The Importance of Reverse Logistics in Your Supply Chain

by Michael Kotendzhi | Logistics

Reverse logistics can be defined as the process of moving goods beyond their typical destination. You might not think that this is common, but often, the supply chain doesn’t end with the customer. You must understand the importance of reverse logistics in your supply chain for this exact reason. To understand this concept better, continue reading below.

Keeps Customers Happy

This is an extremely common reason why reverse logistics is in place. Keeping customers happy is key in good business. This plays a role because sometimes customers may need to return products for a multitude of reasons. Some of those reasons may be that they simply bought the wrong product, the product was damaged upon arrival, the product didn’t match its description, or the customer ultimately decided that they didn’t want the product.

Whatever the case may be, being able to return the product is important for keeping the customer happy and satisfied. That is where reverse logistics in the supply chain is important. By allowing customers to return the product through the reverse logistics in your supply chain, you are assuring the customer that you will deal with whatever issue or reason they had for returning the item.

Environmental Benefits

Unfortunately, some items may end up in a landfill after they go through reverse logistics. Nobody wants that to be the case. Having reverse logistics that allow for repairs, reshaping, and recycling reduces the likelihood that this will be the case. These elements in the supply chain ensure that products that go through a company’s reverse logistics do not end up in the landfill, ultimately helping the environment.

All Problems Will Be Identified

You might not think that this would fall into the importance of reverse logistics in your supply chain, but you couldn’t be more wrong. With online shopping as big as it is and returns continuing to grow, there is also a growing pressure on the supply chains to manage and successfully implement product returns for companies everywhere. As this is the case for many businesses and companies, metrics should be used to monitor the supply chain. Monitoring the supply chain will allow your company to identify problem areas, which will ultimately enable you to create solutions that will lead to the overall betterment of your business.

Don’t continue searching for logistics companies in Vancouver anymore—you have found us! Here at 18Wheels, we are experts at logistics and can help you navigate your business and company. Reach out today or visit our website for more information.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.