Reverse Logistics

Posted in Operations and Supply Chain Terms, Total Reads: 882
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Definition: Reverse Logistics

All the processes which involves reuse of goods or replacement and the whole process of planning and implementing the flow of material in commonly known as Reverse Logistic. It includes how the goods which need replacement needs to be sent to the vendor and returned back to the client for resale or reuse.

Eg: A company produces product ABC and ships it to its final dealer through its supply chain network. This product is then sold to the final customer for his use. All the process involved after this comes under reverse logistic. If the customer finds the product defective then the company would arrange for the replacement or repair. Thus this product would now flow through a reverse logistic chain from customer to manufacturer. This entire process is known as reverse logistic.


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