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Reverse Logistics

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About Course

Importance of Reverse Logistics in Supply Chain

In e-commerce, reverse logistics is the process of coordinating returns. All operations related to how the returned product is shipped by the customer, where it’s shipped to, and how it’s processed when it gets there involves reverse logistics. It is the set of activities that are conducted after the sale of a product to recapture value and end the product’s lifecycle.

It is a higher level perspective that includes the overall process of planning, implementing and controlling the inbound flow and storage of secondary goods and their related information.

The Process and Challenges of Reverse Logistics:

In a warehouse setting, it involves the process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

In reverse logistics, goods move from the end consumer back to the seller or manufacturer. The most common example is when a consumer returns a purchased item for a refund. The returned products may be resold or disposed of permanently.

The processes that a product can undergo include:

  • Remanufacturing – rebuilding the product with reused, repaired or new parts
  • Refurbishment – resale of a returned product that has been repaired or verified to be in good condition
  • Servicing – a broad category that includes customer service, field service and product returns, such as the issuance of return merchandise authorizations
  • Returns management
  • Recycling and waste management
  • Warranty management
  • Warehouse management

Challenges of Reverse Logistics:

It comes with a lot of challenges. One of the most common is tracking the profitability of the reverse logistics process. Depending on the items, it’s not always profitable to ship products back to a distribution centre because the value of a product may be less than the cost of shipping.

Another common challenge is having the necessary infrastructure to track an item’s warranty status. It’s also important to ensure any repair process is cost-effective.

Why is Reverse Logistics Important?

The traditional product cycle ends when the end customer makes their purchase. However, now, the product’s life cycle has been expanded to include dissolution of the product after the end-user has extracted its maximum use or value. Logistics, either forward or reverse, can have a significant impact on the asset recovery of the business.

The most important reason to adopt strategies is because of its profitability. All of these other aspects of asset recovery lead to the same place, decreased expenses and increased revenues. It will improve every step of the supply chain which will have a rippling effect on the rest of the business. The trend of reusing and recycling is gaining momentum. This will encourage new forms of competition within the industry.

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What Will You Learn?

  • Understand basic concepts of Sustainability and why reverse logistics becomes essential in current market environments

Course Content

Session 1 Introduction

  • What is reverse logistcis

Session 2 Types of returned products

Session 3 Reverse cycle models

Session 4 direct vs reverse

Session 5 Design inputs

Session 6 Brand loyalty and warranty

Session 7 Disposal

Session 8 Data capture

Session 9 Outsource

Student Ratings & Reviews

Total 5 Ratings
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10 months ago
good course which provided me with basic insights about supply chain sourcing
10 months ago
It is very useful in the supply chain, especially in supplier selection and segmentation, and the relationship we should keep with each one for a win-win.
10 months ago
An interesting learning experience. It is made by looking for various Challenges of Reverse Logistics.
10 months ago
This information is very valuable! I appreciate the information and the instructor's knowledge.
10 months ago
The course was really helpful and full of information. Learned a lot of technical terms and definitions.
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