Study on Reverse Logistics System in E-commerce

Transcription

1 Study on Reverse Logistics System in E-commerce LI Hui-yan 1,2, WANG Shu-en 2 1 School of Management,Shenyang University of Technology, P.R.China, School of Management, Tianjin University, P.R.China, Abstract E-commerce and reverse logistics gradually are attached greater importance by enterprise, the correct reverse logistics can decrease the cost and increase the income. In this article, we started with the characteristic of reverse logistics in E-commerce Environment and explained the flow of it, then mainly analyzed the mode to establish the effective reverse logistics system in E-environment, discussed the relative strategies of the system establishment. Key words Reverse logistics, E-commerce, Flow, Design, Strategy 1 Introduction In recent years, along with the improvement of the logistics environment and the finance environment, the huge advantage of E-commerce is gradually convex to appear, and developing by astonishing speed in several years. However, in the back of fast development, many problems of the reverse logistics in E-commerce bring anxiety. At present, the emphases of E-commerce operation in many enterprises is mostly before sale, considering how to make the merchandise flow to consumer from E-commerce enterprise with much lower price, faster speed and higher efficiency, but the return and callback of goods after sell do not cause their enough attention. But many well-known enterprises abroad have already regarded reserve logistics strategy as an important means to decrease cost, increase customer satisfaction and enhance competitive advantage. As the relational data show, the goods returned rate of general dealer is 5% ~10%, but the rate then be up to 35% if the goods is selled by product catalogue and internet. This phenomenon makes the economic value of reverse logistics in E-commerce environment visualize gradually. So, the problem of how to realize reverse logistics in E-commerce environment has become the pivot and hotspot of investigation. 2 The characteristic and flow of reverse logistics in E-commerce Reverse logistics is the circumfulence and disposal process of the material entity from the destination, it includes the basic functions such as transportation, storage, load and unload, portage, packaging, circulate to process, distribution information treating. According to jumping-off point dissimilarity of reverse logistics dissimilarity, it includes returned reverse logistics and callback reverse logistics. The returned reverse logistics is a merchandise entity transfer process that the downstream customers send back the goods that has a certain faults or quality problem to the upstream suppliers. But the callback reverse logistics is a process that upstream suppliers take back the goods that need to be reform or is excessive stock and out of season from downstream customers and distribution departments. The reverse logistics in E-commerce environment means the reverse logistics of the enterprise that make use of the network to provide the product service. The mainly characteristics of it are shown in the following: 2.1 Indetermination The species, quantity, time and distribution of the reverse logistics have a kind of indetermination, can hardly be forecasted and calculated regularly. The computer information system and network provide an effective flat roof for collection, delivery, analysis and feedback of the related information. 2.2 Immediacy Because the online customers can face or dealer directly and acquire individual customization service, the traditional logistics function can be customized to complete reverse logistics task, but the cost of it will be restricted directly with enterprise logistics functions and reverse flux. 2.3 Convenience 1117

2 The customer s psychological anticipation of product logistics service acquirability will be much sensible due to the network trait of spatio-temporal zero-distance and the augmentation of info communication convenience, dying down the pressure of the enterprise reverse logistics speed demand. Therefore, the layout, structure and mission of the establishment in enterprise logistics system such as warehouse, distribution center, transit etc. can realize the connection with reverse logistics through adjustment partly. And along with the gradual development of enterprise reverse logistics system, the service radius is also enlargement. 2.4 Instant The instant of information shared make it possible that the and dealer collocated resources in the bigger scope, more callback centers and reverse logistics terminal can be established separately everywhere, so the organization structure tends to be dispersive and virtual gradually, and the distance between enterprises and customers weakens. Certainly, this mainly means those enterprises which products have already technically achieved function modularization and quality standardization. The flow of the reverse logistics in E-commerce is: the customers put forward their request for return or maintain goods to dealer or the third-part logistics, then the dealer or the third-part logistics estimated this request, if it is up to the mustard, they will deliver the goods to the upstream enterprise in the supply chain the manufactures, the manufactures examine and classify the goods, then decide to discard, maintain or process again. The flow is shown as figure 1. dealer third-part logistics terminal customers Internet reverse logistics examination and classification maintenance and process again discard or callback Figure 1 Flow of reverse logistics 3 The design of the enterprise reverse logistics system in E-commerce 3.1 Based on information network The enterprises that possess of strong information processing ability but relative weak reverse logistics functions can establish a reverse logistics system based on the information network. In this system, the customers send out their reverse logistics request in virtue of information network, and then the enterprise can inform the logistics center to reasonably arrange reverse logistics according to the customer request. So, through this information communication, the enterprise can control the quantity of reverse logistics jumping-off point and its geographical distribution, eliminating predictable difference. And through the integration of logistics business further, providing foundation for removing delivery speed difference and decreasing cost. In this mode, the enterprise can extend reverse logistics function through information network. This kind of system is shown in figure Based on organization network The enterprises that possess strong logistics functions but relative weak ability of information processing should stretch out their antenna for information collection, exploring the reverse logistics jumping-off point information. Once acquire this, the enterprise then can make use of its strong logistics 1118

