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3RD PARTY & REFRIGERATED LOGISTICS Reverse Logistics: Ready for Prime Time More companies are waking up to the financial, environmental and business rewards generated by competent reverse logistics. By LARA L. SOWINSKI F orward and reverse logistics have much in common. However, recalls, returns and the disposition and disposal of expired products demand a unique set of logistics capabilities. Fortunately, a handful of industry sectors and select logistics providers are amassing considerable experience and expertise in reverse logistics. ���The food and beverage sector, actually most categories associated with the grocery and drug channels, are the more mature sectors when it comes to reverse logistics,��� notes Steve Dollase, executive vice president of supply chain for Inmar. ���They were among the earliest adopters of reverse logistics management programs and establishment of policies between trading partners bringing structure to financial reimbursement and disposition management.��� The best-in-class reverse logistics models are designed to maximize revenue, reduce waste and meet changing regulatory requirements, says 34 JANUARY/FEBRUARY 2013 Dollase, which is achieved through extensive collaboration and partnering with third parties. For example, ���Shared information between trading partners offers rich intelligent data that can benefit all stakeholders,��� Dollase says. ���Our consultants leverage our data and benchmarks from across the supply chain to help manufacturers and retailers understand and address the root causes of supply chain defects, which often result in returns. We see companies in other industries accelerating the adoption of reverse logistics best practices, and are supporting many as they do so.��� ��� FOOD LOGISTICS Unsaleable merchandise, including expired food products, cost manufacturers $2.6 billion annually. �� Cynthia Y. McCann Not only are other industries taking a closer look at their reverse logistics capabilities, or lack thereof, but all sizes of companies are getting in on the action. ���We have actually seen a trend of mid-sized and smaller companies following the example set by the early adopters of such programs,��� says Dollase. Raising awareness According to Dollase, ���As reverse logistics management has evolved, it has done so primarily to reduce waste, capture value, and comply with regulatory changes. These practices are in consonance with sustainability and also help reduce risk and improve profit; a motivator for all companies regardless of size.��� Mitigating exposure to risk is also prompting companies to improve their reverse logistics programs, Dollase says. ���Recall planning and execution requires much more focus for manufacturers to minimize their business risk. Recalls have taken on a different scope with globalization, virtual manufacturing and increased supply chain complexity. Risk mitigation in a recall is the primary objective.��� It���s also about protecting a brand name. www.foodlogistics.com