Question

“Product stock-outs” and “product returns” are issues related to reverse logistics. How can more effective and efficient supply chain management impact each of these issues?

Answer 1

Answer: The supply chain management has undergone a tremendous change and the entire focus of modern supply chain management is to create efficient and effective supply chains. The efficient and effective supply chain is said to have a number of positive impacts on different aspect of the business. Product stock outs and product returns are two major reverse logistics issues that are faced by the companies. The effective and efficient supply chain management helps in the situation of product stock out. The efficient supply chain management insures that the products are always available at the distribution point so that the customer can get a right product, at right place and on right time. It is because of the effective and efficient inventory management that the situations of product stock out are avoided. Similarly the product return can also be effectively managed by improving the supply chain management. As when the supply chain operations are better managed then the return of product and its replacement is faster. It is therefore essential for handling both these issues that the supply chain activities like demand management, order fulfillment , returns management are made efficient and effective.