Introduction:
Reverse logistics involves managing products moving backward through the supply chain, from customers back to sellers or manufacturers. This process is essential for handling returns, recycling, or disposal of products.
Definition:
Reverse logistics is the process of moving goods from their final destination back to the seller or manufacturer for returns, refurbishment, recycling, or disposal.
How It Works / Examples:
Imagine a customer returns a defective electronic gadget. The reverse logistics process would involve:
- Return Initiation: The customer requests a return authorization.
- Product Shipment: The item is shipped back to the warehouse or designated facility.
- Inspection and Processing: The returned product is assessed for defects and either repaired, refurbished, recycled, or disposed of appropriately.
Efficient reverse logistics can help recover value from returned products and reduce waste.
Why It Matters:
For new ecommerce entrepreneurs, understanding reverse logistics is crucial for managing returns effectively, maintaining customer satisfaction, and minimizing losses associated with returned goods.
Additional Resources:
Learn more about Reverse Logistics.