Is reverse logistics part of supply chain?

Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers. Reverse logistics can also include processes where the end consumer is responsible for the final disposal of the product, including recycling, refurbishing or resale.

Where does reverse logistics impact the supply chain?

This could include how your product could potentially be reused, how it should be properly disposed of after use, and any other way where your expired product can create value. The reverse logistics that directly impact supply chains the most are the return of products from the end consumer back to the manufacturer.

What is reverse logistics and why is this important for retail firms?

Therefore, reverse logistics is the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or for proper disposal.

What are the disadvantages of reverse logistics?

Common Problems in Handling Reverse Logistics

• High reverse logistics cost.
• Inability to understand the rationale of returns.
• Poor visibility into products received.
• Inadequate labor resources to “handle” returns.

Why reverse logistics is required by many supply chains?

Perhaps the most important reason for reverse logistics is the profit increase companies can see by decreasing material costs. This rapid growth in the volume of returns causes huge uncertainties around reverse logistics, and puts pressure on supply chains to manage and implement product returns successfully.

Why do companies have reverse logistics?

Reverse logistics provide a way to extract the maximum value from products at the end of their life cycle. This includes the ideas of recycling where possible, repairing when it is plausible, among other ideas to extend the product’s lifecycle.

Why is reverse logistics an important supply chain function to the airline industry?

From OEMs and MROs to Corporate and Commercial aviation providers – effectively managing your spare parts inventory in the aftermarket can help you retain customers, recapture value and reduce write-offs.

Why is reverse logistics complicated?

“Logically a company should be concerned with the full product lifecycle, including managing the back-end process,” says Joan Starkowsky, president of Roadway Reverse Logistics, Akron, Ohio.

What is disposition in reverse logistics?

Reverse logistics activities involve the collection of returned products, inspection and sorting out into different categories, and disposition them for reuse, repair, remanufacturing or recycling. Disposition decision plays an important role in the performance of reverse logistics.

What does reverse logistics include?

In layman’s terms, reverse logistics involves moving goods from their typical end destination for the purpose of increasing value or for proper disposal. Reverse logistics includes the management and sale of surplus inventory or raw materials, as well as the returns of leased equipment, machines and other hardware.

What are the reasons for reverse logistics?

The primary goal of reverse logistics is to recover value from assets to increase revenue and reduce expenses. Establishing a reverse logistics strategy can also boost the efficiency of a traditional supply chain by separating the operations.