Reverse Logistics

Reverse logistics is the management of operations dealing with the reuse of products and materials.   The main goal of reverse logistics is to recapture the original value of a product or facilitating its proper disposal through the effective tracking of this product from the point of consumption to the point of origin. In simple terms reverse logistics is inventory management of the product after the point of sale for proper reuse or disposal. Remanufacturing and refurbishing are typical processes involves in reverse logistics. This type of logistics is done to save money as well as environmental resources.

Reverse logistics is the opposite of forward logistics which involves getting the product into the market, commonly known as the forward supply chain. Although the reverse supply chain was not a popular agenda for corporations and manufacturers in the past, the recent trends advocating the use of environment-friendly resources are now triggering a boom in interest in reverse logistics. More and more companies are also realizing that a great amount of savings will result by implementing reverse logistics systems. 

Logistics services are provided by a professional logistician who is often certified by professional logistics associations.

Reverse logistics is one type of logistics. Logistics, by definition is the management of the flow of goods from the point of development or production to the point of consumption by the end users.  Logistics was a management system used primarily by the military but has now gained widespread use among businesses as well.

Creating an Efficient Reverse Supply Chain

An efficient reverse supply chain involves various steps. For one,   the development of a good reverse logistics system should be coupled with strict implementation and application on all levels of organization. This also includes the development of an effective system for the disposition of returned goods. Another important factor is the creation of a clear reverse logistic physical information flows, where a group of people are assigned to handle returns and reverse logistics policies.

Types of Reverse Logistics Services 

Common types of logistic services include customer service, depot repair, recycling, refurbishing, warranty and asset management, as well as end of life manufacturing.