process eventually. When mobile phones become wasted through the efficient waste management process. The main reason for this waste management. Cellular phones are classified as electronic waste (E-Wastes) with harmful and toxic components. They are able to spread the contamination to the soil, water and environment when they are eliminated improperly (Geraldo, S & Shoou-Yuh 2010). According to Protomastro (2009), the investigating on the effects of the toxic components of mobile phones found that mobile phones consist of more than 40 elements and 20 elements of the metallic element. Some of these, up to 12 are extremely toxic and the proportion of those hazardous component in cellular phone is around 35-40 percent in total, including lead (Pb) which is used on wielding to adhere each part together.
Lead is a carcinogen. If there is concentration of lead in the blood at least 2.5 micrograms per deciliter will affect the central nervous system, immune system and affect the kidneys. This could imply that smartphone is a source of lead. In addition, the battery of the mobile phone consists of Nickel-Cadmium: Ni-Cd or Lithium-ion or Nickel-metal hydride also contains toxic heavy metals such as cobalt, zinc and copper. This heavy metal from these batteries is released into the soil, water and other natural resource. This could cause the impact to environment (EPA 2016).
Another is the recycling process that can change these wastes to become a high value raw material. One cell phone can be turned into raw materials by up to 90 percent (Geraldo, S & Shoou-Yuh 2010). For example, a campaign to recycle used mobile phones across the world. Nokia Loves Earth states that one mobile phone is coming through. Recycling process contains 80 percent recyclable material consisting of most plastic materials. The remaining is copper, ceramics, aluminum, gold and other non-metal materials. All plastic, metal and ceramic parts are recyclable. If a cell phone is recycled, 1 million units will reduce carbon dioxide emissions by up to 12,585 tons. These materials will be processed into components of bicycles, kettles, medical devices, musical instruments, and even rings which made of platinum are also the product of recycling old cell phones. In addition, the remaining 20 percent is used as a fuel for recycling. The remaining pieces are crushed into pieces for building material or construct the road. For these reasons, reverse logistic is one useful tool to help the organization to decrease the impact on environment and minimize the operation cost.
3. LITERATURE REVIEW
Reverse logistics is the way toward exchanging products from their run of the mill destination through a reverse logistics framework to capture esteem, or appropriate transfer (Roger and Tibben‐Lembke 2011). Consequently, a reverse logistics framework includes the administration of the stream of items or parts bound for remanufacturing, reusing, or transfer by viably utilization of assets (Dowlatshahi 2000). Conversely, moving products from their purpose of starting point toward their last goal has been the focal point of conventional logistics frameworks for long time. In such procedures, makers influence merchandise and afterward to circulate them toward focused client fragments (possibly through retailers). The end clients take these merchandises and devour them until the point that the time they are never again helpful, from the clients’ viewpoint with oldness rates on the ascent the inquiry regarding what the client at last does with this end-of-life (EOL) item turns into an issue that has both ecological and financial ramifications (Blumberg 1999).
In fact, it is declared that reverse logistics or reverse appropriation is the “development of products from a shopper towards a maker in a channel of dispersion” (Murphy and Poist 1989). The client (now playing the job of the maker) has a completed decent to advance toward a purchaser who are currently the shoppers. The calculated streams would pursue yet again in reverse request. This perspective of reverse logistics seems to give a basic answer for the issues related with the advancement of a reverse logistics framework. While there is bolster for an association between in general logistics capability and the execution of earth mindful logistics, most logistics frameworks stay poorly prepared to deal with item development in a reverse channel (Alan 1998). Without a doubt, recyclable material does not essentially stream in reverse through a similar channel.
The dominant part of writing managing reverse logistics is both clear and episodic. Carter and Ellram (1998) found that the vast majority of the scholastic writing just inspects generally limited parts of reverse logistics. In spite of the fact that the reverse logistics writing gives a fantastic structure to building up a reverse logistics framework and its consequent strategies. It neglects to sufficiently depict the difficulties that exist when managing these variables in “this present reality”. That is, a top to bottom comprehension of the unpredictability of the elements that influencing the reverse logistics exercises must be tended to and ought to be taken into contemplations. In any case, they are deficient in the logistics writing. To put it plainly, there is no nonspecific model for various reverse logistics applications, and they are distinctive case by case in various businesses.
