subject: Reduce Costs And Add Efficiencies With Reverse Logistics [print this page] Reverse logistics, as the term implies, is the reverse of logistics. The Council of Logistics Management defines logistics as the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. Reverse logistics would mean the same except the fact that it operates in reverse. Hence, reverse logistics can be defined as the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
Today reverse logistics is an important part of supply chain management. There was a time when reverse logistics was considered a sheer waste of time, money, and efforts. However, today it has evolved to become an important entity in the world economy. This transformation was the result of the realization that reverse logistics could reduce costs, add efficiencies, and improve the customer experience. Here is a look at some of the advantages of reverse logistics.
* Retrieve value out of defective parts by salvaging and refurbishing defective equipments and parts
* Create scrap value for the enterprise by recycling packaging and defective materials
* Recognize out of date revisions and components immediately
* Save the cost of warehousing stock that has gone stale
* Transform old assets into valuable investments by remarketing complete systems, major components, and achieve partial or full recycling
* Discover reusable solutions for unutilized assets
* Monetize depreciating assets
* Extract more value from used or returned goods compared to the costs involved in the original supply chain
* Improve customer satisfaction and enhance customer retention by addressing issues associated with product returns effectively
Today enterprises have understood the hidden value of returned assets and the benefits of streamlining return, repair, and product reallocation processes to the enterprises bottom line. However, instead of executing logistics activities (both reverse and forward) within the enterprise itself, enterprises can outsource some or all of the activities to the industry experts. These logistics solution providers offer a variety of services such as
