The Importance of Processes in Reverse Logistics

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Business firms do everything they can to make sure their supply chain runs efficiently-so that their customers receive the products they want accurately and on time. But sometimes products are returned, and they have to be prepared to process returns just as efficiently.


least cost and highest efficiency). A reverse logistics operation is considerably different from forward logistics. It must establish convenient collection points to receive the used goods from the final customer or remove assets from the supply chain so that more efficient use of inventory / material overall can be achieved. It requires packaging and storage systems that will ensure that most of the value still remaining in the used good is not lost due to careless handling. It often requires the development of a transportation mode that is compatible with existing forward logistic system. Disposition can include returning assets into inventory pools or warehouses for storage, returning goods to the original manufacturer for reimbursement, selling goods on a secondary market, recycling assets, or a combination that will yield maximum value for the assets in question.
Reverse logistics, simply put, comprise all activities associated with a product/service after the point of sale, the ultimate goal to optimize or make more efficient aftermarket activity thus saving money. However, easy as it may looks , the processes involved requires a large degree of considerations coupled with careful planning.
Speed of retrieval is the primary measure of efficiency and ...
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