concept map

reasons for the reverse logistics (ReLo) process

Processing returned merchandise including damaged, seasonal, restock, salvage, recall, or excess inventory.

Green initiatives such as recycling packaging materials/containers.

Reconditioning, refurbishing, remanufacturing of returned product.

Disposition of obsolete inventory.

Hazardous materials recovery and electronic waste disposal.

https://www.warehouseanywhere.com/resources/45-things-about-reverse-logistics/

Returns Vary by Industry

In some industries, returns are the major reason for a reverse logistics system as percentages can range from as low as 2-3% (chemicals) to over 50% (magazine publishing).

Need for ReLo

Recycling: It may be possible to recycle some of the product and its components. This is a more sustainable alternative than throwing items in the garbage. Paper, metal, and glass can often be recycled.

Reuse: Many of the products we buy can be reused. The process also provides monetary incentives for the end user. Reuse is also a critical component of the circular economy.

Repair: Most products have warranties and guarantees. Moreover, customers don't want to spend money buying new a product if the old one breaks down and can be mended. Thus, returning items to the manufacturer or distributor for repair is a common practice.

Refurbishment: The market for refurbished products is growing rapidly. The brand image for refurbished goods has changed. Thus, many customers are comfortable in trusting refurbished products.

Replacement: Now that e-commerce is so popular, replacing faulty products that don't match expectations has become much easier. For this reason, many brands promise free replacements and free returns to improve customer satisfaction.

Disposal: Some products may harm the environment depending on how people dispose of them. For example, electronic waste is a massive environmental concern. Sending these products back to their manufacturers can ensure that the manufacturer properly disposes of them.

ReLo Framework