Overview
This lecture covers track and trace systems in supply chains and the concept of reverse logistics, highlighting their importance for companies, consumers, and environmental sustainability.
Track and Trace Systems
- Track and trace systems electronically record shipment paths, helping anticipate and avert supply chain disruptions.
- Most shipments can be traced using GPS devices, but tracking individual products, especially produce, is harder.
- Electronic product codes and RFID tags exist but are not yet widely used.
- Product tracing is crucial for responding to contamination issues and maintaining consumer trust in product origins.
- Global initiatives, like TraceTracker, aim to enable tracing from raw ingredient to end product.
Importance of Product Tracing
- Companies use tracing to avoid delivery errors, theft, or spoilage, minimizing loss and improving customer satisfaction.
- Consumers want transparency, especially during product recalls or safety scares.
- Inability to trace specific products can harm innocent producers during contamination events.
Reverse Logistics
- Reverse logistics refers to moving used, damaged, or waste products back through the supply chain to recover value.
- Patagonia uses reverse logistics to recycle worn garments into new products for environmental benefits.
- Specialized firms like Genco help retailers recover value from unsellable or defective goods.
- Upcycling companies like TerraCycle turn waste into new products, creating value and reducing environmental impact.
- Reverse logistics can save money and support sustainability initiatives within organizations.
Key Terms & Definitions
- Track and trace systems — electronic systems used to record and monitor the movement of shipments.
- Reverse logistics — process of moving used or defective products and materials back up the supply chain to extract value.
- Upcycling — converting waste materials or products into new higher-value items.
- RFID — Radio Frequency Identification, technology for automatic identification and tracking.
Action Items / Next Steps
- Review the role and workings of track and trace systems in modern supply chains.
- Understand examples and benefits of reverse logistics in business operations.
- Prepare answers for: "Why is tracking important to companies and consumers?" and "What role does reverse logistics play in the supply chain?"