This investigation endeavors to address this deficiency by analyzing how these key variables effect on the effective plan and usage of a reverse logistics framework for EOL cell phones, which is a genuine utilization of reverse logistics. Points of interest will be talked about in later areas. A case will be utilized to show the handiness of the model.
4. CONCEPTUAL MODEL
Dowlatshahi, Ellram and Carter distinguished particular interior and outer elements that effect the capacity to effectively outline and execute such a framework. These investigations took a more comprehensive view towards reverse logistics, and it is this view towards reverse logistics that fills in as the establishment for this examination. Specifically, the examination uses an applied model of components influencing reverse logistics frameworks to build up a business procedure show particularly for cell phone industry. It is their models fill in as the premise for the present examination of reverse logistics issues on cell phone industry as portrays in Figure 1.
Figure 1: The factors influencing reverse logistics structures
Dowlatshahi talked about the idea of reverse logistics and its significance as a gainful and manageable business technique. He distinguished and depicted the reverse logistics framework writing and laid out keys to effective plan and utilization of these frameworks. Specifically, his examination concentrated on setting up inside vital and operational issues that may require thought in reverse logistics frameworks. According to Ellram and Carter (1998) directed a broad diagram of the reverse logistics writing. They coordinated this material with structure for similar investigation built up in the advertising writing to build up a model of the outside components influencing reverse logistics. Their examination used the general writing on reverse logistics to create suggestions and a model of the outer drivers and limitations to reverse logistics programs.
Figure 2 is an expanded variant of Figure 1 that demonstrates all the unmistakable kinds of substantial, outer elements that influence a cell phone organization’s reverse logistics exercises also as analyzing inside centered key and operational components should be considered while executing a reverse logistics framework. This examination of both interior and outer factors specifically reacts to Carter and Ellram’s affirmation that both ought to be inspected in future research concentrating on reverse logistics.
Figure 2: Reverse logistics model for phone business
5. CASE STUDY
The contextual analysis organization in this paper is a world driving cell phone organization, which runs its reverse logistics framework as the proposed one, bringing about a smoothened return taking care of task. Returned items will be first experienced procedure of investigation, trailed by arranging and attitude, and a progression of significant worth including exercises, giving profitable yields, for example, reused material and recuperated items. The organization actualizes its reverse logistics exercises centralizedly as all the returned items are gathered at retailers, at that point transported to return community for preparing. For this situation think about, its reusing map and concentrated framework, which highlight its reverse logistics stream, will be examined.
5.1 RECYCLING MAP
The organization’s reusing map is appeared in Figure 3, which portrays how the organization deals with its regressive material stream. The basic goal of the stream is to get the most astounding worth feasible for the items as per any lawful confinements or requirements forced by the seller. Keeping in mind the end goal to achieve this issue, the accompanying advances must be a piece of its reverse logistics framework:
- Gate-keeping: scaning which product should be selected to enter to reverse logistic process.
- Disassembly: dismantling the selected product before executing reverse logistic process.
- Sorting: classifying and categorizing the component of mobile phone.
- Disposition: distributing the parts to production line to manufacture new products or desired destination.
Figure 3: Recycling process
5.2 CENTRALIZED SYSTEM
There is an assortment of ideal models that can be utilized for a reverse logistics framework, yet the vast majority of them can be depicted in connection to the accompanying two limits: concentrated and decentralized. The contextual analysis organization, which comprises of consideration communities for reusing and arranging forms, has a place with the previous. In a concentrated framework, all items in the reverse logistics pipeline are conveyed to a focal office, arranged, and conveyed to their definitive goals. This combination strategy makes the biggest conceivable volumes for every client, which prompts higher incomes. Representatives create aptitude in specific zones and can reliably locate the best goal for every item. In actuality, all choices with respect to the air of items are made at retail stores in a decentralized framework. Some transportation expenses can be dodged on the grounds that the items are not all taken to a focal handling focus before the mien choices are made. Nonetheless, in the meantime, a decentralized framework will probably expand the aggregate transportation expenses of air, since all items bound for a specific optional market firm are scattered over the organization’s system of stores, and either specifically or in a roundabout way, the retailer must pay to gather the merchandise.
