What is reverse logistics in supply chain?
Reverse logistics is the set of activities that is conducted after the sale of a product to recapture value and end the product's lifecycle. It typically involves returning a product to the manufacturer or distributor or forwarding it on for servicing, refurbishment or recycling.
Types of Reverse Logistics
What is reverse logistics with examples?
Some reverse logistics examples are: Return of goods by customers. Return of unsold goods by distribution partners due to contract terms. Re-use of packaging.
The basic reverse supply-chain logistics model operates independently of the forward supply chain that delivered the original product. When a firm controls the full process of forward and backward shipment the result is called a closed-loop supply chain.
Does Amazon use reverse logistics?
The second thing Amazon does well is it recovers profits through its Amazon Warehouse Deals reverse logistics policy. Through its repair or refurbishment and repackaging operations, Amazon can resell used products instead of losing money on failed or unwanted items.08-Jan-2021
The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.
What are the main drivers of reverse logistics?
Generally, the companies carry on reverse logistics because of the profit, obligatory forces or social pressure. According to this classification, the drivers are named as; economics, legislation and corporate citizenship (De Brito and Dekker, 2004).
Reverse logistics is an important part of the supply chain in a variety of industries, including automotive, electronics, pharmaceuticals, and others. Reverse logistics services have been developed and implemented by countries all over the world to extract value from returned and damaged products.
What does 3PL stand for?
third-party logistics
The three components of reverse logistics management consist of Return Policy and Procedure (RPP), Remanufacturing or Refurbishment (ROR) and Waste disposal (WAD).07-Oct-2021
What is the difference between forward and reverse logistics?
In many cases, forward logistics includes product development, material sourcing, manufacturing, transportation to distribution centers, and final-mile delivery to a consumer. Reverse logistics refer to moving products and materials back into the supply chain post-delivery.09-Oct-2019
6 Benefits of an Efficient Reverse Logistics Process
Why is a reverse supply chain important?
Reverse logistics provides an opportunity to retain value for your business that would have otherwise been lost. By repurposing goods that may have become waste, you're able to generate unexpected streams of income, which only adds to your overall revenue.10-Nov-2021
Typical examples of reverse logistics and reverse supply chain include: Product returns and management of their resale. Remanufacturing and refurbishing of products. Management and sale of surpluses.
What is a downside of a reverse supply chain system?
Unexpected fees are incurred, like labour cost. Specific costs in this category can be customer relations and service labour costs, financial reconciliation labour costs, warehousing costs among others. Cycle times tend to be longer.22-Feb-2016
Amazon wouldn't share its overall returns numbers, but in 2021, the National Retail Federation estimates 16.6% of all merchandise sold during the holiday season was returned, up more than 56% from the year before. For online purchases, the average rate of return was even higher, at nearly 21%, up from 18% in 2020.10-Apr-2022
Does Amazon resell returned items as new?
“Every item returned to Amazon is carefully inspected through a rigorous process by our trained Associates,” a spokesperson told Nexstar via email. “If it meets our high standards to be resold as new, it's re-listed for sale.” That's the first and most obvious answer: It gets sold again.08-May-2022
Products may not be eligible for return in some cases, including cases of buyer's remorse such as incorrect model or color of product ordered or incorrect product ordered. Products marked as "non-returnable" on the product detail page cannot be returned.
What is 3PL vs 4PL?
A 3PL (third-party logistics) provider manages all aspects of fulfillment, from warehousing to shipping. A 4PL (fourth-party logistics) provider manages a 3PL on behalf of the customer and other aspects of the supply chain.
The major cause of conflict for logistics and marketing interface is related to 5Ps (product, price, place, promotion and packaging) of marketing. Without the successful link of logistics and marketing, the firm may be unable to provide good customer service, resulting in dissatisfied customer or a lost sale.14-Jun-2019
What are the 7 rules of logistics?
The 7 ''Rights'' Of Logistics
What is reverse logistics in supply chain?