Reverse Logistics in Indian Automobile Industry
Reverse Logistics in Indian Automobile Industry
Reverse Logistics is a process in which a product moves in reverse through the supply chain network. It may be used for the purpose of recapturing value of a final product or for even proper disposal. It may also be termed service that the process of planning, implementing and controlling the efficient and cost effective flow of raw materials, in-process inventory, finished goods and related information, from the point of consumption to the point of origin, for the purpose of recapturing value of proper disposal.
While the primary sectors involved in making use of this process may be classified as the Pharmaceutical Sector, Retail sector, Automobile sector and the Electronics sector, we are mainly about to focus all our attention to the practices of ‘Reverse Logistics’ in the Indian Automobile Industry.
To truly know why the whole idea of ‘Reverse Logistics’ assumes significance when considered in terms of the Automobile Industry, first we need to think of the nature of the final product i.e. Automobiles or Vehicles as we call them. The parameter one needs to look at is the life cycle of the product and what happens to the final product once it reaches the end of its useful life. By its very nature, it’s difficult to predict the life cycle of the final product. This is because; it is highly susceptible to the nuances of the human subjectivities. But even if we are unable to predict the duration of the life cycle, we have definitely something figured out for us. What I am referring to is a common observation that even if the vehicle (Here we will be primarily focusing on the flagship product, an automobile) becomes defunct and is no more suitable for use, the same rule doesn’t apply to the metal (that is primarily Iron) that it has been made from. The Iron that has been used in the manufacturing of a vehicle stays in pretty much the same and reusable condition through a considerable
Reverse Logistics is a process in which a product moves in reverse through the supply chain network. It may be used for the purpose of recapturing value of a final product or for even proper disposal. It may also be termed service that the process of planning, implementing and controlling the efficient and cost effective flow of raw materials, in-process inventory, finished goods and related information, from the point of consumption to the point of origin, for the purpose of recapturing value of proper disposal.
While the primary sectors involved in making use of this process may be classified as the Pharmaceutical Sector, Retail sector, Automobile sector and the Electronics sector, we are mainly about to focus all our attention to the practices of ‘Reverse Logistics’ in the Indian Automobile Industry.
To truly know why the whole idea of ‘Reverse Logistics’ assumes significance when considered in terms of the Automobile Industry, first we need to think of the nature of the final product i.e. Automobiles or Vehicles as we call them. The parameter one needs to look at is the life cycle of the product and what happens to the final product once it reaches the end of its useful life. By its very nature, it’s difficult to predict the life cycle of the final product. This is because; it is highly susceptible to the nuances of the human subjectivities. But even if we are unable to predict the duration of the life cycle, we have definitely something figured out for us. What I am referring to is a common observation that even if the vehicle (Here we will be primarily focusing on the flagship product, an automobile) becomes defunct and is no more suitable for use, the same rule doesn’t apply to the metal (that is primarily Iron) that it has been made from. The Iron that has been used in the manufacturing of a vehicle stays in pretty much the same and reusable condition through a considerable
References: - 1. http://www.aftermarketsuppliers.org 2. http://www.commodityonline.com 3. http://articles.economictimes.indiatimes.com 4. http://www.researchandmarkets.com/reports/548736/