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Transcript

Return on Investment (ROI) for Reverse Logistics Initiatives: This metric measures the financial benefit gained from implementing reverse logistics programs. It compares the net profit generated from recovered products (through resale, refurbishment, recycling, etc.) to the overall costs associated with operating the reverse logistics system.

Concepts

Evaluate EffectivenessOptimize Processes.Make Strategic Decisions

Understanding ROI helps businesses:

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ROI acts as a financial compass for businesses with Reverse Logistics programs. • Measures Efficiency and Effectivenes • Guides Decision-Making • Supports Strategic Planning

Why is this Indicator Important

ROI of a Mobile Phone Take-Back ProgramCompany: Eco-Phone, a leading manufacturer of eco-friendly smartphones.Scenario: Eco-Phone implements a take-back program for used phones. Customers can return their old phones in exchange for a discount on a new model. Eco-Phone refurbishes the returned phones for resale or responsibly recycles them..

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Group 242008_2 / Date 14.05.2024

Loraine GomezFinancial Indicators in Reverse Logistics

EXAMPLE: