add share buttons

What Is Reverse Logistics?

Within logistics as a whole lives the cumbersome process known as reverse logistics. Reverse logistics has long been a neglected area. However, growing market pressures, such as online retail and customer expectations, are increasing the strain on this area of supply chains.

In order to stay competitive (and even profitable), it is crucial that companies carry out innovation in this area and adapt to shifting market demands. To know more about reverse logistics, you must refer to

Image Source: Google

Reverse logistics comprises the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. Hence the name reverse logistics.

The flow is from the point of consumption (i.e. the customer) to the point of origin (i.e. the manufacturer), to properly dispose of these or to recapture value.

Some reverse logistics examples are:

  • Return of goods by customers
  • Return of unsold goods by distribution partners due to contract terms
  • Re-use of packaging
  • Refurbishment of goods
  • Repairs and maintenance as per guarantee agreements
  • Re-manufacturing of goods from returned or defective items

One of the largest benefits of an effective reverse logistics process is that it can provide organizations with valuable product data. This is crucial for the correction of existing issues that might be causing the return of products.