Advanced Supply Chain Management Report 2022

Running Head: Supply Chain
0
Advance supply chain management
Reverse Logistics in e-commerce
4/8/2020

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Executive Summary
The report has made in regards the Reverse logistics in the supply chain product moves into the
reverse direction from online customers to online business then it becomes quite challenging for
the company. To effectively deal with reverse logistics in e-commerce the companies need to
maintain the relationship between fulfilling the needs and wants of the customers and to
minimize the cost in the company which has stated in this report. Supply chain applications are
highly needed in the Ecommerce business to move shippers into the future of effective
management. The major components for the framework of reverse logistics are the return policy;
return preparation, inspecting and sorting, issue a credit, etc. are stated. The application of the
streamline supply chain has used in this report which uses social media to gain visibility for the
company.

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Contents
Introduction......................................................................................................................................3
Literature Review............................................................................................................................3
E-Commerce Reverse Logistics Framework...................................................................................5
Tools and application to improve the supply chain.........................................................................7
Application of concept to a new context.........................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Reverse logistic is the process in which the product which is sold now it is associated with the
repairs, maintenance, and product return. Ecommerce is the online marketing where marketing of
the products is done based on the customer faced side. Product returns are common in E-
commerce marketing as when the products are sold online then the customers are aware of the
quality, size, satisfaction level, etc. As the market is enhancing, Ecommerce has evolved with the
supply chain and reverse logistics is also considered on retailers or to the consumers (Hsu, et al.,
2016). Reverse logistics in the supply chain is one step back which is related to the reuse of the
products and materials. Reverse logistics creates the value network for any products as it helps in
evaluating that products need improvement. When in online marketing the products get
refurbishment and recycling then it ends the product lifecycle.
When the product moves into the reverse direction from online customers to online business then
it becomes quite challenging for the company. For retaining the customers of the business it is
efficient for providing the eCommerce logistic services so in this report it will be studied. The
customers will offer the services back to back if there is a smooth return process policy in the
company so here, the report will demonstrate the depth meaning of the advance supply chain
management and reverse logistics in e-commerce (Govindan, et al., 2014). Different authors
were reviewed and their opinion will be demonstrated in this report. The conceptual and
theoretical framework of the supply chain will be explained and application to this concept will
also be defined. In this report, the facts and findings related to the E-commerce logistic reverse
will be analyzed and with the help of the framework the operations will be addressed and key
issues will be outlined.
Literature Review
As per the author, today's major marketing is based on the online structure so it has to be
considered by the online business that their product can be reversed in the supply chain due to
the dissatisfaction level of the customers. Product returns in online marketing cannot be
avoidable. It is one of the most challenging parts as per the author in the Ecommerce reverse
logistic (Agrawal, et al., 2016). To keep online customers has become essential in the business so

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that they have to provide effective customer services also. One of the essential components for
the customer's services program is to handles the customer product return.
According to the author (Rozados and Tjahjono, 2014), the profit of the company has a
significant effect when the products return. To effectively deal with reverse logistics in e-
commerce the companies need to maintain the relationship between fulfilling the needs and
wants of the customers and to minimize the cost in the company. They have to address both the
things then only they can attain to the profit in the company.
eCommerce buyer behavior is difficult to evaluate and it is the biggest reason behind reverse
logistics. As per the author, the major attention has to make on building the return policies by the
merchants which are customers friendly (Pan, et al., 2015). The quality of the customer’s
services is essential in E-commerce business to retain the customers and for winning the loyalty
of the customers. Many customers do not do Online shopping due to the not effective return
policy which affects the profitability of the company. so as per the author, the return policies
should be effective so that customers decide to shop with an e-retailer.
According to the author (Tiwari, et al., 2018), the major products which have been returned by
the customers are related to the clothing as people get the issues related to size, color, quality,
etc. so they return the products. It was researched by the author that computer software and
books were also returned majorly by the customers as they do not get satisfied with the product.
It was also evaluated by the author that the return policies have certain attributes which drive
potential customers away (Grabara, et al., 2014). In Ecommerce marketing, many businesses do
not give the option of the credit and debit cards so the inability to receive these services is a
major attribute that affects the logistic market. Certain companies also make the policies that to
return the product have some limited period which also drives potential customers away from the
company.
In the reviews of the author (Tsanos, et al., 2014), in the eCommerce marketing, the buyers
consider certain things important such as there should be the ability to exchange the product with
another item so that customer gets the products which they needed if any default in the product is
there. The customers want their product should be get returned by preferring the mail instead of
going on the stores and return them (Tramarico, et al., 2015). If the retiring policy in the

