Abstract:

Reverse logistics is defined as process of implementing and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related goods from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. The cost of the reverse logistics is more visible as distibution is to many points to one, unlike the forward logistics. The challenges to reverse logistics is different compared to the forward logistics because of the significance difference in forecasting, product quality, routing, inventory management and price. This  paper details about the challenges in reverse logistics and identifies the areas for improvement. The paper tries to develop a generic framework based on ERP and other IT supply chain applications to overcome some of the major challenges and optimise the process. Paper also tries to outline how the existing IT systems for the forward logistics can be reused to handle some of the aspects of the reverse logistics. Sectoral implementations of the reverse logistics methodologies are studied in detail to identify the specific challenges and solutions.