A Guide to Improving Reverse Logistics

By CIOReview | Friday, December 14, 2018

Reverse logistics is one of the fastest developing areas of the logistics industry that it is facing continuous changes in its scope and significance. It involves activities aimed at avoiding returns, reducing materials into the forward system so that fewer materials flow back and, ensuring possible reuse and recycling. It covers a wide variety of subjects and activities including movement of capital items and equipment to the next emergency response, excess or oversupplied goods being moved to other programs or organizations, removal of containers and packaging from response area, destruction of spoiled foodstuffs and pharmaceuticals out of date, and return of rejected goods to the vendors.

As a result of globalization, businesses have faced complete transformation, and the way customers buy a product and the way organizations sell a product has changed. The e-tailing or the e-commerce platforms have given a new option to the customers to return the product for any reason.

Today, organizations are on the path of servitization, and they have realized that reverse logistics is one of the most challenging tasks for them to perform. The reverse logistics or the product returns happen because of the particular needs and expectations of a customer about a product, or due to the dissatisfaction with a delivered product; this scenario has created a separate supply chain for a product return.

From the time a customer opts to return a product, it will be often be removed from the distribution channel, since the companies then consider them as damaged, expired, discontinued, or revoked. During the return process, the manufacturing department often operates a repair function in the organization; they repair the product on the basis of the customer’s feedback or a problem they have noticed and send them again to the distribution department. Reverse logistics is not only a concern for the manufacturers but also an important function for the contractors because they also have warranty and service activities.

Reverse logistics as an industry that is experiencing a great deal of change at the moment, and it pays to keep up with the latest headlines. It is considered to be a highly critical task for organizations that are facilitating aftermarket services. Above all, as the reverse logistics applications are continuously deployed and diversified, the future of reverse logistics management is much visible and promising to show efficient advancements.