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Revolutionizing supply chains: The power of recovery logistics

Revolutionizing supply chains: The power of recovery logistics

A revolutionary tide is sweeping away traditional practices within the logistics and transportation industry and recovery logistics.

A revolutionary tide is sweeping away traditional practices within the logistics and transportation industry and recovery logistics. Not only does it redefine how businesses operate but also shapes the future of the transportation and logistics industry, particularly in Asia.

According to Amertrans Logistics, recovery logistics can help any business get back on track more quickly after a disaster, and any event that can disrupt the normal flow of logistics.

Recovery logistics aids in setting up and maintaining basecamp, remote fuel and energy, recovery equipment, project oversight, and transportation. These services help systematically shape recovery operations. The focus is more on optimizing resources and minimizing waste through industrial recovery, recycling, and reusing in the supply chain process.

Asia as the key player and factors behind recovery logistics

Taking a panoramic view of the recovery logistics market in Asia, it’s evident that the landscape is moving forward. Wherein, the economic value of this sector is steadily on the rise, propelled by a growing awareness of environmental issues and a desire for more sustainable business practices.

Meanwhile, the increasing demand for consumer goods and numerous environmental concerns made recovery logistics a must-consider when it comes to sustainability. Several factors usher recovery logistics movement across Asia.

First is the stringent regulations and environmental policies. Business owners are compelled to rethink their strategies to get by these regulations. Governments in Asian countries are incentivizing eco-friendly practices, making these companies adopt recovery logistics for compliance and progressive management.

Second, consumer preferences are shifting to sustainable products and services. Because of this, businesses needs to restructure their supply chains, integrating recovery logistics to meet these evolving demands.

Leading players in the industry, such as China, Japan, and South Korea, driven by innovation and environmental consciousness, are spearheading initiatives to optimize the recovery process. These initiatives range from implementing cutting-edge technology to investing in research and development, all geared toward enhancing the efficiency and sustainability of recovery logistics.

Recovery logistics in action

The varying geographical landscapes in Asia makes the region prone to natural disaster. Such include typhoons, tsunamis, earthquakes, and other phenomena that are often escalated by climate change. This made recovery logistics a must for both business purposes and social responsibility. Often, said initiative aids in the mitigation of the aftermath.

Northern Kyushu, Japan’s case in July 2017 where Asakura City was badly affected by torrential or heavy rains, showcases the importance of last-mile delivery. Sagawa Express. a Japan-based transportation company, frontlined logistical bases management.

They worked on the procurement, sorting, and delivery of emergency supplies. In regards, a private sector movement was formed in Japan, called “The Social Emergency Management Alliance or SEMA.”

Another notable effort is the engagement of United Parcel Service(UPS) in ushering resilience of Micro, small, and medium enterprises or MSMEs in the Philippines in 2021.

UPS, a global logistics services provider, partnered with The Philippine Disaster Resilience Foundation (PDRF). They developed the Katatagan-in-a-Box mobile app that provides tips to MSMEs on business continuity plans.

Additionally, UPS rendered logistics support with Php 5 million to PDRF. This is in regard to the Taal Volcano eruption, the COVID-19 pandemic, and Super Typhoon Rolly.

The recycling connection of recovery logistics

Unlike conventional logistics, where goods flow linearly from manufacturers to consumers, recovery logistics operates cyclically and helps keep the supply chain more efficient. Recycling and recovery even help customers to return their items to sellers and manufacturers for recycling. 

While some people view recovery logistics as a method to recover materials, most of which refer to disaster management. It is a green process that helps in regaining some value in the supply chain. As such,  Keyence noted that recovery logistics is just the return flow of return from consumers and waste.

Recovery logistics renders a comprehensive strategy. It incorporates recycling as an integral part of the supply chain and has a commitment to sustainability. Recycling forms a cornerstone of the whole process, emphasizing the eco-friendly aspect of the process.

Products are designed with recyclability in mind, and post-consumer waste is collected, processed, and reintroduced into the production cycle. This closed-loop system ensures that resources are recovered and reused efficiently, reducing the strain on the environment and promoting sustainable practices.

Technology: The kingmaker of recovery logistics

Advanced technologies are now instrumental in the implementation of recovery logistics. Wherein, the commencement of digitization has immensely influenced the supply chain. 

Artificial intelligence (AI) and data analytics are being leveraged to optimize supply chain processes, enhance transparency, and track the lifecycle of products. These technological advancements not only increase operational efficiency but also enable businesses to make informed decisions, ensuring a seamless transition to recovery logistics. 

