Normally, when we speak of shipping or transportation and logistics, we are referring to the movement of products from the manufacturer to the customer. Reverse logistics refers to the movement of products anywhere else, but often from the end customer back to the manufacturer.
There are several benefits of reverse logistics, and we are going to look at them briefly in our blog article today.
Value
Capturing value that would otherwise be lost is one benefit. For example, if a customer buys a product and finds that the product is defective, reverse logistics, or a mechanism for returning the product to the manufacturer, allows the customer to get the product fixed or get another one. The customer could also sell the product back to the manufacturer after use.
Similarly, with reverse logistics, the manufacturer gets an opportunity to fix the product or refurbish it and resell it.
Customer Relations
If there is no mechanism for reverse logistics, then a defective product would go in a landfill, the customer would be unhappy, and the business will have lost a customer. Also, reverse logistics would enable a customer to send a used product for recycling, which the customer would prefer over sending a used product to the landfill.
Environmental Effect
Reverse logistics allows products to be recycled which is good for the environment. The recycling step also allows for value to be captured from a used product that would otherwise be lost.
Reverse logistics needs to be well designed and efficient in order to be effective. However, it is a powerful tool with many benefits that all businesses should take advantage of.
For over 30 years, 18 Wheels Logistics has strived to be the most customer-centric trucking, warehousing, and logistics company around. Based in Vancouver, British Columbia, Canada, 18 Wheels relies on experience and integrity to make customers happy and remain on the cutting edge of shipping and logistics management.
If you have any questions about this article or you would like to talk to us about your shipping needs, please call us at (604) 439-8938.
