What Is Reverse Logistics?
To understand reverse logistics, we first we need to define logistics, which in simple terms is the movement of goods or components from the manufacturer to the end user. Any product or component that comes off the assembly line in a factory begins a journey that will ultimately lead it into the hands of the end user. The item may pass through several handlers and middlemen for example wholesalers, delivery crews and retail stores, all of which require adding various degrees on complexity to the conveyance of the goods. This whole process can be termed as logistics.
When Is Reverse Logistics Used?
Reverse logistics is a similar ordeal, but as the name suggests the direction of the movement of the product is reversed and goes from the consumer’s hands to the manufacturer or original seller. There can be several reasons why products might be shipped back to its origination point including standard returns, warranty claims, malfunction, repair, exchange, or recycling.
What are the reasons for Reverse Logistics?
The process is becoming increasingly popular both because of innovation and necessity. Sellers, especially in the E-commerce space face fierce competition in today’s market and must offer consumers unparalleled convience and flexibility. Most buyers today will refer to the return policy before making an online purchase, which is why some sellers even include a pre-generated return shipping label in delivery packages just in case!
The modern necessity of the process makes it crucial for businesses to make any return of goods simple and convenient for the customers, while simultaneously ensuring the product returns in adequate condition when it arrives to the manufacturer or processing center. The condition of the product will often determine whether it can be refurbished or remanufactured to be sold once again in the future or be scrapped or recycled for raw materials. Being able to resell the product or recycle it for components helps companies recover some costs and avoid a total loss of merchandise.
