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Reverse logistics are those operations that involve the reuse of products. According to him reverse logistics entails moving goods from their typical end destination, back to the manufacturing process with the sole intention of recapturing value or ensuring that the products transferred are being properly disposed. On the same breath, different production and manufacturing activities such as refurbishing and remanufacturing form part of reverse logistics. In simple terms, therefore, reverse logistics encompasses those processes involved in the planning, controlling, implementation and adequate flow of finished goods, from the position of consumption backwards. Reverse logistics takes place in order to recapture value or to ensure that the products moved, are being properly disposed of away.
Reverse logistics does not only entail the reusing and recycling of packaging materials or products, but also involves redesigning the packaging materials. Redesigning is done to ensure that, less packaging material used in packaging, and reducing the level of pollution and energy consumption. Pollution is mainly brought about by importation and transportation of various products, among other things.
Researchers and policy makers alike, contend with the reality that, reverse logistics should cover those activities that bring products and services nearer to the consumer. Reverse logistics ensures that the products move back by one step in the supply chain, for instance, goods and services moving from the customer to the manufacturer or distributor. Reverse logistics in the contemporary business environment has been a challenge to many actors who operate n the market. For instance, retailers often confuse reverse logistics with returns, or disjointed operations-retailers face challenges, about how use cost efficient collection and returns systems for any products that respond to them.
The benefits of reverse logistics lies ability to process returned items further, hence improving their value. This further enables business to restock their inventory, make recalls, ensure disposition of obsolete equipments and asset recovery, just to mention a few. Different reverse logistics systems and software have been developed to help companies conduct their businesses in an orderly and cost effective way. However, it must be noted that, the use of reverse logistics varies according to the nature of the industry and the number of channels of distribution existing in each industry. For instance, industries, which have enormous returns have superior reverse logistics systems and vice versa.
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