What is Reverse Logistics?

Define Reverse logistics?

Reverse logistics is a main component of service lifecycle management (SLM). Any process or management after the sale of the product involves reverse logistics. It is “the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. It usually involves returning a product to the producer or distributor or sending it along for processing in the final stages of the product's lifecycle. The product would travel in reverse through the supply chain network in order to retain any use from the defective product. The goods thus move from the customer to the distributor or to the manufacturer.

Reverse logistics is basically stands for all operations identified with the reuse of products and materials. It is the set of activities that is conducted after the sale of a product, such as servicing, repairing, remanufacturing, refurbishment, returns management, recycling and waste management, warranty management, warehouse management, ,for the purpose of recapturing value or proper disposal. Reverse logistics is sometimes called aftermarket supply chain, or aftermarket logistics.

Effective reverse logistics is believed to result in direct benefits, including improved customer satisfaction, decreased resource investment levels, and reductions in storage and distribution costs.

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