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Everse Ogistics in Griculture: I B & A L

This document discusses reverse logistics in agriculture. Reverse logistics deals with waste management and recycling of goods after consumer use. In agriculture, it can help reduce food waste and ensure safe, quality food. However, reverse logistics in agriculture faces challenges due to the perishable nature of foods and lack of dedicated reverse supply chain networks and infrastructure. Key aspects that need improvement include transportation management, warehouse organization, and information systems to better track product returns. Automation, efficient warehouse planning, and optimized in-house operations can help strengthen reverse logistics in the agriculture industry.

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Shivam Jhade
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27 views6 pages

Everse Ogistics in Griculture: I B & A L

This document discusses reverse logistics in agriculture. Reverse logistics deals with waste management and recycling of goods after consumer use. In agriculture, it can help reduce food waste and ensure safe, quality food. However, reverse logistics in agriculture faces challenges due to the perishable nature of foods and lack of dedicated reverse supply chain networks and infrastructure. Key aspects that need improvement include transportation management, warehouse organization, and information systems to better track product returns. Automation, efficient warehouse planning, and optimized in-house operations can help strengthen reverse logistics in the agriculture industry.

Uploaded by

Shivam Jhade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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REVERSE LOGISTICS IN AGRICULTURE

IHAR BARANAU1 & ANDREJ LISEC2


1 Warsaw University of Life Sciences, Faculty of Economics, Warsaw, Poland.
E-mail: [email protected]
2 University of Maribor, Faculty of Logistics, Celje, Slovenia.

E-mail: [email protected]

Abstract Reverse logistics is a relatively new research area, both


in theoretical and empirical terms. Due to the requirements of
modern civilization, the present society produces more and more Keywords:
material goods that satisfy it different needs. The consequences logistics,
agriculture,
of these actions include a huge amount of waste both during
reverse
production of these goods as well as after their use. The article logistics
defines the concept of reverse logistics. Consider problems in costumer,
food,
reverse logistics in agriculture, organization of reverse logistics logistics
operations and ways to improve reverse logistics operations. organization.

DOI https://doi.org/10.18690/978-961-286-406-4.5
ISBN 978-961-286-406-4
XIV. INTERNATIONAL CONFERENCE ON LOGISTICS IN AGRICULTURE 2020
52
CONFERENCE PROCEEDINGS.

1 Introduction

Due to the requirements of modern civilization, today's society produces more and
more material goods that meet various requirements. The consequence of these
activities is a huge amount of waste generated both during the production of these
goods and after their use. These wastes have become an inseparable factor of human
living and economic activity. Technologies of production are changing and the
variety of waste is changing[1].

The object of interest of modern logistics is increasingly solving problems and


looking for new paths related to waste management.

Because of this reverse logistics developed. It covers all processes related to waste
and information flows from places where they arise to their final destination[2].

2 Reverse logistics

Reverse logistics is a field of logistics dealing with the examination of the patterns
associated with the flows of products whose life cycle has ended. Waste management
can be significantly supported through logistic activities- hence the concept of
reverse logistics[3]. Reverse logistics is a quite young term in the literature, and
perhaps that is why there is no final clear definition. Reverse logistics is also known
by the concepts waste logistics, disposal logistics, recycle logistics. The concept of
reverse logistics appeared already in the 1980s. Lambert and Stock (1981) defined
reverse logistics as the flow direction is opposite to the traditional flow materials in
the logistics chain. In the 1980s, Murphy and Poist (1989), inspired by the reverse
direction of product flows, defined reverse logistics as the products flow in the
supply chain from consumers to producers. Polen and Farris agreed with this
definition (1992), they defined the final consumer and emphasized the reverse nature
of the product flow in the supply chain, but did not define the main activities of
reverse logistics. The concept of reverse logistics continued to evolve in the 1990s.
Stock (1992) formulated a definition that emphasized the role of recycling in the
logistics of waste disposal and reuse. This definition was summarized by Kopicki
(1993): ‘adding information flow to the reverse supply chain keeps it functioning’.
In the late nineties, Rogers and Tibben-Lembke defined goals and logistics
processes, defining reverse logistics as a planning process, design, implement and
I. Baranau & A. Lisec:
53
Reverse Logistics in Agriculture

control, cost effective flows of raw materials, production inventories, finished


products and related information from destination to origin for restoration or total
disposal. Reverse logistics applies to flows where there is the possibility of
reimbursing the cost of used products and where the release of these products
creates a new supply chain. The full definition of reverse logistics, as according to
The Council of Logistics Management, is the process of implementing, controlling,
and planning the cost-effective flow of finished goods, raw materials, and in-process
inventory. The flow is from the point of consumption (i.e. the customer) to the point
of origin (i.e. the manufacturer), to properly dispose of these or to recapture value.
Included in this definition is any re-manufacturing or refurbishment of goods.[4]

