Improving the Reverse Material Logistics Operations for Company Y

Abstract

Company Y is constantly building new telecommunication networks while simultaneously dismantling the old technology-based networks. The rapid technological advances cause network products to reach the end of use shortly after few years of usage. However, Company Y is committed to achieve zero waste in its operations by shifting the operations to more circular economy. Thus, selected dismantled network materials are returned to the stock for reuse purposes.

Company Y utilizes reverse logistics to return the dismantled material to the warehouse. This research-based thesis focuses on finding points of development for current dismantled telecommunications material reverse logistics operations at Company Y by analyzing the existing reverse logistics operations and the current dismantled material inventory. By identifying the areas of development in the current operations, this thesis finds recommendations on how to improve the reverse logistics to become lean.

This thesis utilizes mixed methods as research methods. Qualitative research methods includes semi-structured interviews and five months of observation. Twelve interviews were conducted with eight internal stakeholders and four external stakeholders. Quantitative research methods relied on three numerical data reports produced by the author from Company Y’s enterprise resource planning tool. Desktop research was utilized as secondary data. The theoretical framework used published books and peer-reviewed research to gain proper understanding on reverse logistics and value recovery, inventory management for returned goods and finally, improving reverse logistics with lean methods.

The results of analyzing of the current reverse logistics operations delivers a three-phase process overview of how the reverse logistics operations currently operate between stakeholders while also receiving an honest interpretation of the current reverse logistics operations issues.

Twenty-four points of development were found which can significantly improve the current reverse logistics and three points to improve the current inventory. The current dismantled material inventory poses major concerns with the current inventory management for dismantled materials as twenty-four percent of the inventory has not had any material movement for over five years.

The current reverse logistics operations can be significantly improved using lean methods. This thesis recommends a systematic approach of standardizing the reverse logistics process. Additionally, clear guidelines minimize repetitive mistakes and remove uncertainties associated with accountability. Lastly, a proper feedback platform is required to maintain a constant communication between stakeholders to continuously improve the reverse logistics process.