Question

Discuss the benefits of an effective reverse logistics process. Would you consider working in reverse logistics as a career choice?

Answer 1

Discuss the benefits of an effective reverse logistics process.

Answer: An effective logistics process includes both forward and reverse logistics.

Forward logistics refers to the usual optimized flow of raw materials through processing, production, inventory, distribution, and sales to the point of consumption/retail/stores.

While, the reverse logistics process refers to the reversal of the conventional value chain, and commences at the point of sale/consumption where the customer cancels/returns the product/item, it is collected from the customer and brought back at the warehouse/retail store to the point of origin/production for appropriate decision making and disposal or reuse.

Some of the benefits of an effective reverse logistics process include:

· Higher customer satisfaction due to effective return/refund policy and process

· Higher customer retention and repeat business

· Competitive advantage over firms that do not have a reverse logistics process as it provides higher service market share owing to proving greater flexibility and peace-of-mind to customers

· Higher transparency in the logistical operations, supplier feedback, and the supply chain

· Increased insight into consumer usage patterns and buying behavior by analyzing the rationale for product returns/rejects

· Flexibility of recycling, upcycling, re-processing, restocking and refurbishing own products to create another revenue stream/product line

· Improved environmental sustainability benefits due to adequate and safe disposal of unwanted product/equipment leading to the reduced carbon footprint

Would you consider working in reverse logistics as a career choice?

Answer: As the organizations are realizing the importance of reverse logistics, more organizations are creating a positive impact on the inclusion of reverse logistics in their supply chains. Therefore, as a career choice, this is clearly an emerging role and a growth area. Given the benefits to the business and the impact of reverse logistics on the present and future of businesses, I would definitely consider working in reverse logistics as a career choice. The customer-centricity of business is amplified by the inclusion of reverse logistics in the overall supply chain. This is totally desirable for brands to uplift their brand image and brand promise by showing that they care about customers even post-sales.