What Is Reverse Logistics?
The Council of Logistics Management defines it as follows:
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 origin to the point of consumption for the purpose of conforming to customer requirements.
Reverse logistics is essentially all of the activities that are mentioned in the definition above, except operating in reverse. Therefore, reverse logistics, as defined by the Reverse Logistics Executive Council, is:
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 of proper disposal.
More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Reverse logistics also includes processing returned merchandise due to failure, damage, seasonal inventory, restock, salvage, recalls, and excess inventory. It also includes recycling programs, obsolete equipment disposition, and asset recovery.
Product Life Cycle
- Courtesy of Reverse Logistics Association
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