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company is not made through the mail in the company than potential customers are also driven
away and it affects the company.
E-Commerce Reverse Logistics Framework
There are certain key components which are essential to analyses for evaluating the reverse
logistic in eCommerce. The major components for the framework of reverse logistics are the
return policy, return preparation, inspecting and sorting, issue a credit, Receiving the product and
then asset recovery. There are certain ways through which the asset recovery can be done such as
repackaging, restocking, return to vendor, scarp a disposition. This logistic framework will
satisfy the two groups by the entire process which is customers and the company (Ab Talib and
Hamid, 2014). The customer’s services have to be pit attention to make the customers remain in
the company and corporate needs have to be fulfilled so that profitability in the company can be
improved.
Return policy
The company has to set the return policy in that effective way that it fulfills the needs of the
customers and even does not affect the profitability of the company much (Dissanayake and
Singh, 2008). It is the trade return policy between encouraging the customers to but the products
and the impacts of the return should be reduced. The return policies are set in that manner that
the customers prefer to buy the products through the eCommerce companies. The company sets
fair return policies and majorly they are similar in the competitive market so that the customers
can be encouraged to buy the products (Cucciella, et al., 2012). Certain things are addressed in
the return policies for the customers such as the cost of return goods. If there is any cost that is
applicable in the returning policy then it should be mentioned to the customers in the reverse
logistic framework.
Certain things have to be considered in the eCommerce market that the person should have the
contact number so that they can authorize the product return to the right person. Certain things
are not allowed by the eCommerce companies to return to exchange so this should be addressed
for the customers so it makes clear to them what to buy and what to not. In online marketing, if
there is the replacement of the products and goods and if the company demands any shipping

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charges then it should be evaluated to the customers (Gu and Liu, 2013). If in the returning
policy the shipping charges have to be pay by the customers then it should be mentioned in the
return policy.
The period of returning the goods should also be mentioned in the return policy so that the
customers know about the date of return and should also know when the replacement item or
credit will be received by them (Liu, 2014). The customer should also know the information
regarding what good can be returned to them and through which mode they have to apply for the
return policy.
Free exchanges and easy return
Majorly e-commerce marketing provides the free exchange easy return which helps the customer
in giving the special incentive. The technology has emerged that the customers can use the
framework of reverse logistics through the phones by requesting the exchange. When the goods
are returned the credit is issued which will ship the stock items immediately. There are many
uncertainty and risk in the online marketing so the easy merchandise returns help in removing
the risk to the buyers and if there is anything which does not fit the customers then they can
easily return them (Wang, et al., 2013).
For the free return also certain policies are made in this framework which is related to the return
shipping cost. If the customers have made the pre-paid shipping then the certain cots are reduced
from the shipping process or it is reduced from their refund credit. There is also a policy that the
amount of the product will be returned to the customer after the 10 -14 days when they will
return products are received to the company. For every product, the returning policies vary so
certainly returning policies are framed for the logistic reverse.
Return preparation
After making the returning policy, the good are prepared for the return. For the e-commerce
reverse logistic framework, there is a conflict with the payoff return processing. If the return
policies are free or if the processing for the returning is easy then it has been seen that
eCommerce companies have to suffer a lot as it becomes easier for the customers to return the

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goods so they used to do it more often. The return volume gets increased when the return policy
is simple and if the return policy makes poor then it scars the buyers (Badenhorst, 2016).
The company has made the return authorization in which the customers obtain the approval from
the company so that they can review to ensure that to whom and on which date the delivery has
to be made. The customers return the items without any reason so in that return authorization
framework the companies have returned the requirements for the customers (Jayaraman and Luo,
2007).
Shipped packages
Return forum: The return products are handled by the Return Forum in which the customers
have to state the reasons behind the returning product and have to give the comments behind the
return. The option is to given the customers whether they want to make the exchange or has to
seek the credit (Addo-Tenkorang and Helo, 2016). The reasons for the return help the
eCommerce companies to evaluate DOA through which they can do the stocking and testing of
the product.
Return labels: It is the important reverse logistic tactic where the bar code is there to identify
the receiver team and the shipping address is also included so that return of the product can be
made easy. The credit to the customer's issues when the returned item match with the bar code
and it is returned with the original purchase (Brito and Dekker, 2012).
Shipping label identifier: After matching the bar code the company returns the shipping
charges from the customers and if the return policy does not qualify then pre-paid shipping will
be deducted from the customer credit (Wang, et al., 2013). The company also offers the shipping
volume discounts to retain the customers and the customers get the advantage as they don’t have
to ship the package to the post line, they can easily do in this framework.
Tools and application to improve the supply chain
Integration is an effective tool for supply chain management which helps in improving the
upstream, downstream and other logistic operations. Integration is the enterprise resource
planning approach in the supply chain management which facilitates through the centralized
system and manages its distributors, suppliers and other logistic activities. It is a tool of the