Figure 1: Reverse logistics scheme

Some reverse logistics examples are: Return of goods by customers, Return of


unsold goods by distribution partners due to contract terms, Re-use of packaging,
Refurbishment of goods, Repairs and maintenance as per guarantee agreements, Re-
manufacturing of goods from returned or defective items, Selling of goods to a
secondary market in response to returns or overstocking and Recycling and disposal
of end-of-life goods.[5]

3 Reverse logistics in agriculture

Reverse logistics can be used in agribusiness to reduce food waste and provide
consumers with quality and safe food without posing a serious threat to human
health, well-being and the environment. A chain of over-purchasing, premature
harvesting, inappropriate labelling and storage instructions, poor storage and
XIV. INTERNATIONAL CONFERENCE ON LOGISTICS IN AGRICULTURE 2020
54
CONFERENCE PROCEEDINGS.

transportation, manufacturing errors, trial runs, packaging defects and incorrect


weight and size which directly affect stock forecasting, continuous food supply,
quality management, return and waste management.

3.1 Reverse logistics problems in agriculture

The biggest problem with reverse logistics processes for agro-food products is their
perishable nature, which can become unsafe even due to small failures in process
control, which creates a food safety incident and can subsequently pose a possible
threat to the health of consumers.

Agribusiness companies try to avoid returns and rejects whenever possible. If a


return does occur, the process usually consists of checking the batch number, writing
off the shipment, and making a trip to the nearest food dump. Which is the second
problem of reverse logistics in the agriculture industry: lack of experience, networks
and manpower to safely return products.

Each return that occurs in the food supply chain is treated as a unique, separate
transaction, and therefore, these returns tend to involve higher downtime and costs.
They can also disrupt the existing supply chain since they may repurpose buildings
and personnel to handle a transaction they do not usually do.

In the food industry, it is very important to monitor the supply chain and disruptions
due to food spoilage. Reverse logistics in the food industry demands carefully
developed practices tailored to a reverse supply chain as well as transportation assets
and facilities.

Some of the key factors in setting up the Reverse Logistics operations are:

− Segregation and sorting: this process needs to be optimized in order to


avoid excessive spending on transportation. Also, large volume of similar
type of products are likely to be handled more efficient than a group of
products with divergent characteristics.
− Transportation management: reverse supply chain has its own practices
and needs, hence using transportation and facilities that serve existing
forward supply chain can cause disruptions and interfere in getting sellable
I. Baranau & A. Lisec:
55
Reverse Logistics in Agriculture

products to the market. However, this can be avoided by simplifying the


operation i.e. by allowing each store to return material only when they are
the last in the supply route since for retailers with multiple supply stores it
is most efficient to collect the returned material to the Distribution Centres
with the same truck that delivers the products.
− Warehouse management: warehouse design for placement and handling
of returns, storage, waste management and integration of sale or
reprocessing. All returned products that are nearing the end of their lifecycle
may not always be sold at their original price, but can be put back in stock
to be shipped to another market.
− Information Management: effective information systems are needed to
individually track and track product returns. Uses barcodes, computerized
return tracking, electronic document interchange to improve their reverse
logistics operations and tracking. Complexity in the agricultural industry,
producers must protect and control not only batches, but also the shelf life
of products[6].

Ways to improve reverse logistics operations:

− Automation: automating return processing for similar items or items


packed in the same container can simplify operations.
− Efficient warehouse planning: for efficient cargo handling, it is necessary
to take into account return handling (destination and future storage
locations) when designing a warehouse, and not just a direct flow.
− Better In-house Operations: food retailers and processors can speed up
the process and reduce waste through better screening, segregation,
centralized return.

4 Conclusion

Landfill disposal might be a simplest option, but it should be a last resort for both
financial and environmental reasons. Ideally, recalled food product should be
composted and any packaging recycled. Organic waste should be converted to
renewable energy and polymeric materials should be recycled and reused. Reverse
XIV. INTERNATIONAL CONFERENCE ON LOGISTICS IN AGRICULTURE 2020
56
CONFERENCE PROCEEDINGS.

logistics in the agriculture demands carefully developed practices tailored to a reverse


supply chain as well as transportation assets and warehousing.

References

Budzik-Nowodzińska I., Logistyka zwrotna w gospodarce odpadami, „Logistyka” 2013, number 6, p.


553-555.
Fajczak-Kowalska A., Wybrane aspekty logistyki zwrotnej, „Logistyka” 2014, nr 6, p. 3498-3505.
Food and Agriculture Organization of the United Nations. (2011). “Global Food Losses and Food
Waste”. http://www.fao.org/save-food/resources/publications/en
New and Emerging Technologies for the Food Supply Chain <URL: https://sipmm.edu.sg/new-
emerging-technologies-food-supply-chain/> [Accessed 9 November 2020].
Szołtysek J., Logistyka zwrotna, ILiM, Poznań 2009.
Sadowski A., Zarys rozwoju logistyki zwrotnej, „Logistyka” 2009, nr 5, s. 12-15
What is reverse logistics? <URL: https://www.c3controls.com/white-paper/what-is-reverse-
logistics/> [Accessed 9 November 2020].

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