A review of the ‘logical’ or ‘common’ logistics is what is called the ‘Reverse logistics’. With that concept it is tried to get another step. Once a logistic process has been implemented in a company, then is when the efficiency, the reduction of costs and the effectiveness is researched, like that the concept was born.
As the Council of Logistics Management define:
‘Logistics is the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.’
However, by the same author,’ Reverse logistics is the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal’.
Then, which is the explicit difference between them? Particulary, reverse logistics works on the opposite way as the standard does, looking for what is aprreciate by the final customer, trying to get the core of the value removing every part of the logistical process unnecessary which do not increase the value of what is being serving.
This review and analysis of the standard logistics what becomes in Reverse logistics have serious reasons that support the need of the implementation.
First of all, alows a trader to receive products back from the consumer or send unsold merchandise back to the manufacturer to be taken apart, sorted, reassembled or recycled. Also, when the product changes the life-cycle could be a particulary keystone this analysis.
Gains can include: increasing speed of production, reducing costs (transportation, administrative, and any kind of repairs), or retaining customers (if it is satisfactory) moreover, more value can be extracted from returned goods instead of wasting power of man, time and costs of raw materials used in the original supply chain. And with all of this, to improve customer satisfaction and loyalty.
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