APPLICATION OF REVERSE LOGISTICS TO FAILURE ANALYSIS OF ELECTRONIC PRODUCTSAuthors: A. Gandelli and A. Caliri
Company: Politecnico di Milano, Dipartimento di Energia
Date Published: 2/12/2009 Conference: Pan Pacific Symposium
Once an electronic failure product reaches the final market it is important to isolate this event and manage a plan to recall products (mode/time/information to commercial partners/number of goods), considering the opportunity to use specific insurance against these failures. In all of these events, that today are very common, company suffers high costs for the logistics activities to retire the goods and for the testing control to detect and correct the failure. We have also to consider the re-work costs and the impacts on the business (brand) that are more difficult to quantify. In order to reduce the economic impact, company are focusing on the Reverse Logistics issue that interest all the actions to minimize cost-time of recall. We refer to Reverse Logistics as the process that start from the final market and cross the entire supply-chain in the opposite way, direct to the input-point supply. In this paper we discuss about the concept and dynamics of the Reverse Logistics process, analyzing meaning, cost, and method. We will focus on the inefficiencies that characterize today Reverse Logistics processes and starting from this point we will investigate the main causes proposing five different best practices. Their use can provide a total cost reduction estimated in about 25%
Key words: Reverse Logistics, Failure Analysis, Consumer Electronics, European market
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