Reverse Logistics: Effect Analysis And Applied Strategy

Reverse Logistics (RL) is a new logistics concept that has been proposed in recent years. It is the real practice of the sustainable development strategy, as well as enterprises' choice of acting upon environment pressure and control pressure, of reducing the cost and of improving the custom satisfaction. It has become an important complementarity of the current management theory of logistics and supply chain, and has high value in practice.The focal points of this research are the effect analysis to RL and its applied strategy. The purpose is to construct a basic theory framework and offer the theory explaining and strategies for enterprises' RL activities. First, this paper expatiates theconnotation of RL from two aspects-factor theory and system theory, synthesizingthe researching achievement of different scholars, giving the conception of RL, and summarized the main management procedure of RL since the issuing of the White Book of Reverse Logistics in 1993.The original idea of this paper lies in the effect analysis in accordance with RL activity.Based on the different influences that RL activity act on core enterprise, supply chain, consumers and the public, this paper puts forward profit effect, synergetic effect, value effect and environment effect. In analyses of profit effect, it started from the relevant elments of profit effect and combined with production period model, price and output strategies of RL activities. It is found that RL activities can reduce the cost and increase profit for enterprises through the policy controlling and then realized the profit effect. Based on the comprehensive review of the relationship between the manufacture and distribution and the competitive price and profit in different channels, in combination with the practice in IT industry, the analysis of synergetic effect brings forward the integrating model of supply chain members' activity, and then carries out an analysis to all the supply chain members about how to get profits in RL activity. The analysis of value effect is based on the customer satisfaction theory. The effort enterprises make to carry out RL activity is the result of the game between enterprises and consumers is believed. Then, according to the value network theory and the consumer surplus theory,the existence of value effect is described.The analysis of environment effect begins with the rethought of enterprises' cooperating to develop RL activity. The produce process of environment effect in RL with the double layer object decision-making model is analyzed.The promotion tactics of RL consists of two aspects of government and enterprise. To the government, the strategy points are strengthen the flexibility control and introduce the extending principle of producer's responsibility in the legislature, and promote the public participating; In the enterprise aspect, the key points are the ecology design, agency mechanism and systematical support.