Food and beverage reverse logistics

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Week 8: Term Project Paper

Write your final research topic paper.

This outline must follow the preceding format as far as section headings.

This final paper should be between 8 to 10 pages for the content, not counting the title page or the reference page.

Submission Instructions: (Do not use Wiki as a source). Save assignment as: student last nameRLMT307WK8Final

•Written communication: Written communication is free of errors that detract from the overall message.
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•Length of paper: typed, double-spaced pages with no less than an eight page paper.
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Running Head: RFID AND REVERSE LOGISTICS Food and Beverages Reverse Logistics Larry Curtis RLMT 307 Prof. David Young 07 April 2018 1 RFID AND REVERSE LOGISTICS 2 Food and Beverages Reverse Logistics Abstract This study is aimed at the examination of reverse logistics in the food and beverages production life cycle. Reverse logistics refers to the situation where products are returned, remarketed, refurbished and exchanged. This can happen if the consumers are not satisfied with the quality of the products delivered to them, if they are expired or damaged. Reverse logistics has been adapted by industries to avoid wastage and control future demands. It also helps in protecting the environment. Reverse logistics began long ago since the beginning of trading. The forward supply chain has been the most eminent type of chain in the market but with the emergence of the reverse logistics that ensures refunds, returns and recalls the practice has since then been picked widely. In the food and beverage industry, damaged and expired products that are considered unsalable make up the huge percentage of the product returns. Reverse logistics of most packaged beverage products like bottles and disposable cups have borne large profit margins in the market for many organizations mostly the ones operating on the packaging sector. Therefore, the significance of reverse logistics in food industries is to ensure consumers get quality and safe products. It also aims at reducing food wastage throughout the food supply chain and improve the value of returned goods. 3 RFID AND REVERSE LOGISTICS Introduction Reverse Logistics was initially published by James R Stock by the council of Logistics Management. It majorly focuses on three components which is to reuse, remanufacture and to recycle. Its major aim in food and beverages industry is to avoid wastage of food and to provide safe and quality products to consumers without posing a threat to both the environment and the health of human beings. In simple terms, it deals with moving products in the opposite direction to that of supply chain. Reverse logistics strategies differs widely from the forward logistics and companies have a tendency of overseeing the reverse logistics and putting more effort and the resources to forward operations without seeing the value that they can generate out of reverse logistics. Production of quality food and beverages to consumers that possess no health risks to human beings or the damaging of the environment in any way has seen the importance of the inclusion of reverse logistics on food and beverages production. Food and beverage companies that put the same emphasis on the reverse logistics as of the ones they put on forward policies not only reduce costs but also get a chance to discover the main causes of the product returns (Bai & Sarkis, 2013). Such tracking helps to improve their produce from all retail levels since the first step to solving a problem is by first understanding what is the root of the problem. Literature Review Reverse Logistics in Food and Beverages Industry Food and beverage safety is an essential part in the production of goods in that any slight changes on the composition can either create harm or enhance human life. Reverse logistics makes room for discovery on what changes should be made to make the produced products much better for human consumption and also bearing less or no threat at all to the environment RFID AND REVERSE LOGISTICS 4 (“Food Logistics”, 2010). In an example of horsemeat scandal which happened on the 15th of January 2013, the Ireland Food Safety Authority found traces of horse meats in beef burgers and Tesco supermarket had to withdraw all beef burgers despite the fact that horsemeat did not bear any health risks so as to gain customer trust during that time of crisis since reverse logistics works best at these times. Challenges in the Implementation of Reverse Logistics Despite the fact that reverse logistics has several advantages and benefits, its implementation had challenges. First, some industries fail to comply with the directives and feel pressure to implement reverse logistics into their businesses. Secondly, since reverse logistics deals with the returning of goods, the process of sorting these returned goods, collecting them and repairing them becomes quite tedious (Bolat, 2014). Moreover, consumers will lose trust and confidence in these products which is a setback to the firm. Effect of food loss on the environment The advancement in technology used in food processing industries creates