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Essay / The Advantages and Disadvantages of Reverse Logistics - 2420
This chapter further explains reverse and green logistics, and both topics will be discussed, defined and explained in more detail, to help the reader better understand both issues . . Through this theory, Walmart can be analyzed on how both practices impact the business and how each is different. The pros and cons of using these practices will be discussed, as well as how and why Walmart found it necessary to begin applying these practices to its supply chain. Many sources will be examined, analyzed and compared to suggest whether practices are having a more positive than negative impact. The benefits and challenges of adapting a reverse logistics model will be evaluated, as well as the green procurement model used in green logistics and the issues related to it. The differences and similarities will be compared, using different sources and which theory would be best to analyze the business. 3.1 Reverse Logistics Reverse logistics has become a growing concern for many businesses over the past decade. This is the process of moving goods, moving in the opposite direction, for example from the customer to the business. Some important processes involved are physical movement of goods, customer support, warehousing and repair. Reverse logistics effectively solves the problem of resource management. Rogers and Tibben-Lembke (1999) define reverse logistics as “the process of planning, implementing and controlling the efficient and cost-effective flow of raw materials, in-process inventory, finished goods and associated information from the point of consumption up to the point of consumption”. of origin for the purposes of value recovery or appropriate disposal. This definition seems to indicate the similarities and differences between reverse logistics and green logistics and can help an organization or business gain benefits through the use of these practices. The most obvious difference between the two is that reverse logistics aims to save money and reuse materials to reduce operational costs. Green logistics is more about the environment, such as transportation, carbon emissions and recycling. Nylund (2012) suggests that “green logistics involves using material-friendly transportation options and is focused on saving money, but prioritizes company image.” Peterson (2005) believes that recycling, manufacturing and reusable packaging are the point of convergence between reverse logistics and green logistics. Reverse logistics can look at how waste is disposed of, but it also focuses on the cost of landfill space, rather than actual environmental impacts..