Presently, reverse logistics is viewed as a very beneficial tool for companies which have to deal with commercial returns as well production wastes. Forward logistics lack the ability to manage them since they come up on the start of reverse supply chain. For this reason, there is an escalating importance of reverse flows. Generally speaking, reverse logistics is a new concept and is mostly utilized in developed countries primarily because such systems are costly.
In most cases, particularly, in the past decades, most organizations employed processes of forward logistics in their economic performance and their management was prosperous. However, in recent years, forward logistics have become inadequate for some management parts. Many enterprises started facing issues about high material costs of production, high costs of waste disposal, as well as issues with return products, Moreover, several countries made stricter environmental laws and this consequently resulted in companies looking for other ways to manage their production issues.
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Ideally, reverse logistics was established to manage the different problems that companies faced especially in waste treatment. Regulations which aim at safeguarding the environment have generally become more stringent. In light of this reality, the realization of the need to meet the law have made organizations to put into account strategies that can deal with reverse logistics. That is, what is the ultimate destination of goods and how can they be renewed in the chain? Therefore, reverse logistics incorporates the return flow, putting into account either defective packages/parts or goods consumed/returned that should be recycled. More specifically, a product’s life-cycle does not end when it attains its beneficial life. Thus, it is fundamental that customers together with enterprises comprehend the meaning of reverse logistics. It is vital to note that reverse logistics has the ability to manage the return of products from the clients back to the primary manufacturer.
Reverse logistics, in essence, concentrates on four central activities which include reuse, update of the product, recovery of material, as well as management of waste. For this reason, its main focus is to plan, function, as well as controlling the return of post-consumer and product after-sales. Ordinarily, the goods after-sales are identified by little utilization or the lack of sales. In other words, goods which will ultimately return to the company for a variety of reasons, such as errors, defects or transportation damages. Because the post-client goods are identified by the end of their valuable life, after their use they will be taken to recycling, landfills or reuse. In fact, aside from being post-client or post-sales products, it is mandatory for reverse logistics to ensure their return to productive cycle, increasing ecological, economic, and legal values as well.
Essentially, during the Return material Authorization (RMA) management screening procedure, each part is usually inspected and tested to determine materials that presently fall under the warranty of the manufactured for the recovery of credit. Ordinarily, the condition of each component is recorded and the process of RMA is managed to guarantee timely warranty. Products identified to be out of manufacturer warranty are correctly recycled. Markedly, identifying that reverse logistics can be advantageous to a company is vital for firms looking to decrease costs, increase efficiencies, enhance the experiences of customers, and establish sustainable practices of supply chain. For this reason, manufacturers are recognizing the latent value of streamlining return and returned products, repair and good reallocation processes.
Generally, there are various examples of prosperous reverse logistics such as Apple, H&M, and Dasani. First, Apple is a company that has demonstrated a prosperous system of reverse logistics. The company ideally manufactures iPhones and other apple products which are then sold in numerous stores across the globe. Consumers normally buy iPhones and enjoy them until they want to upgrade their product. When clients return to a particular store to purchase the latest iPhone model, Apple provides clients discounts on new goods if they return in their old product.
Second, H&M accepts clothes that have been used at all their stores globally. The clothes can be any brand or in any condition. Accordingly, the company will utilize the clothing they have collected from consumers to come up with an all-recycled clothing line which will, in turn, attract many customers. Admittedly, this kind of reverse logistics enables all consumer types to be a part of the brand even if they did not buy their clothes from H&M. Third, Dasani is an exemplary illustration of reverse logistics since the company has implemented numerous ways to gather and recycle their used products, including Dasani Bottle Bins on school compounds across the country. Ordinarily, consumers throw their empty Dasani bottles in this recycle bins and the company is able to gather and recycle the bottles.
In conclusion, reverse logistics is advantageous to firms which have to constantly deal with commercial returns as well as production wastes. Generally, it is a strategy in which a firm gathers and reuses their distributed products. The main reason behind reverse logistics is mostly economical. It minimizes costs which consequently increases profits. Besides decreasing costs, reverse logistics enables companies to be more environmental friendly by recycling their waste products. Therefore, companies should implement reverse logistics in order to gain a competitive edge in the business arena as well as preserving the environment.
