Mar 22, 2006 01:51 PM
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(Updated Mar 22, 2006 01:53 PM)
Reverse logistics is a process of planning whereby organisation can become more environmentally and cost efficient by recycling,reusing, and reducing the amount of materials used.
Reverse logistics starts when products or services are returned.There are many a reasons for returning,which can be broadly divided between those that are unplanned and undesired.The reasons for unplanned returns are that the customer changed his/her mind, the product was defective, the customer perceived the product to be defective ,the product was damaged in transit, a vendor error,warranty returns and product recalls.
Its not a new concept, Henry Ford unintentionally was reusing his good economic sense by dismantling the wooden cases from car batteries and reusing the places as floorboards in his early automobiles.was henry Ford an early environmentalist? It simply made good economic sense and just happens to conform to today's reverse logistics.
The impacts of reverse logistics can be demonstrated can be in five ways.Reverse logistics is an integral part of supply chain management,SCM donot end with the customer rather it has to go the most important phase of SCM,Thats REVERSE LOGISTICS.
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