pollution on the environment. Research shows that carbon dioxide emissions that lead to greenhouse effect are greatly contributed by food wastage and improper way of handling food waste. This is where reverse logistics come in hand. Applications and Essence of Reverse Logistics in Food and Beverages. Reverse logistics in Food and beverages industries entails the process of reusing, recycling and remanufacturing of returned products. In so doing, it saves the company the cost of having to acquire new raw materials (Muelas, 2014). Consequentially, the firm increases the profit margin and minimizes on cost. It helps in the long term growth of the company. Further, it minimizes pollution of the environment. Cost minimization and optimization is maximized to RFID AND REVERSE LOGISTICS 5 full capacity with reverse logistics since a great incurrence of about 40 to 60 percent cost cuts is experienced with re-manufactured products with a further 85 percent energy save in production compared to starting the manufacturing process from scratch a great example is with a beverage bottle, it is much easier and cheaper to recycle a bottle rather than remodeling and manufacture (Rachel, 2016). The reverse policies on products make creates a competitive advantage on finalized food and beverages products since most of the companies will focus on ensuring less or no returns at all hence production of quality products in the market that creates a lot of competition in the market. Findings Although reverse logistics might be a recognized practice by organizations, assigning of a single individual with several responsibilities with reverse logistics being inclusive tends to shake the level of interest in this practice since in most cases the individual’s interest and attention will be shifted to the other responsibilities he or she has. On the other hand, an interest over reverse logistics in food and beverage companies has grown in that some titles like Vice President of reverse logistics have been created to manage a team that is put in charge to handle these logistics and minimize returns of products produced by organizations ensuring that the major KPI’s of food safety, quality and customer satisfaction are met keeping a product competitive and relevant in the market. Data capture and information handling is a key element for reverse logistics since on many occasions poor data measurement and absence of appropriate information capturing are a major concern in return policies. With incorporation of information technology in reverse logistics contributes in reducing product returns (Bai & Sarkis, 2013). RFID AND REVERSE LOGISTICS 6 Recommendations for future research Further research should clarify the relationship between reverse logistics and product life cycle (Bai & Sarkins, 2013). Individuals should also be asked on their personal perspective and compared to that of food and beverages processing industries. Conclusion For a successful implementation of reverse logistics at food and beverages industries, the firm should create awareness to its employees to ensure that they understand the reverse and logistics practices. The performance of food reverse logistics is dependent on the physical nature of the products, cost, and legislation and how data is managed in the firms. Reverse logistics has significance on both environmental and economical aspect in any firm. As reverse logistics is being adapted by several industries that are going global, the quality of products has been enhanced. Besides, reverse logistics on food and beverage has a reliance on the perishability of the product, thus, short life products need proper logistic operations. Reverse logistics on food and beverages products bear more economical and environmental significance with recycling process and lays a foundation for the completion of products in the market that extends it to companies being forced to provide quality goods that meet customer needs and expectations to maintain their relevance in the industry. Reverse logistics on food and beverages is a practice that is slowly being picked by companies to ensure their sustainability and provide quality and reliable products. 7 RFID AND REVERSE LOGISTICS References Bai, C., & Sarkis, J. (2013). Flexibility in reverse logistics: a framework and evaluation approach. Journal of Cleaner Production, 47, 306-318. Bolat, B. (2014). Proposal of stochastic programming model for reverse logistics network design under uncertainties. International journal of supply chain management 3, 86-103. Food Logistics. (2010). Reverse Logistics Moves Forward. Retrieved March 23, 2018, from https://www.foodlogistics.com/ Marisa, P. (2015). Reverse logistics: A review of case studies. Econometric institute report, 5064. Muelas, E. (2014). Integrating forward and reverse logistics network for commercial goods management. International Journal of Production Management and Engineering, 25-32. Rachel, B (2016). How Food Industry Is Contributing to Reverse Logistics. Reverse Logistics Magazine. Edition 82. Retrieved March 23, 2018, from http://www.rlmagazine.com Vijayan, G., Hirawaty, K., & Zainal, A. (2014). Sustainability in food retail industry through reverse logistics. International Journal of Supply Chain Management, 11-23.
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