Solution
Anju Lata answered on
Jul 08 2020
Running Head: Dealing with Reverse Logistics
Dealing with Reverse Logistics 9
Dealing with Reverse Logistics in the Food Industry
Taylor King
RLMT307
Week 8
Final Term Project Pape
American Military University
Abstract
The paper illustrates
oad dealings with Reverse Logistics (RL) in Food and Beverage Industry. The Reverse Logistics refers to the process of backwardly moving the flow of goods for the sake of proper disposal, capturing value, refu
ishing and remanufacturing activities. It is an apparent concept in Supply Chain Management to achieve additional competitive advantage for profitability, sustainability, and value. The Reverse Logistics aims to reduce the wastage and encourage reuse. Food and Beverage Industry faces high food loss, consequently leading to ca
on emission, environment degradation, and production of greenhouse gas. The applications of Reverse Logistics in Food Processing Sector will help deal with increasing food demand and also protect the ecosystem. In this paper, the stages of Reverse Logistics (RL), process and drivers are also analyzed.
Keywords: Food processing Industry; Reverse Logistics; Environmental Degradation; Food loss.
Dealing with Reverse Logistics in Food Industry
Introduction
Reserve Logistics (RL) is described as the movement of food and beverage products in the opposite direction of the supply chain (Sathiyagothai & Saravanan, 2017). The purpose of this movement is to remake or depose the value of the product for proper disposal.  The products are returned by the consumers due to several reasons as expiry of life, damage, recall or poor quality of the products. This is also called as food loss or food waste. Food loss may happen at any stage of the supply chain but quantity differs. According to Food and Agriculture Organization of the United Nations, (2011), generally 20% food gets wasted during harvest stage, 40% after the harvest stage, and remaining 40% food gets waste on reaching the customers and retailers. This backside flow of food and beverage product essentially reduces the smooth progression of logistic operations. The impact of food waste on the atmosphere increases the greenhouse gases, atmosphere digression and increases pollution. Reverse logistics reduces food waste in the food processing industry.
Application of Reverse Logistics
The Reverse Logistics of food involves reuse, remanufacturing and recycling of existing products into new products which have value in the market.
Reverse logistics (RL) starts with the decision of the purchaser or end user (CIAA,2011). When any food and beverage product reaches at the end of its life, it requires being disposed off/destroyed. These outdated items may be returned to the vendor, resold on discount or donated to the charity and company can earn some tax deduction.
Generally, a product can be returned by the consumer for various reasons as being contaminated, not meeting advertisement conditions and wrong size or due to change of mind that now the product is no longer required by him at all. Reverse logistics starts from consumer and ends with producer and also becomes important due to increasing pressure of shareholders, consumers, employees, suppliers, government agencies and public atmosphere due to environmental issues, legislative and consumer expectancy. The driving forces (economics, legislation, and corporate citizenship) contribute to the company’s decision to adopt reverse logistics.
Reverse logistics encourages reuse, re-manufacturing, recycling of material, increasing efficiency, reducing the cost of accurate raw materials and thus increasing margins of profit in the food and beverage industry. It helps to reduce atmospheric pollution, increase profit margin and is advantageous for long-term growth of Food companies.
In Food Processing Industry, multiple stages of food loss during the food processing are harvesting, food collection, thrashing, sorting, drying, winnowing, packing, transporting and storing (Vijayan et al,2014).
The activities of retrieving the food from the customer for the sake of proper disposal and capturing value involve the collection, selection, combined inspection, reprocessing, redistribution and proper disposal. The networks of Reverse Logistics have certain characteristics based on the coordination between two markets, decisions related to return disposition, postponement, uncertainty in supply and speculations. Reverse logistics requires specialized equipment and more distribution points, they are hard to pre-estimate, the packaging gets damaged, and the pricing is...