Logistics is an old and popular concept that needs no big introduction.
Supply Chain Activities are evolving, and the focus is not restricted to the management of raw materials and finished goods from point of origin to the end customers, which is known as logistics.
There is an extension to Supply Chain Process called Reverse Logistics.
Just as the name denotes, Reverse Logistics is basically logistics the other way round. It involves the process and flow of finished goods inventory, packaging materials and parts of finished product back from the end customer to the product company. This usually happens as a warranty return, sales return or unsold inventory.
There is increasing global awareness about hazardous waste generation and disposal, and its effect on the environment.
Reverse Logistics aims to re-capture value from these products as much as possible by way of repair, recycling, refurbishing, etc. Green Logistics initiatives around the world have outlined processes for the suppliers and manufacturers to adapt systems that will enable them to identify and categorize different kinds of waste, such as recyclable waste, green waste, reusable waste and so on.
Companies are beginning to take responsibility and put measures in place to ensure recycling, in an attempt to minimize the impacts on the environment. Industries are developing reverse logistics practices. Computer Hardware industries, for example, are integrating reverse logistics into the system as a marketing strategy that projects the industry as responsible in the area of waste management.
Reverse logistics prove beneficial because tons of raw materials are saved through re-engineering products with reused or recycled materials. This also helps with employment creation for numerous people designated to dismantle the parts of the reusable materials. The packaging and products returned using reverse logistics have also been found to yield scrap and salvage value.
The reverse logistics for the computer hardware industry example is designed to collect waste, such as used cartridges, locally from “e-bins” displayed with retailer outlets and ship them out to regional centers that are located at gateway ports in the country. Such waste is then forwarded to recycling plants which attempt to salvage metals and plastic. The salvaged materials are further used as raw material to manufacture some other products.
Reverse logistics is increasingly being considered to be a corporate responsibility adopted by responsible companies and industries. It is becoming part of their corporate governance and considered good practice.
This doesn’t only project these industries as responsible but helps to add value to marketing strategy.
Be sure to contact AMG Logistics for all your logistics needs.