Reverse logistics stand in contrast to the traditional or better known as forward logistics. While forward logistics is the process of moving goods from the point of origin to their final destination through a chain of supply link, reverse logistics is the process of moving goods from their final destination to a step or many steps back in the supply chain.

Reverse logistics works in a backwards motion to move goods from the customer to the distributor and/or manufacturer whereas forward logistics works towards moving goods closer to the customer. The goods are sent in backward motion either to receive their paid value or to dispose them.

 

Council of Supply Chain Management defines reverse logistics as ‘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 proper disposal.’

 

To take an example, if a product is found defective, the customer would return it to the retailer for which the manufacturing firm would arrange shipping of the product to a center where the product would be tested, dismantled, repaired, recycled or disposed. This example illustrates how a product goes through the supply chain in reverse order to capture and retain any use of the product or its constituent materials.

 

Currently, reverse logistics is an important phenomenon in commerce. The reverse logistics has proved advantageous as well disadvantageous for the companies depending on the management of reverse logistics. Many companies have faced loss due to the sheer number of returns and the cost that goes in processing these returns. However, effective reverse logistics has also resulted in direct benefits due to the customer satisfaction. There is a direct connection between reverse logistics and customer retention.

 

Reverse logistics is not limited to returns of goods by customers. Reverse logistics management also encompasses activities related to avoidance of returns, gatekeeping, disposal etc.

 

CCOM Telecommunications Pvt. Ltd. has years of experience in reverse logistics management. It provides the best costumers services in the field of telecommunications.