Reverse logistics takes care of supply chain from final consumer origin to distributor or supplier. This can occur due to inventory excess, customer returns, obsolete products and seasonal inventories.
In logistics and supply chain world this system has become a strategy to facilitate waste recovery from productive or consumer activity through selective collection of various industrial, electronic or construction materials, it is also related with circular economy seeking to ensure that products, materials and natural resources remain as long as possible.
There are two types of reverse logistics:
Waste reverse logistics: consists of final product waste recycling and treatment.
Returns reverse logistics: consists of product returns from final customer to origin center. Caused by customer dissatisfaction, wrong delivery, defective product, among other reasons.
Reverse logistics benefits:
- Cost and time reduction.
- Proper planning and environment commitment.
- Production costs reduced by reducing raw material acquisition.
- Packaging costs reduction.
- New raw materials creation from recycling.
- Better distributors and customers relationship.
- Favors company image due to environmental impact reduction.
- Allows packaging recycling campaigns creation to build customer loyalty.
- Reduces products numbers in inventory.
- Aligns production chain.
Reverse logistics 3R’s: Reduce, Recycle and Reuse.
These 3 phases benefit seeks maximizing product use and sustainability before being destroyed, for this purpose achievement life cycle is extended to convert what previously were expenses into an income.
At the moment many manufacturers are using this discipline to extend products life aiming to streamline manufacturing processes, costs, generate less pollution and increase consumer confidence.
