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SDM/U4 Topic 3 Forward and Reverse Logistics

Forward Supply Chain

System whose constituent parts includes material suppliers, production facilities, distribution services and customers linked together by the feed forward flow of materials and feedback flow of information.

Characteristics:
A. Upstream-Convergent
B. Downstream-Divergent
C. Flow in forward direction
D. Value addition for the product takes place
E. Inventory is kept in most of the nodes
F. Customer demand drives the flow speed
G. Material handling and Transportation are done with utmost care.

Functions:
A. Meet the demand
B. Value provider
C. Image enhancer
D. Provides competitiveness
E. Support new product development
F. Backbone of Marketing

Reverse Supply Chain

Reverse supply chain or reverse logistics is the series of activities required to retrieve a used product from a customer and dispose of it properly or reuse after processing.

Characteristics
A. Convergent in nature from end-user to manufacturer
B. Reverse flow of used products
C. Supply driven
D. Relatively slow movement
E. Value declines with time while moving upstream
F. Very small value addition in some cases
G. MH and transportation are not with care
H. Inventory available in different nodes

Functions
A. Environmental legislations
B. Economic value from returns
C. Green Image
D. Material Resource constraints like lead and other precious resources

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