reverse logistic

Reverse logistics is one of the most important parts of the logistics industry, which in the last two decades has become an integral part of businesses due to the expansion and growth of online stores. According to statistics, the value of this logistics sector will reach $ 240 billion in 2020 and $ 788 billion by 2028, according to statistics.

Reverse logistics is the process of planning, executing and controlling the return of goods from the customer to the place of origin of the product. These days, companies often ignore it because of the problems with this type of logistics, but making the best use of reverse logistics can be a big help to your business. If you also decide to improve your business using this type of logistics or you want to know more about this process, join us at the end of this article to learn concepts such as the definition of reverse logistics, the history of reverse logistics and examples of Check reverse logistics.

 

Definition

logistics is divided into four categories based on where the transfers are made, one of which is reverse logistics. During the supply chain and logistics process of any business, the goods may encounter problems after reaching the customer and the consumer. These problems can be related to the defective product or defects in it. At this stage, the product needs to be returned from the customer to the factory (place of production or distribution), which is the process of return in the logistics industry, called reverse logistics.

“In simpler language, reverse logistics can be introduced as the stage of return of goods from the consumer to the producer.”

Of course, this type of logistics is not just for defective or damaged goods, and many large companies use reverse logistics to recycle recycled goods, renovate old products, and return goods that are too much on the market.

Reverse logistics history

The first use of reverse logistics dates back to the American Civil War. Of course, this type of logistics has been used in various ways before, but because these processes are not recorded systematically, most US Civil War logistics activists cite the first use of reverse logistics. Reverse logistics were also used in World War II. At that time, one of the main problems was the lack of parts for car repairs, which led countries to rebuild parts and use reverse logistics for this process. The term inverse logistics was first introduced by James Stoke in an article of the same title.

 

Advantages and disadvantages of reverse logistics

The main goal of any business is to increase customer satisfaction and all companies try to increase the number of their satisfied customers by offering a quality product. Reverse logistics is a part of the supply chain process that is less used by businesses due to its problems, but perhaps the most important advantage that can be mentioned for using this type of logistics is customer satisfaction.

By using this process and getting the defective product from the customer, you will induce a good feeling in the customer and as a result, the number of your satisfied customers will increase day by day. One of the problems that prevent many companies from using reverse logistics is the costly process. This problem will be solved by proper planning and optimization of this process.

According to Optoro website statistics in 2018, 97% of customers who buy from retailers and after returning the product (for whatever reason) are treated well by the store, buy from that store again.

Examples of corporate reverse logistics

As we said, this type of logistics is one of the most costly parts of logistics, and many companies eliminate this process from their supply chain process. In contrast, large companies have been able to reduce much of this cost by using creative ways to plan and optimize reverse logistics. For example, Apple uses old mobile phone parts to make new products by taking old mobile phones from users when buying new mobile phones. H&M, one of the largest apparel companies, also takes its customers’ old clothes (whether from H&M or other brands) and uses them to create a recycled clothing line.

Conclusion

So far, we have become familiar with the definition of reverse logistics and realized that the process of returning a product to the manufacturer is called reverse logistics. Then we went to the American Civil War and looked at the first signs of using this type of logistics. After the history of reverse logistics, we mentioned the advantages and disadvantages of this part of logistics and by giving examples of the world’s top companies in the reverse logistics sector, we found that with careful planning, many of these problems can be overcome and the reverse logistics process optimized.

As mentioned, the high cost of this type of logistics is one of the major barriers for companies to use this process. There are several logistics management software on the market that help you manage logistics processes in addition to reducing costs.

Angariium is a simple and smart last-mile delivery management software that helps you manage your fleet and delivery process without any doubt. By using Angariium you have easy access to every feature you need for your managers. intelligent features in Angarrium help you experience agile management. You can easily see our demo and test Angariium software by clicking on the below button.

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