Reverse Logistics Services
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 proper disposal.
By sending good back up the supply chain rather than disposing of them, reverse
logistics provides an environmentally-friendly, cost effective method of recovering
and reusing goods and materials after a product's life cycle has ended. Reverse
logistics also includes processing returned merchandise due to damage, seasonal
inventory, restock, salvage, recalls, and excess inventory. It includes recycling
and hazardous material programs, obsolete equipment disposition, and asset recovery.
Remanufacturing and refurbishing may also be included in reverse logistics, as the
process is more than just reusing containers and recycling packaging materials.
Remanufacturing and Refurbishing can be classified into five categories
The first three: repair, refurbishing, and remanufacturing involve product recondition
and upgrade before sending them back up the chain. These options differ with respect
to the degree of improvement. Repair involves the least amount of effort to upgrade
the product, and remanufacture involves the greatest. Cannibalization is simply
the recovery of a restricted set of reusable parts from used products. Recycling
is the reuse of basic elements that were part of another product or subassembly.
also includes redesigning packaging to use less material and reducing
the energy and pollution from transportation; however, these activities by themselves
might be better named "green" logistics, as they may not include returning products
to the point of origin. If no goods or materials are being sent "backward," the
activity probably is not reverse logistics.