Reverse Logistics

What is Reverse Logistics?
Logistics is defined by The Council of Logistics Management
as:
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 origin to the point of consumption for the purpose of
conforming to customer requirements.
Reverse logistics includes all of the activities that are
mentioned in the definition above. The difference is that
reverse logistics encompasses all of these activities as they
operate in reverse. Therefore, reverse logistics 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.
Re manufacturing and refurbishing activities also may be
included in the definition of reverse logistics. Reverse
logistics is more than reusing containers and recycling
packaging materials. Redesigning packaging to use less
material, or reducing the energy and pollution from
transportation are important activities, but they might be
Chapter 1: Importance of Reverse Logistics 3
better placed in the realm of “green” logistics. If no goods or
materials are being sent “backward,” the activity probably is
not a reverse logistics activity.
Reverse logistics also includes processing returned
merchandise due to damage, seasonal inventory, restock,
salvage, recalls, and excess inventory. It also includes
recycling programs, hazardous material programs, obsolete
equipment disposition, and asset recovery.
Respondent Base
Companies included in this research are manufacturers,
wholesalers, retailers, and service firms. In some cases, a
firm may occupy more than one supply chain position. For
example, many of the manufacturers are also retailers and
wholesalers. The supply chain position of the research
respondents is depicted in Table 1.1.
Table 1.1
Supply Chain Position
Supply Chain Position Percentage of
Respondents
Manufacturer 64.0%
Wholesaler 29.9%
Retailer 28.9%
Service Provider 9.

This entry was posted in C.W.T Latest News. Bookmark the permalink.

Comments are closed.