What is Reverse Logistics?

Did you know that many businesses and companies simply don’t monitor the life of their products, such as electronic items, after they reach the consumer or end-user? You may have heard the term reverse logistics. It is a crucial part of the international supply chain that companies didn't think much about in the past. Keep in mind that if your business does not have a feasible reverse logistics plan, it is likely that you will end up losing revenue and profit and not even realize it. 

There is no doubt that in today’s world, sustainability is a big issue. This is why this kind of logistics is a vital aspect of any business, regardless of industry.

If you are a carrier, fleet manager, shipper, or driver, note that your primary focus is to get products to their destination. However, you should know that it is important to find out why your products sometimes come back to their point of origin. Reverse logistics is important for your business as it helps companies improve customer satisfaction, save money, help the planet, and enhance their public profiles.

What is Reverse Logistics?

We can define reverse logistics as the process of handling the return of goods and products from consumers or retailers to manufacturers through the use of the supply chain. So, it is similar to the conventional supply chain; however, it moves in the opposite direction.

This form of logistics usually involves various activities that are conducted after the product’s sale to recapture value. Some of the main objectives for the process are customer satisfaction, proper disposal, servicing, and recapturing value.

Typically, goods or products travel from their point of sale to the point of production or origin. These returned products then go through servicing, recycling, or refurbishing at the distributor or manufacturer. Did you know that many companies experience the dire need for reverse logistics whenever customers send back a product? Also, it is worth noting that reverse logistics is used heavily for electronic devices, such as tablets and phones, where refurbishment and remanufacturing are very common practices.

Environmental and Sustainability Benefits

You will be happy to know that reverse logistics is also a responsible process that helps the environment. This is because it decreases toxic waste, reducing the pollution caused during the production of new products. So, sustainability-conscious companies and businesses that struggle to get their supply chain sufficiently "green" often rely on this progressive process.

Final Thoughts

Even if your company is not using reverse logistics on a daily basis, you will likely need it at some point in the future.  Because of the pressure on shippers to develop positive customer experiences, returns will remain prevalent. This will make reverse logistics as important as traditional logistics in the modern supply chain.

Reverse logistics is used on a daily basis to create positive customer experiences and ensure a positive environmental impact.