A type of supply chain management, reverse logistics works to move goods back from customers to the manufacturer or seller. Businesses need to be worried about an engaging return process to create a good image in the eyes of their customers.Reverse logistics help in creating better customer relationships and promoting brand loyalty.
What is reverse logistics?
Reverse logistics is a process of moving goods from customers back to their original manufacturers of sellers. There are processes like returns, refurbishing, resale or recycling that calls for reverse logistics. Starting from the customer, the product moves to the distributor and from distributer it reaches the manufacturer.
When is reverse logistics used?
The process is used to move a product from the final destination back to the original supplier for the purpose of getting value from that product. With the growth of ecommerce, returns are increasing and as such their value. The logistics work to regain customers and promote a brand. This will also ensure that losses are minimised on returns.
Components of reverse logistics
There are different components of reverse logistics that focuses on different policies and procedures for things like remanufacturing, packaging, unsold goods, leases, repairs, and goods retirement. These are:-
- Return management, should be fast, straightforward, controllable and evident.
- Policies related to return and it’s procedures, should be consistent.
- Packaging management, for reuse of packing material.
- Remanufacturing and refurbishment, that includes repairs, rework, rebuild and reconditioning of products.
- Repairs and maintenance
- Rentals and leasing
- Procedures related to delivery failures.