Moreover, recovery logistics can seamlessly integrate with e-solutions, offering a myriad of opportunities for online businesses. E-commerce entities, in particular, are harnessing the power of reverse logistics to manage returns and excess stock and inventory effectively. 

Through sophisticated tracking systems and data analytics, businesses can identify patterns and optimize their supply chains. This symbiotic relationship between recovery logistics and e-solutions reduces operational costs. Also, such enhances customer satisfaction, fostering long-term loyalty.

Recovery logistics in action

Across Asia, diverse cultures and economies converge, each embracing recovery logistics in unique ways. In countries like Japan, where space has a limit, efficient waste management and recovery logistics are essential.

China, on the other hand, demonstrates the colossal scale at which recovery logistics can operate, managing vast amounts of discarded electronics and appliances. These examples illustrate the adaptability of recovery logistics, showcasing its relevance across various contexts.

This data shows how important is logistics recovery and redistribution in times of disruption as businesses in the COVID-19 pandemic period are facing challenges. Often, these are material shortages, drop in demand, lesser manpower, cash-flow issues, and planning issues.

As such, the one that is most affected by material shortages are those in the advanced industries. A respondent from an auto company in Southeast Asia told McKinsey that they are facing raw-material shortages from tier-2 companies, including imported chemicals and aluminum.

To consumer-facing companies, they are experiencing more on decreasing demand ever since the pandemic hit. The labor-intensive industries are also suffering as they are facing restrictions amongst their workers due to physical distancing measures and protocols.

With that in mind, reverse logistics pave the way for reviving the supply chain. Moreover, it aids in regaining the value from the product or dispose of it according to Netsuite. One objective of reverse logistics is to ensure repeat customers in the long run and recoup the value thereof. This is to build customer loyalty and minimize losses to returns.

The process

The process of reverse logistics includes various plans and controls. Usually, it also involves managing returns and buying surplus materials and goods. Across different regions in the Asia-Pacific, recovery logistics varies with different economic incentives within their management operations.

One example is the use of empty tap containers in the beverage industry. These beverage companies want to revalue their containers by reusing them. It would require them to plan their logistics by managing loads and cleaning containers.

Aside from that, in the construction industry, reverse logistics will pave the way for recycling salvaged materials to newer sites. Hence, adapting sustainable practices to reduce waste and to save costs. 

The food industry also can benefit from reverse logistics as it deals with rejected food shipments by returning them to the supplier, creating a secure, quick, and reliable way to counter challenges in the logistics industry.’

A hero in the making

As mentioned above, recovery logistics plays a pivotal role in supply chain management by significantly reducing waste. By retrieving products that would otherwise end up in landfills, businesses not only contribute to environmental preservation but also save valuable resources.

This waste reduction translates into substantial cost-savings for companies, making recovery logistics a financially prudent choice. By streamlining the return process, businesses optimize their stock and inventory management, mitigating losses and enhancing overall efficiency.

Despite all the benefits that recovery logistics can do, business leaders should reimagine their processes and include short-term and long-term strategies to respond to these challenges.

One would need to take immediate actions to recover while considering other factors such as the availability of resources and demand fluctuations. Business leaders should implement and enforce protocols, Doing so will help them navigate through the disaster while increasing their bases to mitigate risks. Moreover, they should focus their efforts more on fulfilling the demand from priority customers.

Understanding reverse logistics is valuably important as it will open the door to minimizing risks. One of its advantages is to provide an increase in quality control and traceability. This data system will help shipping companies to correct vital information to avoid potential issues that lies ahead.

Recovery logistics can also reduce product spoilage and waste and avoid losses in overall revenue, thereby reducing costs in the long run. With these effects, recovery logistics can create a better brand image and retain customers as well.

Shaping a sustainable tomorrow

Recovery logistics, with its focus on sustainability, efficiency, and innovation, is reshaping the future of logistics and transportation in Asia. As businesses continue to embrace this transformative approach, the region is witnessing a paradigm shift in supply chain practices.

This means that for companies to pursue resiliency and shape their future, they combine reverse and forward logistics. The integration of recovery logistics not only ensures the efficient movement of goods but also paves the way for a greener and more sustainable tomorrow. In this journey towards a circular economy, Asia stands as a beacon of change, inspiring the world with its commitment to reshaping the landscape of transport and logistics.

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