Question

Discuss the importance of reverse logistics for businesses/supply chains.(The answer should be at least 1 page.If you don't know the question, don't answer.)

Answer 1

Reverse logistics refers exactly opposite of standard supply chain and in this process, goods move from the customers back to the manufacturer or supplier. Reverse logistics very much useful in e-commerce businesses and companies like Amazon Inc. effectively work on return management.

Reverse logistics useful when goods are moved from their final destination location to recapture value or for final disposal and product may be returned because of the defective product, change in products design, etc

Types of reverse logistics

1) Returns

2) Return avoidance

3) Remanufacturing

4) Packing of product

5) End of life of the goods

6) Unsold goods

7) Delivery failure

8) Rentals and leasing

9) Repair and maintenance

Importance of reverse logistics for businesses /supply chain-

1) Customers satisfaction

2) Customers retention

3) Image building

4) Fast service

5) Developing loyal customers base

6) Reduced costs

7) Reduced losses and unplanned profits