The Reverse logistics

 The Reverse Logistics 

Hello everyone, I am Peeyush Pareek , pursuing my MBA second year from Amrita School of Business, Coimbatore. In this blog I am going to share Some gyaan on  “ Reverse  Logistics" 

 Reverse logistics is a process in which the end customers send the unwanted or used products to the supplier or manufacturers back. There are several reasons to send the products back to the supplier, if we take the example of e-retail, we can see to several reasons for returns of products like:   

1. 1. The wrong product was delivered to the customer 

2. 2. The customer ordered the wrong product 

3. 3. Packaging was not appropriate 

4. 4. The product was Broken before it arrived

5.   

 So, for this companies have to arrange the reverse logistics for consumers this will not only benefit the consumers but also the companies will be benefit as they gain the advantage of the customer service after purchase. Company will also get the tax benefits and also the environmental values are saved as the discarded material is not used for the landfills the companies also get the attention of customers by doing so and gain popularity. Customers nowadays check the return policy before whatever they buy. The companies which have clearly defined return policies are better off.    

 There several processes in reverse logistics are as follows: 

It starts from product acquisition, according to the Haward business review this step should be managed properly as this step creates value in the profit of this supply chain. The timing, quality and quantity should be managed properly in order to avoid most of the things get returned by the customers.  

Reverse Logistics comes the second, in which the products should be sent to the centres back via different logistics channels where the inspection and quality check should be done. The Inspection will need some predefined system for particular products. After this segregation should be done according to the degree of the reusability. It is necessary that logistics and storage cost should be minimized in these cases so company should either extract the reusable component of the product as soon as possible or may be if they have option sell or for e.g. auctions, they should proceed.  

If we see it closely the reverse logistics business has become a million-dollar business for some companies. The Liquidation.com which is Amazon’s major reseller, their business model is to buy the returned products from amazon and the companies, and resell them of 5 to 15 percent of their market value.  

The computer hardware products were seen as the major reselling products for this company. They paid the $33.7 million to amazon in year 2018 for the returned products reselling. As the e-commerce is growing the reverse logistics is also becoming the most important part of the supply chain and can earn more than what generally people think.