Reverse Logistics is a strange term, maybe many of you will not really understand the essence. As well as its role in the Supply Chain.
Viewing: What is reverse logistics
Logistics in practice:
Reverse logistics appears in our daily lives as well, which is the work of collecting, sorting, inspecting, transporting, sorting, treating, reusing… From landfills, beer bottles, water sweet, the water bottle we are still using every day. Or products that are having problems or have many errors that affect consumers. Typical manifestations are electronic devices, clothing, food, pharmaceuticals – cosmetics, etc.
Along with the development of e-commerce boom comes the diversification of products. It shows that many problems arise such as: the amount of waste is increasing with alarming numbers.
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The effect of reverse logistics
Buying and selling behavior has become more convenient with just a small operation on a smartphone. Or the computer means that the customer has no control over the quality and effectiveness of the product.
Besides, the product may appear defective during production or during transportation. Also partly leading to the situation of return and withdrawal is now taking place quite popular. According to the Economist magazine, these problems are getting harder and harder to control.
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The recall and warranty of defective products has a great impact on businesses or countries. Because it greatly affects the responsibility and credibility of customers. Currently, there are businesses that can guarantee reverse logistics such as: Apple, Samsung, Thegioididong, Lazada, .. As well as it ensures, maintains a green ecosystem, cleans the environment.
The main role of reverse logistics:
1. Create flexibility in the supply chain, smooth for the forward logistics process (Forward Logistics).2. Reverse logistics contributes to improving customer service levels.3. Reverse logistics helps save costs for businesses.4. Helps create a “green” image for the business and is environmentally friendly.
In fact, very few manufacturers think about dealing with a recall mess. Or will choose a product price reduction policy with the desire to solve it quickly. In the US, there are a number of retail businesses such as Estée Lauder, Fedex, etc. They will buy back the defective and potential products and then do the “regeneration” phase. In order to conquer small markets, e-commerce channels and export through developing countries. Indeed, the money they collect is a “bargain” not small from “garbage dumps”. Maybe you will understand more than “kind neighbors” to sida, Secondhand like new 99% already!