The Role of Supply Chain Management: Reverse Logistics

The Role of Supply Chain Management: Reverse Logistics

Traditional supply chain management was known for business-to-customer transactions without the option of customers' input in the process. However, creating competitive business structures has pushed most businesses to consider reverse logistics in their operations (Ta, Esper, & Hofer, 2015). Walmart is an example of a giant retail firm directly involved in supply chain management. Walmart has adopted reverse logistics in its supply chain management to ensure its customers are also involved in value creation (Franklin, 2021). The retail giant uses reverse logistics to attract and retain most of its customers. Walmart has a wide variety of products that customers utilize across their value chain, such as home appliances, edible foods and beverages, electronic items, and laundry products, among other categories. Generally, reverse logistics helps Walmart develop customer management services, involve customers in value creation, and share product information.

Customer Management Services

Reverse logistics is mainly concerned with the return of goods by customers to the organization when they do not meet their expectations. For example, some customers return goods for refurbishing, repairs, or recycling. Walmart has the responsibility of listening to each customer's needs and finding ways of addressing them. Customers propel the existence of its business (Franklin, 2021). Therefore, customer service is the main priority of Walmart's business. Reverse logistics enable the organization to develop better customer management strategies to ensure that all customers get satisfied with their business. For example, when customers return goods for repairs, Walmart management ensures that the necessary repairs are done on time and the items are returned to customers. In addition, the company maintain a database of all returns and categorize them according to various customers' need (McKee, 2015). Therefore, the continuous use of reverse logistics enables Walmart to establish good customer management services.

Value Creation

Supply chain management in reverse logistics enables companies to develop value addition strategies that make their customers glued to their services. Walmart is among retail organizations that believe in customers' value through value creation strategies. Reverse logistics enable the organization to identify areas of improvement they need to do for their products and services (Franklin, 2021). When customers return goods to any of the Walmart retail stores, they ensure to report any defects and the need to amend the products' quality. Reverse logistics enable customers to work hand in hand with the organization to suggest quality improvements that will create value for the products (Ta et al., 2015). As a result, supply chain management in reverse logistics enables Walmart retail stores to increase the value of their products by involving customers.

Information Sharing

Reverse logistics provide firms with a platform for information sharing between them and their customers. Walmart retail stores have a systematic information-sharing platform that enables the retail giant to collect relevant customer data about specific products (Ta et al., 2015). For example, when customers return products for recycling, they can share some insights on the best use that recycled products can be made with the company. In addition, some customers possess relevant working experience from manufacturing companies which they can share with the company concerning recycling (Franklin, 2021). Reverse logistics enable Walmart to involve its customers in repairs, recycling, and managing rented items for the firm's profitability and value creation for customers (McKee, 2015). Generally, supply chain management plays the role of information utilization to create a better customer experience and provide the company with better product management strategies.

Conclusion

Supply chain management has transformed from traditional systems where goods flowed only from businesses to customers. The introduction of reverse logistics enables customers to play an integral role in determining product quality. Generally, reverse logistics enable Walmart retail stores to develop better customer management services, value creation, and product information sharing. Therefore, organizations dealing with goods and services need to involve their customers in their supply chain management through reverse logistics.