An important aspect of this blog, Reverse Logistics Today, is that we plan on sharing insiders information with industry professionals that read this blog. Some posts will be for novices and some will be for experts. This blog post is for the latter. In this vein, we'd like to share with you some of the insight we've gleaned from working with companies and learning about their misconceptions about Reverse Logistics.
Many companies we work with incorrectly envision reverse logistics to be simply the opposite of forward logistics. Therefore, we see an immediate need for potential RLMS end-users to understand the complex factors that make reverse logistic problems different from those faced by forward logistics. These factors include, but are not limited to:
a) The complex natures of product lifecycle- today, products rarely “die,” but have after-lives in a post-sales market. This means that manufacturers and retailers need to know how to deal with their products that end up on their doorstep.
b) The multitude of disposition options that exist-Dealing with a returned product is not as simple as throwing it in the trash. Many options exist, such as recycle, refurbish, and reuse.
c) Non-uniformity of product quality- There are many different tiers of returned product quality, from like-new to damaged, and these grades dictate what RL process is best for the product.
d) Complicated forecasting- It is extremely hard to forecast or predict RL trends and volume. Unlike forward logistics, RL flow is not dictated or controlled by the manufacturers or retailers initiatives.
These four points need to be explained to potential companies looking to venture into the profitable, and usually necessary, realm of Reverse Logistics.