Reverse Logistics

The evolution of reverse logistics for manufactured products is developing in direct proportion to the rapid advancements in technology and the subsequent price erosion of products as new and improved products enter the supply chain at faster rates. Logistics companies, which now provide services from transportation to warehousing and inventory management, will soon have to expand their products basket to include value added services such as packaging, labelling and reverse logistics. Reverse logistics is the logistics process of removing new or used products from their initial point in a supply chain, such as returns from consumers, over stocked inventory, or outdated merchandise and redistributing them. Using reverse logistics, retailers are now being proactive and turning these operational challenges into competitive advantages and incremental revenue streams. Reverse logistics, the handling and disposition of returned goods, used to be something that happened in the back room and wasn't considered strategic.