What Is Reverse Logistics?
Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers. Once a customer receives a product, processes such as returns or recycling require reverse logistics.
Reverse logistics start at the end consumer, moving backward through the supply chain to the distributor or from the distributor to the manufacturer. Reverse logistics can also include processes where the end consumer is responsible for the final disposal of the product, including recycling, refurbishing or resale.
When Is Reverse Logistics Used?
Organizations use reverse logistics when goods move from their destination back through the supply chain to the seller and potentially back to the suppliers. The goal is to regain value from the product or dispose of it. Worldwide, returns are worth almost a trillion dollars annually and have become increasingly common with the growth of ecommerce.
The objectives of reverse logistics are to recoup value and ensure repeat customers. Less than 10% of in-store purchases are returned, compared to at least 30% of items ordered online. Savvy companies use reverse logistics to build customer loyalty and repeat business and to minimize losses related to returns.
Reverse Logistics vs. Traditional Logistics
Traditional product flow starts with suppliers and moves on to a factory or distributor. From there, the goods go to retailers and customers. Reverse logistics management starts at the consumer and, moving in the opposite direction, returns products to any point along the supply chain.
Well-designed supply chains are responsive to changes and can handle some reverse logistics requirements. This reverse process can return products one step back in the chain or to the original supplier. They can even send returned products back to regular sales or discount channels (like liquidators).
The post What Is Reverse Logistics? Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers. Once a customer receives a product, processes such as returns or recycling require reverse logistics. Reverse logistics start at the end consumer, moving backward through the supply chain to the distributor or from the distributor to the manufacturer. Reverse l appeared first on My Academic Papers.
