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Reverse Logistics

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Abstract

Reverse logistics is the process of managing the operations concerned with any returned goods to the manufacturer. On average, near 5 % of the goods sold are returned to the original manufacturer for a variety of reasons as: worn out goods, damaged goods, unsold goods, recall goods, and so forth. The manufacturer is obliged to receive and process the return goods seeking any revenue that can be gained, or arranging for proper disposal. The role of processing return goods has expanded ever more as the environmental mandate of industrial growing green has gained strength. In the typical forward logistic way, the goods final destination is with the customer. As the goods become old, they may be replaced and returned to the manufacturer to begin the reverse logistics cycle. The returned goods are mostly one-model-at-a-time occurring in a disjointed manner. The return process is costly, perhaps 10 % of the total cost of the original sales price, requiring the manufacturer to seek as much value from the item as possible. In the typical situation, the returned goods are cleaned, tested for worthiness, and if accepted, are repaired and refurbished for resale. When not accepted, they are disposed in the proper manner.

Keywords

  • Core Component
  • Reverse Logistics
  • Engine Model
  • Original Equipment Manufacturer
  • Core Unit

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  • DOI: 10.1007/978-3-319-26862-0_14
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Thomopoulos, N.T. (2016). Reverse Logistics. In: Elements of Manufacturing, Distribution and Logistics. Springer, Cham. https://doi.org/10.1007/978-3-319-26862-0_14

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