REVERSE LOGISTICS

• Jun 8- 2023
• Trucking Company

The term reverse logistics refers to goods transported back through the same supply chain ecosystem from whence they came. By moving inventory back to the original seller or manufacturer, the ultimate goal is the resale, recycling, or permanent disposal of e-commerce/retail returns or components requiring refurbishing or remanufacturing. Product returns may be due to the fact they no longer meet customer needs, have been recalled due to safety issues or defects, need repairs or refurbishment, require repackaging for resale, or have reached the end of their service life.

To facilitate long-term growth and tackle the global challenges of climate change, biodiversity loss, waste, and pollution, we are seeing the rise of the circular economy – defined by the European Parliament as

“a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible.”

By retaining and recovering maximum value from extracted resources, the circular economy is a constantly spinning model of efficiency where waste is reduced or eliminated. A sound reverse logistics approach can fulfill the goal of a closed-loop supply chain, providing beneficial outcomes for your organization while helping protect and preserve our planet.

An effective reverse logistics strategy should include plans to recapture value by reselling inventory or relocating goods to an alternative site for recycling or permanent disposal. Reverse logistics can provide valuable insights as to issues causing the return of goods, minimize return-related costs, and earn customer loyalty. Reducing the number of products that reach our landfills can elevate your brand reputation for social and environmental responsibility.

Many businesses feel pressure to match the efficient return systems of the big e-commerce players, but implementing a successful reverse logistics strategy can seem overwhelming. A third-party logistics provider can help ease the pain by working in concert with your organization to develop a customizable plan and provide access to transportation and scheduling, all while managing the flow of goods in a cost-efficient manner.

Managing returns is a critical part of the circular economy and one of the most overlooked components of a company’s supply chain. Customer relationships do not always end at delivery, and demonstrating a solid reverse logistics process can create additional value and help build a loyal client base. No matter how challenging or complex, MGA International Logistics can help explore a returns management solution tailored exclusively for your supply chain logistics.