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Reverse Logistics Principles

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In simple words, reverse logistics is all about moving products from their end point of use in an attempt to try and give them another usable form. According to the Reverse logistics association (2009), reverse logistics encompasses all those activities that appertain to products or services after their sale point, the main aim being to maximize on the product in question so as to address other concerns that relate to environmental and money aspects. On the basis of Smith (2009), reverse logistics is simply the handling of returns of a product. For Smith, logistics reversal happens when customers return the products they had purchased for a variety of reasons. Smith has identified five components of reverse logistics: restocking, repackaging, repairing or reconditioning, returning to the vendor, and retaining of scrap.On restocking, the un-opened items are taken straight back to the existing inventory. If the goods had been re-opened, they are repackaged and put back to the selling shelves (Moschis 2005). If the products are found to be faulty, they are reconditioned to meet the minimum level as per requirements and either given back to the customer or put back to the inventory if the customer is unwilling to re-take it. If the faults on a product cannot be corrected, then it is imperative that they be taken back to the original vendor. In the event that a product’s recovery value is zero, then that is taken as scrap.According to Gardner (2005), there are four reasons that necessitate a reverse logistics strategy. They include: product recalls, adjustment of stocks, functional returns, and business by business commercial returns. For one to be able to run a successful business as a result, it is advisable to develop a reverse logistics system that adequately addresses customer and business concerns.Reverse logistics are difficult to handle especially in terms of costs and inconveniences that negatively impact on sales at least at its onset.