Academic Journal of Science and Technology

ISSN: 2771-3032 | Vol. 12, No. 1, 2024

Study on Reverse Logistics System Issues

Long Guo *
School of Economics and Management, Southwest Petroleum University, Chengdu 610500, China
* Corresponding author Email: [email protected]

Abstract: In this information age, competition is fierce in all sectors, and the logistics industry is no exception. Numerous
enterprises enjoy the great benefits brought by the advanced logistics system, and at the same time must respond to the call of
the times, the sustainable development strategy and green logistics is imperative. Therefore, the establishment of a reasonable
reverse logistics system is able to reduce the economic development of the ecological environment brought about by pollution,
and effectively solve the rapid economic development and environmental protection issues between the special contradictions,
but also appropriate to reduce the pressure on the supply of resources in the community, while easing the constraints on the
contradiction of resources. The construction of low-cost, high-efficiency reverse logistics network can not only greatly enhance
the efficiency of the logistics chain but also promote the synchronized and coordinated sustainable development of society,
economy and environment.
Keywords: Reverse Logistics; Circular and Efficient; Sustainable Development.

1. Introduction 2. Enterprise Reverse Logistics System

Reverse logistics in China's development there are Structure and its Function
problems such as lack of control, scattered channels and lack
of awareness[1]. With the awareness of environmental 2.1. Reverse Logistics Network Structure
protection, resource recycling and sustainable development Reverse logistics network structure has its own
ideas continue to take root in people's hearts, more and more characteristics, due to the different forms of takeover into
enterprises began to pay attention to the recycling of reuse, remanufacturing, recycling and business return reverse
resources[2]. In this era of increasingly prominent logistics network.
contradictions between limited environmental resources and Basic characteristics of reverse logistics network systems
rapid socio-economic development, people need to pay more (1) Complexity. Complexity resulting from a range of
attention to the benign development of reverse logistics. In uncertainties about the quality, quantity and return date of
the supply chain this big network, if the upstream enterprise products recovered from buyers, with possible influences
adopts the reasonable and effective way of return, it can make from within the system.
the downstream customer business risk reduction, not only (2) Diversity. It is extremely important that environmental
regulates the relationship between supply and demand, but considerations be taken into account in the establishment of
also actively catalyzes the strategic cooperation between the system and that economic costs not be taken into account
enterprises, and can enhance the competitive advantage of the unilaterally.
whole chain, especially in the risk of obsolescence of the (3) Imbalance between supply and demand. This refers to
product is slightly high, the strategy creates a competitive the fact that there is sometimes a mismatch between supply
advantage is more obvious. Material cost, material and demand for recyclables.
consumption and material utilization are all indispensable in (4) From many to few. This refers to the pooling of logistics
the study of enterprise cost management, and at the same time from a small number of locations in multiple directions.
as a number of important means to increase efficiency and
enhance the potential value for the enterprise. In the 2.2. Reverse Logistics System Functions
traditional management mode, because not too much attention Not all logistics systems cover the same processes, and
to the effective use of external materials and waste products, their functions are roughly as follows:
so many recyclable resources are wasted, which seriously (1) Collection: Through acquisition and storage, the
exposes the limitations of material management on the scattered products to be recycled are brought together and
internal operation of the enterprise materials. Therefore, transported to the operation processing place, and care is
through reasonable analysis, the buyback of these low-priced taken to minimize the cost consumption caused by non-
and widely sourced waste products can, to a certain extent, essential transportation in the process.
realize a significant reduction in the cost of enterprise (2) Classification and testing: first test the recyclables to be
materials. Reverse logistics system and forward logistics classified in accordance with scientifically feasible methods,
system is very different, the former is more uncertain, in order the process also covers dismantling and warehousing and
to speed up the recycling of materials and waste products other steps.
remanufacturing, enterprises need a good reverse logistics (3) Reprocessing: The dismantling of parts of the recovered
system, the process of reducing the use of resources, improve material or the handling of the entire product operation in
the efficiency of forward and reverse logistics, to realize and order to extract secondary value. Reprocessing also includes
improve the green logistics has a positive significance. reuse, remanufacturing, recycling and commercial returns
(for details, see the reverse logistics network structure in

