Reverse logistics

Reverse logistics refers to all operations to the using again products and materials (Kokkinaki et al., 2001). The Council of Logistics Management defined logistics as 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” (Hawks, 2006). Reverse logistics processes cover the aspects described in this definition, but operating in reverse.

Therefore, instead of looking at the process of how a product is transmitted from the distributor to the customer, it looks at how the merchandise moves from the customer to the distributor (Bichler et al., 2002). Therefore, reverse logistics also stands for all operations related to the processing of returned products. Therefore, reverse logistics can be defined as the process of “moving goods from their typical final destination for the purpose of capturing value, or proper disposal” (Hawks, 2006). Reverse logistics involves the returns and disposal of damaged products, seasonal merchandise, hazardous materials, assets recovered, products to be recycled, and other products and elements (Harrington, 2006). The notion of reserve logistics has become the focus of extensive debate by socio-economic commentators, as this process plays a very significant role in the supply chain.

Reverse logistics can suppose a large part of the total operational cost of the manufacturing process (ibid). Therefore, the reverse logistics cannot be ignored by managers and leaders, as an adequate and cost effective reserve logistics operations is essential for business enterprises, enabling to significantly reduce manufacturing. This paper will provide an examination of how reverse logistics affect the supply chain and purchasing processes.

[...] Environmental issues play an important role in reverse logistics. The environmental significance of establishing effective reverse logistic system has been regarded as crucial for many commentators, as an adequate system of returns and a sensible disposal of materials can reduce waste and enable companies to reuse materials appropriately. Reverse logistics play a very significant in the supply chain of all manufacturing business enterprises. Nevertheless, this impact varies in a very considerable way depending on the specific type of manufacturing and distribution of the company in question. [...]

[...] Reverse Logistics Magazine. http://www.rlmagazine.com/edition01p14.php Hawks, K. (2006) VP Supply Chain Practice, Navesink. Reverse Logistics Magazine http://www.rlmagazine.com/edition01p12.php Kokkinaki, A. I. et al (2001) Integrating a Web−based System with Business Processes in Closed Loop Supply Chains. Econometric Institute Report Series, Erasmus University Rotterdam, pp. 1−30. Mollenkopf D. et al (2007) "The returns management process in supply chain strategy. International Journal Physical Distribution Logistics Management. Volume. 37, number 7, pp. 568-592. Malone, R. (2005) "Reverse side of logistics: The business of returns". Forbes. [...]