The greatest impediment of a decentralized framework is that the firm will probably get less pay from the optional showcase firms. There are two purposes behind this. To begin with, every area will have a substantially littler amount of a given thing, and littler amounts don’t expedite the most astounding costs the auxiliary markets. Besides, the people accountable for sortation at a specific store may not create sufficient involvement with a specific thing to take in the best methods for discarding the thing, which implies bring down reverse logistics receipts for the retailer.
A standout amongst the most vital exercises inside a reverse logistics framework is arranging. Clearly, deciding the best channel for discarding the item is of basic significance in boosting incomes from the items in the reverse logistics framework. Door keeping is likewise imperative in lessening the framework costs. By and large, an extensive expense is transportation. On the off chance that the item will be discarded, it is smarter to find this issue as right on time as could be expected under the circumstances, to forestall playing out extra advances and causing the superfluous extra expense.
6. CONCLUSION
The proposed reverse logistics demonstrate for cell phone industry is based on the calculated model of Ellram and Carter, joining with the material created by Dowlatshahi. These materials fill in as the reason for the current examination of reverse logistics issues on versatile telephone industry. Contrasting between the theoretical model Ellram and Carter, and the proposed demonstrate in this while then again, offering certain advantages to the end clients. The proposed demonstrate represented in this paper is extensive in that it demonstrates all the unmistakable sorts of unmistakable, outer components that influence a company’s reverse logistics exercises and in addition looking at inside centered key also, operational variables should be thought about when actualizing a reverse logistics framework. This examination of both inner and outer factors specifically reacts to Ellram and Carter ‘s attestation that both ought to be analyzed in future research concentrating on reverse logistics. Since the proposed demonstrate is devoted to cell phone industry, this is additionally the impediment of the model. Despite the fact that it is general that it is likewise pertinent to a few businesses, there are confinements to the utilization of specific ventures. In this model, reused materials incorporate plastics, metal, and glass. Enterprises that deliver merchandise with materials other than these three components may find that they need to adjust the proposed demonstrate before embracing it. While reused materials are not great, or the reusing procedure isn’t financially savvy for specific enterprises, says, the article of clothing industry, their sole manner goal is to restore or reuse the items. Once more, the proposed show isn’t pertinent for them. The significant spotlight is on the best way to sum up the proposed demonstrate through an inside and out comprehension of the logistics forms get included.
7. RECOMMENDATION
- Provide the facilities for returning the old product.
- Propose the promotion or to convince the customer to return goods
- Improve and research new components which can be recycle and unharmful on the environment.
8. REFERENCE LISTS
- Alan, K 1998, Strategic Logistics Management, Supply Management, vol.3, no. 2, pp.42-43, Proquest Central.
- Blumberg, DF 1999, ‘Strategic examination of reverse logistics and repair service requirements, needs, market size, and opportunities’, Journal of Business Logistics, vol. 20, no. 2, pp. 141-159, Proquest Central
- Carter, C & Ellram, L 1998, ‘Reverse logistics: a review of literature and framework for future investigation’, Journal of Business Logistics, vol. 19, no. 1, pp. 85-102, Proquest Central.
- Dowlatshahi, S 2000, ‘Developing a theory of reverse logistics’, Interfaces; Linthicum, viewed 2 October 2018, vol. 30, no. 3, pp. 143-155, Proquest Central.
- Environmental Protection Agency (EPA) 2016, Batteries, viewed 1 October 2018, <https://archive.epa.gov/wastes/conserve/tools/stewardship/web/html/batteries.html>.
- Geraldo, S & Shoou-Yuh, C 2010, ‘Cell phone recycling experiences in the United States and potential recycling options in Brazil’, Waste Management, Vol.30, pp.2278-2291, viewed 27 September 2018, Science Direct database.
- Murphy, PR & Poist, RP 1989, ‘Management of Logistical Retromovements: An Empirical Analysis of Literature Suggestions’, Journal of the Transportation Research Forum, vol. 29, no. 1, pp. 177-184.
- Protomastro, GF 2009, ‘Electronic Scrap Management in Argentina’, Academia, blog post, viewed 27 September 2018, <https://www.academia.edu/6146023/E_Scrap_Management_in_Argentina?auto=download>.
- Roger DS & Tibben‐Lembke, R 2011, ‘An Examination of Reverse Logistics Practices’, Journal of Business Logistic, viewed 2 October 2018, vol. 22, no. 2, pp. 129-148, Wiley Online Library.
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