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Addressing Major Financial Impact Issues of Reverse Supply Chain Strategies

This analysis highlights significant concerns regarding the financial implications of reverse supply chain strategies, including product recovery methods such as do-nothing approaches, collaborations with third-party recyclers, and long-term contracts. Key factors influencing these strategies involve industry integration, policy challenges, and the role of government regulation in India, where legislation often remains poorly implemented. Additionally, consumer awareness and behavior impact the effectiveness of reverse logistics practices, emphasizing the need for proactive CSR initiatives and education to improve environmental responsibility.

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Addressing Major Financial Impact Issues of Reverse Supply Chain Strategies

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Presentation Transcript

  1. Major issues not handled so far in the course

  2. Financial Impact of Reverse SC Strategies

  3. Product recovery strategies • Do nothing • Support Third party recycler/remanufacturer • Long term contract with recyclers • Joint venture with recycler • Establish Industry consortium • Vertical integration into product recovery

  4. Factors influencing strategies • Forward and reverse integration • Reuse policy • Sharing of proprietary information • Role of specialized materials • Leveraging competencies

  5. Role of Governments and States • In India, government enacted lot of legislation on product disposal but implementation is in poor state • Companies are not acting as per law • As part of CSR, few companies do some activities related to collection and disposal

  6. Consumer awareness • Our environment awareness is low • Educated customer do more damage than rural uneducated customers • Consumer movement may force companies to practice reverse logistics

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