Reverse Logistics is the process to bring back products from consumer or customers to orgin of supplies.
Reverse Logistics is need of certain business and industries where products once sold to customer need to be transport back to orgin or Seller's premises for example Medical Devices, high end electronic devices which need to be transport back to seller's premises if there is any failures, fault or exchange required within warranty period. Now days Reverse Logistics is part of e-Commerce sites like Amazon, Flipkart, Myntra where customers are not sure about the physical product appearance. So Sellers assures return or exchange within certain time.
Just to give example from personal assignment. We were in business of Premium Dental Implants. This brand is Inventor of Osseointegration concept and Pioneer in this segments and offers life time warranty.
Most of Implantologist/ Dentist are train by this company as there is no formal academic course on Dental Implantology in Dental Medical Colleges. This company's Training and Education team conduct courses for Dental Colleges or Professional Dentist who want to upscale their practices from traditional Root canals to Dental Implantology and Prosthetics.
With vary physical condition of patients and Upper Jaw and Lower Jaw structure, multiple times Dentist are not sure about the size of Implants which may be right fit. Hence they always orders implants and related prosthetics in excess of 1:3. As patients surgery can not be postponed due to lack of implants are related material. While placement of Dental Implant they can Check and use the right size and return unused Dental Implants which are very costly to Seller Company to get the credit notes. so 30% of Sold Dental Implants and related restoration material comes back to Seller warehouse/ Origin for exchange or return. In addition there will be failed implants either due to Patients condition like Diabetic, Oral health Hygiene Issues. Company need to analyze these failed implants cases and submit Report to Medical Authority ( FDA) called as Post Market Surveillance.
Here LSS help me in two areas
1. Analysis of Data Points - Failure Analysis and submission of the data to Central Clinical Research team timely. As this process was complicated as Reverse logistics of failed implant from patients mouth can be health hazardous material. so it need to be sterilize and transported back to research center in Europe within 48 hours from reporting of failure. LSS helped to Deploy Control Chart on reporting timelines, packed condition, Patients information .
2. Value Stream Mapping: Since Dental Implant industry in highly un organized indian Market. There were lots of compliance issues while return or exchange or Implants with threat to cancelation of License to operate. So we did through process flow mapping and introduce Reverse Logistic process with help Professional 3rd Party vendor i.e DHL. Process was similar to Car Service where Dentist need to confirm and share the photos or product returned with DHL to get credit note with 72 hours from return.
The above points provide competitive advantage to company as process was simple, transparent, fast and accurate for Dentist and their account receivables were getting reconciled within 72 hours also it provide them facility to get all possible options/ products to complete Patients surgery within time without any hassels.