Reverse Fulfilment

Posted in Operations and Supply Chain Terms, Total Reads: 140

Definition: Reverse Fulfilment

Reverse Fulfilment is the process of the product moving back from end consumer to retailer and then finally to the manufacturer, when the consumer might want to return the product. When the product reaches back to the manufacturer, it can refurbish the product and sell it at a discount or if the product is damaged then it can use the components which can be utilized in the other product and scrap the remaining components.

Over the years the process of reverse fulfilment has been improved by the companies so as to improve the customer retention and enhance the experience of a customer. In India, e-commerce companies like Snapdeal, Amazon and Flipkart have improved the reverse fulfilment process over the last 5 years.

On the other hand, a conventional supply chain is the product flows from manufacturer to the retailer who sells it to the end consumer. The consumer makes the purchases and then takes the product.

Example of reverse fulfilment: Apple sells the returned iPhones by refurbishing them at a discount. This practice is very common in the United States.



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