Reverse Logistics
Reverse logistics is one of the biggest challenges faced by the e-commerce industry. It refers to the supply chain involved in the process of moving the product or item from the end-user or customer to the manufacturer or warehouse. The importance of reverse logistics comes into the picture when the consumer wishes to return the product.Consumers are oblivious to the cost and the extensive supply chain management involved in reverse management. The reverse logistics process should be clear to eliminate the confusion about how the product or item travels back to the source or warehouse.
When Is Reverse Logistics Used?
The nature and process of reverse logistics changes with the industry, products, and quantity of the products we are dealing with. Determining how the product will flow via the supply chain from the end-user to the manufacturer, source, or the company's warehouse is dependent on the return policies set by each company. Some companies also outsource this process to concentrate more on forward logistics. [Here are some tips to ensure inventory management].
5 Steps to Good Reverse Logistics
- Process the Return
- Deal with Returns
- Keep Returns Moving
- Repair
- Recycle
Types of Reverse Logistics
- Returns management
- Return policy and procedure (RPP)
- Remanufacturing or refurbishment
- Packaging management
- Unsold goods
- End-of-life (EOL)
- Delivery failure
- Rentals and leasing
- Repairs and maintenance