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management and techniques which works together with the customers and suppliers and
optimizes the collective performance in the distribution, creation and the support of the end
products (Guo, et al., 2017). The upstream, downstream and the other supply chain operations
can be easily achieved with the help of the supply chain integration as it selects specific vendors
fir the specific inputs. Supply chain integration set an agreement for the vendors and also set the
cost for the set amount of inputs.
Integration is the strategic tool in supply chain management which helps the companies to
improve their competencies by integrating with the customers through the communication
technologies and the information system. There are several benefits of using the supply chain
integration such as it added flexibility at the working place, reduced waste, improves the margins
of the company and also increases the connectivity with the help of the entire value chain (Patil
and Divekar, 2014). It is the process which creates the cohesion from procurement to production
planning to logistic which helps in adjusting the request of the client and the actions of the
competitors.
Application of concept to a new context
Supply chain applications are highly needed in the Ecommerce business to move shippers into
the future of effective management. The effective applications of the supply chain needed by the
companies in the competitive marketplace so that companies can do the innovation of the
business and optimize productivity (Deshpande, 2012). Better visibility in the supply chain is
created with the help of supply chain technology applications. The supply chain technology
application should be integrated with the eCommerce business and model so the supply chain
management in the company can be improved.
Computerized shipping and tracking the data is the major application used in the supply chain.
This application is essential for the business to evaluate the details regarding the transportation
management system by using systems like ERP, CRM, and TMS. By using the chain
management technology application the company can save money and time and also reduce the
time spent in the shipping, tracking, receiving and complaining of the order data
(Mathiyazhagan, et al., 2015). The supply chain application of technology helps organizations to
improve the operational efficiency of the supply chain. The company can easily track the status

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of their order through this application and helps in thriving the business more consumers
friendly.
The application of the streamline supply chain can also be used which uses social media to gain
visibility for their company. The important marketing strategy to attract the customers is social
media so this application is effective in interacting with the customers, creating updates of the
inventory of the company and also responds to the questions of the customers. With the help of
this streamline application, the organization helps in improving the demands of its products,
lowers the operational cost, creates open communication with the customers and enhances the
overall productivity of the company (Dubey, et al., 2017). Supply chain collaboration is effective
in this application as it is the new model used by many companies as it creates good relationship
management. The future customers’ needs are taken care of the streamline supply chain
application so with the help of social media, the companies can improve their customer’s
services in the future.
Example
Amazon is the e-commerce company which delivers the products to the customers online and
they also many issues related to reverse logistic. The company has different reverse logistic
policies depending upon the products (Farahani, et al., 2014). The major trend in supply chain
management is related to increasing competition and pricing pressure. There are many
competitor companies of Amazon which are offering products online at lower prices and with
better supply chain services so it becomes quite challenging for the company.
The company Amazon has improved its supply chain performance by using the application of the
streamline supply chain application. In this application, the company Amazon uses social media
sites such as Facebook, Twitter, Instagram, etc. to gain visibility for its customers. The company
has a good reputation in the market but as the marketing strategy, they used social media so that
they can create the open communication with the customers (Balfaqih, et al., 2016). The
company has gained the quick business results by using this application and has maintained a
good relationship with the customers and also collaborated their supply chain with the integrated
supply chain tool to make better functioning among the suppliers.

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Conclusion
From the above report, it is concluded that supply chain management is essential for an
organization as it helps in raising the profit level of the companies by enhancing the supply chain
network. It helps in building a good relationship between the vendors and the customers and
helps in boosting the cooperation. The report has majorly focused on reverse logistics in e-
commerce which is essential to retain the customers in the companies. In this report, the
theoretical framework of the supply chain has explained which helps in achieving sustainable
competitive advantage. The application and models of the supply chain have also explained
which helps in communication with the vendors and customers effectively.
Product returns in online marketing cannot be avoidable as it is one of the most challenging
parts. The technology has emerged that the customers can use the framework of reverse logistics
through the phones by requesting the exchange. Computerized shipping and tracking the data is
the major application used in the supply chain and the streamline supply chain application has
also explained above. Integration is the strategic tool in supply chain management which helps
the companies to improve their competencies by integrating with the customers through the
communication technologies and the information system. There are certain ways through which
the asset recovery can be done such as repackaging, restocking, return to vendor, scarp a
disposition. Reverse logistics in the supply chain is one step back which has clearly stated in this
report.

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