We return to the hypothetical grocery delivery business described in Case 1. If

Question

We return to the hypothetical grocery delivery business described in Case 1.

If you buy a defective computer, then it’s a given that you’re going to take it back to where you bought it, either to be repaired, replaced, or returned in exchange for a refund. If you buy a net of onions that has some moldy ones in it, then it’s a given that you’ll simply throw them away. Taking them back to the store isn’t worth the trouble.

In the case of MyShoppingCart, the situation is a bit more complex. Your customers are paying a high premium for fast, 24/7 delivery of groceries. If a Silicon Valley matron gets a corked bottle of pinot grigio, or a tin of pate de foie gras with an unwholesome aroma, then she expects your company to come get it, and credit her account.

This is an example of reverse logistics, which your readings describe as “a supply chain opportunity.” But you’re having difficulty finding any opportunities in the smelly bags of spoiled groceries that turn up at your warehouse from time to time. This problem is a lemon. Your challenge – to make lemonade!

Carefully examine the situation, and discern any opportunities to profit from the returns, or at least earn enough money to offset the losses. Here are some clues. You bought the products from somebody, right? Maybe they’re good for it. Also: information about product quality is valuable, at least in principle. How could you monetize that value? Who would be interested in seeing that information, and what could you gain by providing it to them?

Again, be sure to base your discussion on a close reading of the required sources. Be sure to provide citations and references.

Explanation / Answer

Here in these case we are talking about Reverse Logistics. Lets start with reverse logistics, if we merge the meaning of these two words we get what exactly it is. In simpler terms, Logistics refer to as the description and implementation of all those works that are required to ship the items and products from origin to the place here it is going to be used(client or customer). In short the process of selling the products and sending from Shopkeeper to Customer, and the reverse of it i.e from Customer to Shopkeeper is Reverse Logistics.

The above stated was just an example to explain the concept of Reverse Logistics. But Reverse Logistics plays an important role in todays buisness. Mainly when everything has been increasing day by day. There are many customers who are shopping online. there has been tremendous increse in the use of ECommerce and shopping sites. These happens onlyu when the customer returns the product, and the only scenario when customer can return, when the product quality is not good. It may be for clothes, electronics or groceries. For example if the clothes buyed are not up to the mark they are returned back and they are Remanufactured which means they are repaired. In case of electronics, the products are send to the manufacturers and are tested again before selling them to the customers. And if we talk about groceries, here the scene is different, it should be well checked before sending to the customer, because that is related to consumers health.

Any Organization will always want to create a good image for the brand in front of the consumers. They will never want them to return the products, they will always think of maintaining the relationship with them. And to do these they need to focus on the supply chain, increasing the quality reviews. At the same time they also need to focus on reducing the cost. For example, if they provide home delivery, they will require a person to deliver and if the product is returned, they will again require someone to pickup the returned product. Its double the cost, they need to pay delivery boy for two services. To monetize these things we can ask the customer to keep the reciept and ask them to not remove the tags. But these cannot be done for Groceries. So to overcome these, before sending groceries to any customer it shoyuld be thoroughly checked, and if any how the groceries delivered is not good, then in that case, a customer should eb allowed to open the product in front of the delivery boy or any person of that Retail shop. These may ensure that customers are not fooling them, and the customer satisfaction can also be maintained by exchanging the groceries, or refunding them the money back.

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