Reverse Logistics

Reverse logistics and return to the supply chain is often a process of ignorance and misunderstanding. Companies tend to focus on the forefront of supply chain management without exploiting the many opportunities afforded by reverse logistics (Benton, 2007). What they do not realize is that the effective management of reverse logistics can make them more profitable and add value to many other parts of the supply chain.

Reverse logistics (RL) is a complete reversal of traditional logistics or forward logistics (Beamon, 1999). Reverse logistics is defined as a process by which manufacturers can use products shipped from previous point of consumption for recycling and remanufacturing (Dowlatshahi (2000) and Carter and Ellram (1998)). Fiksel (1996) argues that some companies have opportunities to make product remanufacturing environmentally friendly. In heavy industries with complex supply chains, you should benefit from reverse logistics (RL). Thierry, Wassenhove, Van Nunen, and Salomon (1995) support the fact that the automotive industry makes maximum use of reverse logistics (eg BMW and General Motors). This trend is not limited to these companies, Hewlett Packard, Storage Tek and TRW also use reverse logistics as a supply chain process.

Reverse logistics (RL) is the opposite of traditional logistics or forward logistics. Reverse logistics is the process by which manufacturers accept products previously shipped from the point of potential recycling and remanufacturing. According to various research reports, reverse logistics is widely used in the automobile industry such as BMW and General Motors. Other companies such as Hewlett Packard, Storage Tek, TRW also use reverse logistics as a supply chain process. After reverse logistics, sooner or later, it will make companies more aggressive and become competitive in their own industry.