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chapter II, Overview of reverse logistics systems). new value.
(4) Disposal: Due to various factors, it is difficult to reuse (5) End-of-life treatment, for certain wastes and parts that
the product parts or products for destruction. do not pose a high risk of environmental damage, etc., with
(5) Redistribution: The finished product after operational the help of unconventional means in order to implement end-
processing is sent to the relevant place for sale through of-life destruction treatment.
transportation storage and other steps.
4.2. Costs and Benefits of Remediation
3. Problems with Reverse Logistics The operation and utilization of waste or recyclable
Systems materials generated during production, packaging and
transportation has a certain probability of remaining storage
A complete logistics system consists of forward and costs or costs incurred in the recycling process, which are the
reverse logistics systems[3]. Because of China's reverse costs of reverse logistics. Many of the EU member states pay
logistics system research has not yet matured, the enterprise's great attention to the recycling of materials, and the increasing
resource reuse system can not be established, reusable importance of recycling and the increased attention paid to it
materials did not embark on its due green recycling pathway, have made the cost of reverse logistics an indispensable part
reverse logistics system center is also difficult to arrange, so of research. Enterprises can expand their existing supply
that the social economy suffers a small loss. chain by establishing an effective recycling system,
If the forward logistics system and the reverse logistics combining the forward distribution of products with reverse
system collide, due to the insufficient recognition of the recycling, and improving the resource utilization and
importance and value of the latter by the enterprise simply operational efficiency of the logistics system while obtaining
feel that the implementation of the process is more costly, the recycling value of products[5].
usually the reverse logistics will not be selected by the Effective programs to reduce reverse logistics costs are
management because of its own uncertainty and other listed below:
characteristics. Fully reusable materials as an effective basic 1. Construction of reverse Logistics Information System
resource has been seriously wasted, the production process is
First of all, the enterprise itself needs to strengthen the
blocked, the reverse logistics process is also stagnant, a series
understanding of the reverse logistics system, integrate the
of problems reduce the efficiency of logistics and more
modern logistics information technology and take the
directly increase the costs. The lack of social enterprise's
complete management information system as the foundation
cognition of the reverse logistics system and the lack of
of the huge reverse logistics information system. In the
attention have become a huge barrier to the development of
process of operation, the potential resources are constantly
reverse logistics, and at the same time, it also hinders the
explored to strengthen the adaptability so that when the
construction of the reverse logistics system.
unexpected situation occurs, it can be dealt with calmly and
efficiently. Collecting and categorizing the retrospective
4. Countermeasures to Improve the information is the core element of the construction system,
Problems of Reverse Logistics and should also develop a unified return standard in the return
System process can be better tracking and positioning, speed up the
response rate while optimizing the process cost. Increase the
4.1. Recycling Reverse Logistics Systems training and selection of logistics personnel to establish an
Accompanied by the rapid development of social mass effective reverse logistics information system and improve
production, all the time enterprises are in their production and the overall satisfaction of the user at the same time to increase
consumption areas to produce a huge amount of waste profits.
materials, so how to better recycling is the study of recycling 2. Strengthen management to limit returns
reverse logistics is an important prerequisite for the economic Before and during the transportation of products as far as
development of enterprises has a pivotal role. Perfect reverse possible without error, planning and reverse logistics network
logistics services can improve the consumer's purchasing is closely related to the forward logistics network; enterprise
experience, and guide consumers to repeat shopping, the departments to cooperate, and strive to improve the
maintenance of customer relations has a positive significance coordination of various network nodes to promote the
[4]. communication of members and managers; return checking
The components or processes of a recycling reverse process strict control and repair and simplification, in the
logistics system are as follows: policy of reasonable adjustments in order to avoid the
(1) Recycling, product goods from the logistics terminal existence of the seven days no reason for the malicious return
may be returned to the starting point in the form of a certain behavior.
substitute, and the starting point is not a fixed node is the 3. Recycling
existence of any one of the links in the process. If there is little or no impact on the normal use of the
(2) Inspection is a prerequisite for choosing the post- product, it can be assessed how much it is needed, and if there
processing method of the goods, the initial basis for re- is a regular demand for this type of product, a corresponding
operation and utilization after dismantling, and detailed market is created, so that the returned product gains some of
analysis and testing of the recycled material parts and its value, and can be re-sold with a new package; the
products. centralized recycling of products with minor defects can be
(3) Splitting, based on the characteristics of the goods re-sold directly if they do not need to be repaired or treated,
themselves disassembled and re-divided. and only a supply route needs to be found in order to make
(4) Reprocessing, as the name implies, is the use of back the product available to the customers who need it. If a
goods and dismantled parts and materials, such as damaged product or a product with similar problems can be
reprocessing and remanufacturing to give it a new life and repaired by low-cost means after considering the cost, it will

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be transported to a centralized processing center for repair; if recycling centers, so that a small amount of scattered low-cost
it is difficult to be repaired or if it cannot be maintained by materials to integrate a certain scale to improve the efficiency
low-cost technology, it should be immediately recycled and of the reverse logistics system. The local government will
discarded, and then classified through the prerequisite steps give economic support to the construction of the reverse
of testing, so that materials that can be disassembled and logistics network within a reasonable range, and build a
completed can be put into a new cycle and used, thus reducing specialized market to promote the rapid circulation of many
the loss. elements in the process.
4. Processes and configurations dedicated to local recycling
Optimize route design, build a more complete and efficient 6. Conclusion
reverse logistics network, make innovations in the supply Although the development of China's reverse logistics
chain, and control a different proportion of back goods or system is still in the early stage, but through the understanding
materials to each node to improve efficiency. Integration as of domestic and foreign related research found that there are
the basic premise, so that the upstream and downstream work problems, the study of recycling reverse logistics system to
closely together to deal with the operation of recycling calculate the cost of transportation and repair and processing
operations separately to improve efficiency and reduce the revenue value of the problem of reverse logistics to help. In
cost of the process. A series of operations such as inspection, the future, reverse logistics is not only the support of the
checking and categorization require companies to configure circular economy, but also the necessary means and important
special sites to build warehouses to deal with, so that the guarantee for the realization of the circular economy, the
traceability efficiency is greatly improved, this program can development of reverse logistics network construction is an
also be given to the third party to implement. important way to comprehensively satisfy the people's ever-
increasing material and cultural life, and a perfect reverse
5. Increase in the Number of logistics system must be the absolute condition for the
Supportive Economic Policies survival of the enterprise, but also the bridge between the
national green logistics economic development and the
Maintaining the development of enterprise reverse logistics
sustainable development strategy.
system, the establishment of regional reverse logistics system
needs very targeted government policies, through a variety of
relevant policies to support different business to stabilize the
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