The term Reverse Logistics is still fairly new in the business world. Many may think of it as reverse supply chain, returns management, or end-of-life management. But those terms have limits. Reverse Logistics includes many different aspects. Basically, whatever happens to a product after a consumer buys it is Reverse Logistics. This can include many things: returns, repairs, refurbishment, recycling, reuse, re-manufacturing, e-waste, etc. It also includes areas that are related: customer service, warehousing, warranties, sustainability and more. Reverse Logistics covers so many different area related to the life of a product after purchase.
There are still many manufacturers and retailers who do not know about Reverse Logistics. Those who don’t know about it are missing out. In addition, those who do not consider Reverse Logistics a big part of their business scope don’t understand it’s importance. For years, many companies have put so much focus into manufacturing and selling their products. However, without thinking about possible returns, repairs, and exchanges, a company doesn’t fully understand their true profit.
Without Reverse Logistics, company profits aren’t thinking about returns, which is a loss. When a consumer returns an item, for many different reasons, where does it go? Does it need repair or refurbishment? Can the retailer simply place it back on the shelf? There are many possibilities to consider. In addition, our society has become more and more aware of our planet and the harm that we have done to it. Now there are so many laws and policies in place to keep our planet from deteriorating at the rate it was. And companies need to take this seriously.
The article “Why Reverse Logistics is an Essential Part of a Circular Economy” goes into a lot of detail about these concerns. It explains why Reverse Logistics has become so important. Also what corporations need to do to make sure they are making it an essential part of their business. Whatever the product whether it’s electronic, apparel, toys, car parts, etc. The important part is the return or end-of-life and how it is handled. The author of the article, Remy Le Moigne says “There is no point getting a product back if its value cannot be recovered.” A concept every corporation needs to consider.