Reverse logistics
Reverse logistics
stands for all operations related to the reuse of products and
materials. It 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. More precisely, reverse logistics is the process of
moving goods
from their typical final destination for the purpose of capturing
value, or proper disposal. Remanufacturing and refurbishing activities
also may be included in the definition of reverse logistics."
The reverse logistics process includes the management and the sale of
surplus as well as returned equipment and machines from the hardware
leasing business. Normally, logistics
deal with events that bring the product towards the customer. In the
case of reverse logistics, the resource goes at least one step back in
the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer.
When a manufacturer's product normally moves through the supply chain
network, it is to reach the distributor or customer. Any process or
management after the sale of the product involves reverse logistics. If
the product is defective, the customer would return the product. The
manufacturing firm would then have to organise shipping of the defective
product, testing the product, dismantling, repairing, recycling or
disposing the product. The product would travel in reverse through the
supply chain network in order to retain any use from the defective
product. The logistics for such matters is reverse logistics.
See this diagram to understand
To Join Ajit Mishra's Online Classroom CLICK HERE .
Comments
Post a Comment