We have all heard of logistics or forward logistics. It is a crucial part of any business or organization as it can be seen as the function that pumps in resources (inbound logistics) to the organization and pumps out products (outbound logistics) to its customers. Hence, without logistics a business would come to a standstill.
What is Reverse Logistics?
The typical definition for reverse logistics states that stands for all operations related to reuse of products and materials.
In normal terms we can define reverse logistics as the act of returning products and materials at least one step backwards in the supply chain.
Reverse Logistics has to do with recovering products or materials from their final destination. Usually, this is done in order to recall products or materials for reuse or destruction. Reverse logistics is as popular as logistics in this day of transportation.
Why Reverse Logistics?
Reverse Logistics or Backward logistics have sprung up as a result of the need to reuse products or materials and recapture the value. It has come to a point in the economic world that destruction of a product or material is not a simple task. Especially when it comes to toxic products or materials and even medicines, very special precautions need to be taken to destroy them. The manufacturer cannot simply rely on the retailer to perform that duty. Hence, a product recall is needed.
There could be products with incorrect labeling, outdated pricing, incorrect packaging and so on. These products need to be recalled immediately as well.
How Do Reverse Logistics Happen?
Reverse logistics could be as simple as transporting some goods from the retailer back to a warehouse, to reversing the products back to the manufacturer to recycle or even destroy. There could be instances where there are a few final destinations and even worst case scenarios where the products are with the end consumer.
Other instances are when reverse logistics is coupled with logistics, i.e. when recalled products are transported in the same delivery vehicles used for logistics as a result of route optimization.
Most times recalled products need to be stored separately when delivering and back in the warehouses. Hence, special tracking mechanisms should be incorporated to avoid a very costly mistake.