3 function to solve the operational problems of reverse logistics. Therefore, in this kind of mode, the enterprise must focus on the information of quantity of reverse logistics jumping-off point and its geographical distribution, ect. But in circumstance that the enterprise information handle ability is restricted, the reasonable way is to collect information by the organization network, and then implementing reverse logistics business using the original logistics facilities. This mode is shown in figure 3. recycle programming terminal disposal area returned goods returned balance callback/exchange dictate callback message online enterprises returned message logistics center returned request affirm/reject request refundment message callback/exchange customers Figure 2 Reverse logistics system based on information network recycle programming returned goods logistics center transport distribution center returned request affirm/reject request refundment message customers terminal disposal area returned balance returned message online enterprises callback balance/returned message Figure 3 Reverse logistics system based on organization network 4 The strategies of reverse logistics in E-commerce 1119

4 The effective operation of reverse logistics in E-commerce need cooperate with relative implementary strategies and guarantee measures. This is the foundation for reverse logistics in E-commerce to achieve and operate normally. The establishment of the reverse logistics system in E-commerce is to solve the efficiency problem, but the relative strategies discuss the implementary problem of it. 4.1 Cooperate with the third-part logistics sufficiently As one of the most important modes of the modern logistics, the third-part logistics should act more effective in the reverse logistics, serving the enterprises and customers by its professional advantage. The basic workflow of the third-part logistics is: When the customers need to return or exchange goods, they connect with the third-part logistics company directly, and the third-part logistics estimate to decide whether return/exchange or not based on the goods return/exchange standards. For those goods that can be returned or exchanged, they continue the next step in the reverse logistics connecting with the or dealer. To the common enterprise, the third-part logistics involved in the goods returned or exchange process in larger extent can save the information cost. For example, in general, the customers connect with the or dealer directly, and then the or dealer connects with the third-part logistics to deliver goods. In this process, the third-part logistics only take on the conveyance task, wasting its resources actually. Because as professional logistics company, the third-part logistics have much more wide network distribution than the s and dealers. To the E-commerce enterprise, this is more obvious. The E-commerce enterprises sell goods through Internet and have extensive scope, but their service network is usually limited, they can set up the reverse logistics system through the third-part logistics to save cost and increase efficiency. 4.2 Zero-returned strategy So-called zero-returned strategy actually means the s come to an agreement with the downstream dealers or the terminal customers. This agreement usually avoids the occurrence of the reverse logistics through giving discount. The advantage of this kind of strategy is obvious, it avoids the storage expense and saves cost for the enterprises. In the meantime, it can commendably control the cost and avoid the indetermination risk on account of the reverse logistics characteristic. However, we must clear that the reverse logistics has not disappear thereout but transfer to the downstream channel probably. Here it needs a reverse logistics disposal center of the third-part, this center is one of the important components of the third-part logistics. Its operation process is: Using the network advantage and based on the request of the dealers which in the agreement, the third-part reverse logistics disposal center reserves the goods which accord with the returned/exchange standards and returns the payment for goods to the terminal customers. According to the agreement, the center will supply service such as storage and classification and carry on a further processing. Thus it can be seen that the enterprises that choose the zero-returned strategy have to pay a certain cost, including the discount giving to the downstream companies and customers and making the agreement with the third-part logistics. If the enterprises want to control the cost efficiently, they must measure and calculate the reverse logistics data strictly to determine the feasibility of this strategy. Therefore, even choosing this strategy, it still need assist of the E-commerce reverse logistics system. 5 Conclusion Though the complexity, scale and cost of the reverse logistics started to change the cognition that the logistics is the third profits source, but in practice, the enterprises can still discover that the correct reverse logistics can decrease the cost and increase the income. In fact, many processes constitute the reverse logistics system in E-commerce environment. The design of these processes can help the enterprises callback goods and resources in the lowest cost, and gaining the maximum income from it. For this, the enterprises must set up suitable management system and choose proper strategies to operate the returned goods. 1120

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