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How can Johnson Automotive improve and optimize their return parts channel? This will be the objective of Strategic Procurements objective. Johnson Automotive should understand reverse logistics and its process. If Johnson Automotive does not understand the hidden value of the reverse logistics, then it can never capitalize on this important facet of its business. Application of a supply chain is important, but just as important is the identification of any issues that would arise from the reverse logistics of electronics, batteries, and paint products. Also, this business is similar and different than other industries and the identification of these similarities and differences will help Johnson Automotive in their quest to operate their reverse supply chain more efficiently. Finally, is there an opportunity for a competitive advantage for Johnson Automotive? These are the questions that will be discussed.
What is reverse logistics? "Reverse logistics is the process of moving products from their typical final destination to another point, in an attempt to recapture some of the value of the product through resale, reverse auction, or for the purpose of disposal of the item if not resalable or reusable." (Reverse Logistics: Important or Irritant?) Some companies feel that returned merchandise is a losing effort for a company. However, with the proliferation of companies taking back returned items for any little reason, companies must view returned items as an opportunity for profits. The liberal return policies have given consumers an upper hand as regards the use and return of products. It is almost as if ...