Reverse logistics, also known as inverse, focuses on the return of materials already used in the production process. That is, it aims at the proper reuse or disposal of materials and raw materials and the preservation of the environment.
When a company is able to implement the reverse system in its logistics area, it becomes possible to balance profit with sustainability. It is worth remembering that this system is fundamental so that large companies do not become enemies of society, but rather valuable partners.
To learn more about reverse logistics meaning and the benefits it offers to industry and society, keep up with polyexcel’s blog.
What is reverse logistics?
Reverse logistics management is nothing more than an instrument of economic and social development. Its main objective is to provide a set of actions and procedures that enable the collection and restitution of waste from the industrial sector.
In addition, these actions are responsible for the reuse of these materials or for the final destination for an appropriate environment. Therefore, it is very important that companies producing items such as batteries, electronics and their components, for example, take proper care.
But what is the difference between common logistics and the reverse logistics concept? The first is a set of actions and strategies to produce and deliver products to stores and consumers. Meanwhile, the second has the main objective to collect these items in an agile and inexpensive way.
How does reverse logistics work?
For the operation to be carried out with excellence, reverse logistics has three basic steps. These include the following situations:
- The consumer returns the product or packaging to the trader;
- The merchant forwards the item to the manufacturer,
- The manufacturer allocates the materials for proper reuse, recycling or disposal.
In addition, these steps apply in two different types of reverse logistics and sustainability. After all, this process can be carried out both after-sales and after-consumption.
After-sales reverse logistics
At this stage, the product is able to return to the distribution chain before it has been used by the buyer or in cases of little use. In practice, this can happen by identifying a defect or even by some error in the processing of the order.
As a way to respond to this demand, the company needs to plan the receipt and forwarding of items, establishing strategies and control of physical flow. Most of the time, when undergoing improvements, the product can be re-marketed.
Post-consumer reverse logistics
Unlike the first example of reverse logistics, here the product has already been purchased, used and discarded by the consumer, making it unsuitable for the primary buyer. This may occur due to the end of its validity or the end of its useful life.
Despite having a different final strategy, as well as the first reverse logistics process, the company must prepare to receive the items and destinate them to the correct locations. This way, you can route them to the specific production cycle, recycling, or dismantling for these materials.
What are the main advantages of reverse logistics?
After discovering how reverse logistics works, the question that remains is what advantage do companies that use reverse logistics gain by adopting these measures? Although the main answer is to maintain the balance between business activity and nature, this is not the only positive point.
Before starting this matter, it is important to understand that cost reduction of a company cannot be done in a disorderly manner. After all, these expenses are directly linked to the final activities of the business and reducing them without proper study can lead to a decrease in quality.
After establishing these criteria, the financial aspect can be divided into two stages: increased profitability and resource savings. This is because by establishing areas of item restructuring, the company saves on production and drives new sales.
Improvement in the production process
Creating guidelines for waste treatment, modifying the distribution flow and adapting production also makes all the difference in the process. To maintain the proper functioning of the chain it is necessary to rely on strict controls and seek efficiency, enhancing long-term results.
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