Logistics & Materials Handling Blog

Advantages of Reverse logistics: 5 Reasons it should be Implemented - Part 3

by Paul Hinz
Filed under: Logistics

This is Part 3 of our series on Reverse Logistics. Here we will take a look at the advantages of Reverse Logistics. There are many advantages of Reverse Logistics such as financial gains along with social and environmental benefits.

Here are 5 reasons organisations should implement their own Reverse Logistics Strategies:

  1. Allows a trader to receive products back from the consumer or send unsold merchandise back to the manufacturer to be taken apart, sorted, reassembled or recycled; minimising overall costs for an organisation.
  2. Reverse logistics can be valuable in increasing product lifecycles, supply chain complexity, maintainable practices and consumer preferences; which have to be improved on to maintain productivity and growth.
  3. Gains can include; increasing speed of production, reducing costs (transportation, administrative, and aftermarket maintenance, repair and replacement), retaining customers by improving service goals and meeting sustainability goals.
  4. More value can be extracted from used/returned goods instead of wasting manpower, time and costs of raw materials involved in the original supply chain.
  5. Improved customer satisfaction and loyalty by paying more attention to faulty goods, and repairs of merchandise. Reverse logistics can include gaining feedback to make improvements and to improve the understanding of real * reasons for product returns

From looking at the advantages and importance of reverse logistics; we can now see reverse logistics can play an important part in the growth of an organisation; having many financial, environmental and societal gains. It is important not to overlook reverse logistics as organisations can markedly improve their customer service and response times along with environmental sustainability and company social responsibility.