Backhaul

Posted in Operations and Supply Chain Terms, Total Reads: 4530
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Definition: Backhaul

Backhaul is generally used with regards to the communication or rather the satellite communication.

In terms of operations management, backhaul at times refers to a concept in the logistics management. It refers to the practice of not sending the cargo trucks back empty rather having them take some cargo back to the original source. As it takes almost the same time and fuel to drive an empty truck back, this practice becomes economically viable.

Some companies have exploited this practice to compete on cost one of them would be Walmart.


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