"Rather than have a separate third-party handle distribution and incurring duplicate transportation and carbon footprint costs, we do everything in one facility and cut down on the need for multiple shipments," Brouillette explains. As an additional green benefit, Ryder uses recycled cardboard and paper rather than petroleum-based products when it repackages and ships returned goods to secondary sales channels. "At our request, they try not to put anything into the waste stream that has a negative effect on the environment," Sciarrotta says. "We view reverse logistics as the ultimate recycling process," he adds. Questions: 1. How will you assess the practice of Philips Consumer Lifestyle in terms of efficiency of its supply chain management particularly the reverse logistics? 2. Do you think the implementation of reverse logistics will really add up to the earnings of the company? Defend your answer. Rubric: Criteria Excellent 4 Good 3 Fair 2 Poor 1 Clarity of All the thoughts Most of the Some thoughts The thought thoughts were very clear. thoughts were were clear. can't be clear understood. Reasoning The stand was The stand is The stand is not The stand is well reasoned somewhat so reasonable. completely out reasonable. unreasonable.manages the distribution of those repackaged goods. If they can't be resold, Ryder disassembles, sorts, and segregates parts by product type and works with the recycler to ensure they are disposed of in an environmentally sensitive way. Most of Philips Consumer lifestyles returned goods still function well, so the company relies on thirdparty logistics provider Ryder Stipply Chain Solutions to handle returns correctly. To ensure consistency, a technology solution guided by business rules determines how to direct the returned product through each step in the reverse logistics process. Here's how it works. Ttl-ll at lH'u-'l'l'l' f'hrltp-i modem 1W urtul at III-sin FIN-ung lunar \"Our goal is to determine the greatest value Philips Consumer Lifestyle can get from its returned assets, and execute in a green-friendly fashion as quickly and costeffectively as possible,\" says Chad Burke, director, supply chain excellence for Ryder. To that end, Ryder developed an lT solution with business rules that govern when goods should he set up for resale or put through the disposition process. \"We make a business decision on returned products based on their cost and retail sale price point,"I Sciarrotta explains. \"A product that sells for less than $1013 at retail, for example, is not worth reirbishing.\" The IT solution has increased the velocity of reverse logistics for Philips Consumer Lifestyle, and brought muchneeded transparency to the process. \"The system gives Philips immediate visibility to what is being returned, when credits have been initiated, and what path those products will take, as well as a feel for the amount of refurbished inventory it has on hand,\" Burke explains. \"This visibility to the whole process helps the company make better decisions and lessens its impact on the environment.\" Ryder also handles reverse transportation for Philips Consumer Lifestyle, consolidating product returned from retailers to \"reduce the number of trips, and the associated cal-hon footprint and costs,\" notes Norm Erouillette, Ryder's group director, supply chain solutions. Having Ryder handle both the reverse logistics processes and forward distribution of repackaged goods out of its Grove point facility allowed Philips Consumer Lifestyle to cut its transport costs and fuel use, and leverage its building's carbon footprint. At this point, you are now ready to deepen your understanding about the distribution channel and the nature of the supply chain management. Direction: Read and analyze the given Case study about Philips Consumer Lifestyle then answer the given questions below. Please be guided with the rubric given. Case Study: Philips Consumer lifestyle Sustainability + Protability = Total Reverse Logistic Efciency By Amy Roach Partridge, June 20] 1 Consumers who purchase a Sonicar'e toothbrush, decide after a few uses that it's not for them, and return it, probably never think about what happens to that product after they receive their refund. But for Philips Consumer Lifestyle maker of Sonicare. Norelco shavers, Event baby products, and a variety of consumer electronics goods what happens to returned products is crucial to the bottom ]ine and to its sustainability goals. Because of the nature of their use, returned products such as toothbrushes, shavers, and baby bottles cannot be resold and must be disposed of. But just heaping them in a garbage dump does not meet Philips' zeronlandll goal. To make sure its products do not end up in landlls, Philips works with third-part3Ir logistics provider Ryder Supply Chain Solutions to select partners that can provide proper disposition. \"Our zerolandll goal is critical when selecting partners,\" notes Tony Sciarrotta, senior sales manager for Philips Consumer Lifestyle. \"We don't want a partner to put our products in a dumpster.\" Seiarrotta's division also has stringent environmental guidelines for handling returns of its consumer electronics goods. Together with Ryder, it has crafted a reverse logistics process that helps it refurbish, reuse, and resell nearly 80 percent of these returned goods. Because most of the nished goods returned to Philips Consumer Lifestyle still function well, the key emphasis is on repackaging and reselling these products as refurbished goods and doing so in a. costeffective and green manner. Returned products are shipped to a 500,000squarefoot facility in Groveport, Ohio, which Ryder operates for Philips Consumer Lifestyle. There, Ryder runs a triage operation to determine if goods are resalable or malfunctioning, and whether it makes business sense to repair them for resale, or dispose of them [See chart]. If they are to be resold in a secondary market, Ryder