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Reverse Logistics – Why?

Reverse Logistics is gaining popularity and the strategy is smoothly moving towards a path that it will become an important part of the supply chain management strategy. A few over years ago this strategy was known to only a few professionals but now it is an important part of business management strategy of any company who is looking forward to being successful. There are multiple forms of businesses such as

1. B2C

2. B2B

3. C2C

4. Enterprise

It would not be wrong to say that Reverse Logistics is the best way to maximize the benefits that come with the recycling the products and services. You can also call it is trash to cash theory.

How Reverse Logistics works

Reverse Logistics is a unique strategy that is utilized in case of returned, unused, scraps and broken goods which are used again in the supply chain after enhancing their value and removing the flaws they had before. The people who hear of this process for the first time think that it will not show positive results. However, it has been noticed that Reverse Logistics is very beneficial for

  • Suppliers
  • Manufacturers
  • Distributors

Reverse Logistics – The Great Facilitator

You might have been wondering that why Reverse Logistics is commonly used and how it facilitates the organizations. Here are some of the important benefits that you should consider

  • If you consider the increasing rates of oil, fuel and other commodities of life you will see that how beneficial Reverse Logistics is for your business
  • You can use the scraps to not only reduce the production cost substantially, but also to generate additional revenue, & possibly a new product line.
  • Reverse Logistics can help in the supply chain management by providing backup fulfilment, in case the company is going out of raw material and new material will be delivered after the deadline for project submission.
  • It is beneficial for the environment because less waste material will be produced because most of it will be used for the reproduction, of new products, or more of the existing ones. It will help the company to lessens the harmful impact of chemicals on the atmosphere.

It has been noticed that most of the companies are interested in using the strategy of Reverse Logistics considering the benefits and increase in revenue it brings. It is clear that most of the scrap and unused products will provide the raw material that can be used for the process. Apart from that, it might produce enough products that the company will not have to invest in another installment of raw material that will help them to save a huge amount of money they might have to spend on the material, shipping, and transportation of the material.

It is important to assure that the Reverse Logistics is implemented properly. The reason is that when you are recycling the old products you have to assure that you do the job with perfection, as essentially it may not be in the perfect shape of the raw material required, but good enough. Eg, it might require addition of certain ingredients/components that might have been lost during main production, for which a replenishment process will be required to retain product quality.

When it comes to Reverse Logistics, it is important that the companies wisely maintain their services and pay attention to the quality they are generating. They have to assure to maintain the quality of the product will perfection to assure that they can easily meet the demands of the customers.

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