Implementing leagility in reverse logistics channels

Abstract

The importance of the topic of reverse logistics has increased gradually over the past few years. This paper primarily focuses on one facet of reverse logistics, which involves the return of damaged products to be repaired by a manufacturer. The application of the ‘leagile’ paradigm in the reverse logistics process and its expected outcome, in terms of costs and lead-time reduction to consumers and to the manufacturer itself, is presented. The case study of an electrical appliance manufacturer based in Bangkok, Thailand, is used as an example to illustrate the possible impact of the ‘leagile’ concept on its repair and replacement services. It was discovered, with the application of the ‘leagile’ concept in the reverse logistics process, that lead-time for product repairs and returns, as well as costs involved with reverse logistics, have been drastically reduced while customer satisfaction has increased significantly.

Keywords:

• Reverse logistics
• Leagile
• Product return
• Thailand