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Manufacturer and the Logistics Companies Activity With Examples

Date:  2021-05-25 13:23:31
3 pages  (655 words)
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IBM and Geodies

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After an item has attained an end of lease status, it is, therefore, the responsibility of the manufacturer to repossess the item. One of the benefits of reclaiming the item is that you can determine the usage of the product by the customers. This will make it possible for the manufacturer to fully understand the quality of the goods released into the market. This is because the time of release and return is measured against the usage or data handled. It will be possible to make adjustments to the quality as per the market usage. The goods being recollected and serviced by a third party and then resold without the involvement of the original manufacturer is a risk. This is because the third party may not have the equipment necessary to handle the repairer process as per the required standards ("Meeting the Reverse Logistics Challenge," 2016). In case they fail, the original manufacturer reputation may be eroded as the customer does not know the third party. Reselling of the refurbished machine may not correctly be reflected in the manufacturer's system. This denies the manufacture the profits from the resell. IBM, therefore, needs to handle the repair process as well as the reselling process. This will enable the company to control what it manufactures as new.


A manufacturer is required to keep his or her secrets away from the competitors. Therefore the markets they operate in need not to see them present their products at the same time. This may result into the consumer citing weaknesses in either of the products. Therefore it would not be ethical for DHL to make deliveries for BHSG as well as that of her competitor Electrolux. These are businesses that are competing for the same space and thus need not to have their products handled as it is currently. The problem of having the third party resolve product returns is not recommendable. BHSG needs to set up regional offices work d wide that can handle the repairs and product recovery that is otherwise being done by DHL on their behalf. This makes BHSG to miss on some important information like what are the market responses towards the products. When the products are taken and worked on by the retailers, makes the market condensed with the refurbished products which may not pave way for the entry of the newly manufactured products ("Meeting the Reverse Logistics Challenge", 2016). Lack of a recycling center in the local markets results in all the not repairable items being dumped openly thus landing in the hands of the retailers. They incorrectly assemble them with parts from other brands. Malfunctioning as a result of mixing brands may be directed to the company by the unsuspecting end users.

Lexmark and Schenker

Taking care of the customers by genuinely refunding the customers for returned products is a better way to retain the brand loyalty. However, the handling the RMA within a small period would require that the manufacturer to set up local centers to check the product before they are shipped to the manufacturer. Lexmark or Schenker have not arranged for one before. Therefore it will remain a cost to the manufacturer and the logistics company as sales may drop down due to the returns on sales (Staff, 2016). Having a local center can be attributed to one way of making a deal last much longer than being reversed faster. Therefore serving worldwide market requires centers to serve the customers which will make it, even more, appealing to the loyal customers as they trust that they can be helped faster. The manufacture, therefore, should delegate some of its responsibilities to their logistics provider to help in serving as the immediate care center (Staff, 2016).References

Staff, M. (2016). The 7 Deadly Sins of Reverse Logistics. Retrieved 18 November 2016, from the Reverse Logistics Challenge. (2016). Supply & Demand Chain Executive. Retrieved 18 November 2016, from

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