Our organization is apparel producers and sold through 30 country wide retail outlets. As a policy customer can bring product to a retail store (collection point) free of charge for sake of alteration. In peak season, reverse logistics initiated from each retail stores almost on daily basis. Our organization has no direct financial incentive for implementing a reverse logistics system. People in organization regarded reverse logistics as cost center. Reverse logistic function taken as burden no one is interested in improvement of this important process. Please suggest, is there in any need to improve efficiency of reverse logistics and why?
We are continuously facing fierce competition on finished goods unit cost. To remain competitive targets are set for cost reduction within supply chain as well. We have the option to move on low cost sources of raw material from local to global. What would be deciding factors in favor of off-shore low cost source?