What is forward/reverse logistics?

What is forward/reverse logistics?

Forward logistics is the movement of goods from seller to buyer, including eCommerce fulfillment. Reverse logistics is eCommerce returns.

How do you succeed in reverse logistics?

How to Succeed in Reverse Logistics

1. Outsource the Process, Not Data.
2. Getting Started.
3. Know the Three Vs — visibility, velocity and value.
4. Realize revenue potential.
5. Design to deploy.
6. Prevent the gray market and ensure brand protection.
7. Remember customer service.
8. Control product recalls.

What are the 5 R’s of reverse logistics?

The five Rs of reverse logistics are returns, reselling, repairs, repackaging and recycling.

What are two benefits associated with reverse logistics?

By streamlining the way products move back through your supply chain, you can see benefits such as cost savings, happier customers and improved sustainability. There are several ways to cut costs with reverse logistics, from reducing transportation spend to reselling items that would have been a complete loss.

What is forward and reverse supply chain?

Forward supply chain imply a series of activities required to produce new products from virgin materials and distribute them to consumers while reverse supply chains require collecting used products from consumers and reprocessing them to either recover their leftover market values or dispose of them.

What is the difference between reverse logistics and reverse supply chain?

Reverse logistics is the opposite of the standard supply chain. The goods move from the end user back to the seller or manufacturer. It can include returns from e-commerce and retail, as well as components for refurbishing and remanufacturing. The products may be resold or disposed of permanently.

How can we avoid reverse logistics?

1. 5 Ways to Avoid a Reverse Logistics Nightmare.
2. Have a plan for cross-channel returns.
3. Use Return Material Authorizations (RMAs)
4. Provide the criteria and training needed to efficiently grade returned merchandise.
5. Keep track of all returned items.
6. Invest in Refurbishment.

What is the importance of reverse logistics?

For products at the end of their life cycles, reverse logistics extends their use through repairing, reshaping or recycling. It can act as a sort of asset recovery for manufacturers so they can extract as much value from the product as possible, providing a second return of investment.

How can reverse logistics create value?

A reverse logistics network creates value by giving you a clear path to understanding your network and improving it before things crash. The eventual handoff of equipment for repairs or replacement to a third party will give you a way to generate some final income or savings for your company.

Why is reverse logistics more difficult than forward logistics?

Simply, reverse logistics defies forward-thinking logic. “Moving backward through the supply chain is more difficult and complex because there isn’t a priority and products are moving against the normal flow,” says Dr. Dale Rogers, professor of supply chain management, University of Nevada.