A Note on Reverse Logistics

1584 Words6 Pages
Reverse logistics involves the reuse of products and materials. Unlike its logistics counterpart, reverse logistics involves relates to the use of materials from the point of consumption to the point of origin. Reverse logistics is particularly useful within the retail industry as consumers often return merchandise that doesn't meet customer specifications. In many of these instances, the company must have procedures in place to process returns in both a timely and orderly fashion. Reverse logistics can be expanded to all activity associated with a product or service after the point of sale. The goal of reverse logistics is to ultimately optimize or make more efficient aftermarket activity, thus saving the company money and resources. It is through reverse logistics that returns can deliver both consumer and corporate value. Reverse logistics have profound implications on the retail industry. On average 5%-6% of all retail purchases are returned. These return, coupled with inefficient reverse logistics operations cost the industry roughly $40 Billion. When combined with the increase pressure and scrutiny on ecommerce transactions, and reverse logistics has large cost saving implications for retail organizations. The current macroeconomic environment is one of uncertainty. The pending fiscal cliff in America is causing cautious behavior on the part of both consumers and businesses. Looming debt, threatens the fabric of American capitalism. Austerity measures in Europe are
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