Reverse logistics

Reverse logistics stands for all operations related to the reuse of products and materials. It 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. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics. The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with events that bring the product towards the customer. In the case of reverse, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer

 Handling product returns back through the pipeline - in an effective and cost-efficient manner -helps manufacturers to enhance customer satisfaction, achieve greater cost reductions, and when possible, recover some of the products' value.

Reverse Logistics activities include:

•Transportation of returned product back to distribution centre

•Processing returned merchandise for reasons such as damage, seasonal, restock, salvage, recall, or excess inventory

•Disposing of returned goods

•Recycling packaging materials and reusing containers

•Reconditioning, remanufacturing, and refurbishing products

•Hazardous material programs

•Asset recovery