Best Practices in Green Reverse Logistics

Organizations are gaining competitive advantage by generating value out of waste through effective flow of materials from point of consumption to point of origin. This entire mechanism of generating value out of waste using eco-friendly practices is widely known as Green Reverse Logistics.

Best Practices in Green Reverse Logistics:

  • Knowledge of environmental impact of the product
  • Advanced & well equipped Information Technology system
  • Effective transportation management
  • Efficient management of returns

Knowledge of environmental impact of the product

Understanding what impact a product has on environment enables companies to identify and calculate their carbon emission count and allows them to take measurable steps to reduce their carbon footprint.

Advanced & well equipped Information Technology System

IT enabled reverse logistics operations can effectively help reduce carbon emission in following ways:

  • Integrating business process with an effective warehouse management system.
  • Automate the documentation process so as to minimize the usage of paper.
  • Create a centralized database to store all the necessary information related to employees, business process, client and sales.
  • Exchange business oriented information through implementing Electronic data interchange (EDI).

Effective Transportation Management

Transportation accounts for a large amount of carbon emission. The emphasis must be on how to manage transportation activities effectively to provide optimal solution to strengthen supply chain and ensure minimum emission of carbon at the same time. Implementation of a well designed transport management should aim to achieve:

  • Route and vehicle optimization
  • Shipment consolidation
  • Driver training
  • Efficient utilization of trucks and trails to avoiding empty running
  • Usage of alternative modes of transport

Efficient management of returns

Companies can substantially reduce carbon impact by competently managing returns. Following are some activities that can help build an environmental friendly supply chain:

  • Reuse/Refurbish the so called ‘waste’
  • Reclaim
  • Reconditioning
  • Resell
  • Using recyclable packaging material

IT solutions have immensely helped the transport industry to optimize their processes and improve their performance. Today transport industry is growing leaps and bounds by increasingly implementing advanced technology enabled transportation solutions. From route optimization to capacity planning, and haulage to warehouse management, IT ensures streamlining the entire business with a focused approach towards reduction of carbon footprint.

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