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Dr. Robert Gordon

Knowledge Management Group Director

RLBOK Update 6/13/2019

REVERSE LOGISTICS BODY OF KNOWLEDGE

The purpose of the Reverse Logistics Body of Knowledge (RLBOK) is to create an official standard for all Reverse Logistics Operations.  The RLBOK will examine the sub-knowledge areas of Reverse Logistics applications and theory and identify the best practices for each domain.  These best practices will encompass the skills, tools, knowledge, techniques, technologies and strategies to insure the success of the military, government, commercial and non-profit organizations and personnel, in carrying out reverse logistics operations.

1.       Market Research and Data Analysis of Reverse Logistics Operations

2.       Strategic Planning of Reverse Logistics Operations  (Jennifer Stacey and Lawrence Reeves)

3.       Innovation in Process and Service of Reverse Logistics Operations  (Dr. Alister McLeod)

4.       Project and Process Management of Reverse Logistics Operations (David Patton)

5.       Cost and Benefit Analysis of Reverse Logistics Operations (Dr. Oliver Hedgepeth)

6.       Communication and Micro-Data Management of Reverse Logistics Operations  (Robert Gordon)

7.       Leadership and Organizational Management of Reverse Logistics Operations (Tommy &  Brenda Rector)

8.       Research Data Protections Measures of Reverse Logistics Operations

Defining the Field of Reverse Logistics

By Dr. Robert Gordon, faculty member at American Public University

Reverse logistics has gone by many different names over the years, but the field has now come into its own. In the past, some have stated that reverse logistics is a sub-set of supply chain management, while others have proposed that it is limited to returns or recycling.

Some associations have made their own definition of reverse logistics, yet no institution has created a research- based, consistent and logical definition.  To this end, research is being conducted at American Public University to create a Reverse Logistics Body of Knowledge (RLBOK), with the goal is to define the official standard of operational practices and theoretical concepts for the field. 

The RLBOK examines the following eight recognized domains of reverse logistics applications and theory:

Domain 1 – Market Research
Reverse logistics is a market- driven process and must evolve dynamically through continuous improvement.  Reverse logistics is dedicated to embracing new technology and systems in order to meet the growing needs of the marketplace.

Domain 2 – Strategic Planning
A strategic plan for reverse logistics operations provides direction and guidance for how activities should be organized and coordinated. Understanding critical business issues and success factors allows an organization to develop tactical initiatives and decision models that can be used on an ongoing basis to achieve reverse logistics goals.   

Domain 3 – Innovation
Successful logistical organizations cannot maintain long- term success without a process improvement cycle that boosts innovation. This domain creates a process framework that supports long- term success through innovation. 

Domain 4 – Project and Process
Returns, recycling, recalls, and repackaging are all project- based activities that need to be connected with a common message and service.  Reverse logistics offers a common project platform that allows each of these reverse logistics issues to be addressed in a similar manner. 

Domain 5 – Cost and Benefits
This domain defines how to build a cost/ benefit process that not only finds the direct costs, but also quantifies the indirect costs and savings that are realized by a successful reverse logistics organization. 

Domain 6 – Communication
A reverse logistics organization exists to serve customers. Internal communication should mirror external communication.  In addition, the data and information associated with communication to the customer must be defined.

Domain 7 – Leadership
Effective leadership is essential for reverse logistics management.  Leadership research has shown that transformational leadership is effective during times of change; hence, reverse logistics management will focus on transformational leadership. 

Domain 8 – Research Data
Data management is essential as material needs to be tracked full- circle.   Data protection measures that keep information private must be an essential aspect the process. 

When completed, RLBOK will become the official standard for reverse logistics operations in the same manner as the Project Management Body of Knowledge (PMBOK) is the standard for project management.

About the Author

Dr. Robert Lee Gordon is currently an associate professor with American Public University System in Reverse Logistics Management program.  He has four published books, three regarding project management and one regarding reverse logistics in addition to dozens of articles.  Dr. Gordon curates a Reverse Logistics topic at http://www.scoop.it/t/reverse-logistics-by-robert-gordon2.

The emergence of the importance of reverse logistics has been a market driven process.  Because reverse logistics continues to increase in importance within organizations, a structured practice of market research and data analysis is required.  Reverse logistics recognizes that it is a dynamic area of research and because of this, reverse logistics must continuously evolve and grow dynamically through continuous improvement.  Reverse logistics realizes that market forces are changing and the only way to remain an essential organizational function and operational area is to embrace the market.  Reverse logistics is also dedicated to embracing new technology and systems and management practices in order to meet the growing needs of the market.

A strategic plan for reverse logistics operations provides direction and guidance for how activities should be organized and coordinated. The plan is dynamic and includes both short-term and long-term objectives based on internal and competitive analysis and organizational preferences.  Understanding critical business issues and success factors allows an organization to develop tactical initiatives and decision models that can be used on an on-going basis to achieve the objectives set forth in the strategic plan.    

All logistical matters pertain to process and innovation.  Successful logistical organizations cannot maintain long term success without a process improvement cycle that boasts innovation.  Reverse logistics is no different and this domain strives to create a process framework that supports long term success and innovation.  Reverse logistics would be lost without process and continued success must leverage process improvement.  This domain seeks to explain long term process and service through innovation.

Reverse logistics is an assembly of projects that are connected by a common framework. Returns, recycling, recalls, and repackaging are all project based activities that need to be connected with a common message and service.  Reverse logistics seeks to offer a common project platform that allows each of these reverse logistics issues to be addressed in a similar manner.  Consider the disconnect when an organization handles the returns process in an exceptional manner, but then handles a recall without the same level of professionalism.  A common project framework allows for a successful organization to address each project based activity in a manner that is efficient and successful.

Reverse logistics is not just about customer service, it is about building a successful organization.  This domain seeks to show how to build a cost benefit process that not only finds the direct costs, but it seeks to quantify the indirect costs and savings that are realized by a successful reverse logistics organization.  One cannot ignore direct costs and savings but one should not forget the indirect losses that can occur when a reverse logistics process is improperly handled.  One cannot directly quantify the lifetime losses of a single customer, but one can certainly understand the failure of customers to return to an organization.  One single improper return or recall can lose a customer for life.  This domain seeks to address these direct and indirect costs and savings.

Communication is essential to any organization.  A reverse logistics organization exists to serve customers and so a reverse logistics organization must align the majority of its communications outward.  Clearly, internal communication is essential but internal communication should mirror external communication.  Although this might seem intuitive, an effective reverse logistics organization must also manage information at a micro-level.  In this domain, micro-data management is defined as the data and information associated with communication to the customer (external and internal).  It is understood that there are many methods of communication and it should include in person communication, cyber communication, telephonic, mail, and others. 

Effective leadership is essential in reverse logistics management and an organization cannot harness the true potential of the human resources available without effective leadership.  Given that leadership research has shown that transformational leadership is effective during times of change, reverse logistics management has chosen to focus on transformational leadership as a best practice.  Transformational leadership can not only assist in a successful reverse logistics organization, these skills can also improve the organization.

Reverse logistics seeks to utilize research data protecting measures to not only protect the customer, but to protect all parties involved, directly or indirectly, in the process.  These measures not only cover the ethical concerns surrounding data but it includes the safekeeping and security involved.  Data protecting measures must remain as an essential aspect of reverse logistics so that customers and potential customers feel secure in the processes.  Since sensitive information is embedded in reverse logistics processes, all parties involved need to respect the need for privacy as well as for the safekeeping of research data.