What is Reverse

Logistics?

• Reverse logistics refers to the supply

chain process of returning products
from end users back through the supply
chain to either the retailer or
manufacturer.
• Reverse logistics also includes executing
and managing return or exchange
related processes like exchange orders,
refurbishing and repair requests, and
return disposition, Reverse Logistics
offers condition-based returns
processing.
Types of reverse logistics
Returns management Return policy and procedure
• Most common type.
• Policy against which all customer returns are measured.
• Deals with regular customer returns and should represent a seamless,
hassle-free experience in order to boost customer loyalty and brand image. • It's good practice to keep these policies visible and easily accessible to customers
• Should be followed consistently by both customers and employees
Remanufacturing or refurbishment
• Helps organizations and retailers from forfeiting profit
Packaging management
• Helps eliminate unnecessary waste.
• Reuse packaging in order to reduce waste and save cost, instead of new
packaging for returned items.
Unsold products
• Returning items from end users or fulfillment centers back to manufacturers
• Commonly the result of delivery refusal, poor sales End of service life
• Returned at the end of the product’s useful life.
Delivery failure
• Manufacturers manage proper environmental disposal.
• Products cannot be delivered, they are returned to fulfillment centers
where they may be shipped back to the manufacturer
• Correcting the issue and resending. Rental equipment
• Rented or leased products
Repair and maintenance
• Sent back to the manufacturer for either disposal, recycling, or redeployment.
• Consumer electronics
The reverse logistics process
Depends on the:
• Type of reverse logistics
• Type of business the organization operates and in which industry
The five stages of reverse logistics
The five stages of reverse logistics
The goal of successful reverse logistics
• The goal of successful reverse logistics is to keep products moving in circularity
so that manufacturing, distribution, shipping and delivery, returns, repairs, and
disposal can all remain in sync as part of a constantly spinning model of
efficiency.
• This lower costs for organizations and subsequently their customers and end
users
• Adds value for the organization
Strategies to optimize reverse logistics
• Automate processes - Warehouse Management System (WMS) and Inventory
Management System (IMS).
• Use predictive analytics to anticipate returns
• Gather customer data
Gatekeeping
• It is the process of evaluating and
accepting return requests and
inspecting returned products to
meet the requirements for a
product exchange.

• Accept products that are damaged

only.

• Cost-effectivity for the company

Avoidance

• The goal is to screen products

before they enter the reverse
flow of logistics through the
supply chain.
• Minimizes the number of
returns
• Avoidance and gatekeeping
help from being overcrowded.
References
• https://www.ascm.org/lp/reverse-logistics/
• https://www.netsuite.com/portal/resource/articles/inventory-management/re
verse-logistics.shtml
• https://www.dhl.com/discover/en-global/logistics-advice/essential-guides/w
hat-is-reverse-logistics

• Admin. (2019, September 19). Reverse Logistics and Returns Management - Land, Sea, & Air Shipping Services -
InterlogUSA. Land, Sea, & Air Shipping Services - InterlogUSA.
https://www.interlogusa.com/answers/blog/reverse-logistics-returns-management/#:~:text=Effective%20gatekeeping%20and%
20avoidance%20strategies,decrease%20your%20damaged%20goods%20costs
.