Improving the performance of a computer company in supporting its reverse logistics operations in the Asia-Pacific region

A study was conducted on a leading US-based computer maker to examine its reverse logistics operations in the Asia-Pacific region. This US company had set up a spare parts business unit in Singapore to take care of the Asia-Pacific customers for its products, which were still under warranty or service contracts. Defective parts were sent to its US headquarters for refurbishment and repair, and subsequently return to the Asia-Pacific region. The study revealed a number of interesting findings. These included: about 50 percent of the products returned to the USA cost less than half the reverse logistics costs; the current information technology systems supporting the reverse logistics operations are not used in assisting the company's managers in making critical decisions but in data collection; and decision making on reverse logistics at each of the company's Asia-Pacific offices was inconsistent and lacked standardization. Recommendations were subsequently made to overcome some of the inefficiencies in managing the reverse supply chain.