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Reverse Logistics 

What is Reverse Logistics? 

Reverse logistics concerns the movement of goods from customers or retailers back to sellers or manufacturers. Often, reverse logistics are required to process a return when the customer does not want the product. They are also used in situations where sellers have not been able to sell the product, for product end-of-life procedures, or where the customer is responsible for the final disposal of the product. 

Reverse logistics can be considered one part of the circular supply chain – it isn’t just about physically moving the goods back to the manufacturer, but also about what happens to those goods once they have been returned. 

Reverse logistics are required for several different scenarios, such as: 

  • Managing returns when the customer does not want the product, the product is faulty, or the wrong items have been delivered. 
  • When unsold goods need to be returned from retailers and distributors back to the manufacturer. 
  • Managing the refurbishment, repair and redeployment of rented or leased equipment. 
  • When a delivery fails and the product needs to be returned to the manufacturer via a postal sorting centre.  
  • When a product has reached the end of its life and can no longer be sold. 

What are the Procedures of Reverse Logistics? 

  1. Process the return with the aid of smart software that identifies and assesses the product and its condition, as well as authorising the product’s move back into the supply chain. 
  2. Ship the goods back to the manufacturer.
  3. Approve the refund or product replacement for the customer 
  4. Determine the next steps for the product – can it be resold and does it need to be repaired/refurbished first? If not, can it be recycled or does it need to be disposed of

Effective reverse logistics management doesn’t only focus on getting the products back to the manufacturer in a timely manner that is easy and convenient for the customer. Instead, reverse logistics should focus on how returns can be used to help rather than harm the business. 

This could include recycling, repurposing or reselling the product, effectively reducing the cost of waste and creating a more sustainable business model. Some product sale agreements may also include a clause that allows for the repair, maintenance, or refurbishment of a product, which will also require reverse logistics. 

Why Work with CHAMP 

With an increased emphasis worldwide on sustainability and limiting environmental impact, reverse logistics is no longer an afterthought for manufacturers and must be a core part of any supply chain management strategy. At CHAMP, we deploy the reverse logistics to allow our customer to: 

> Improve profit margin by having a structure returns system 
> reduce the downtime with refurbishment, repair or recycling 
> reduce unnecessary waste, increase the value of products and promote sustainability