(Solved Homework): Describe what reverse logistics is? What is its primary goal? What is the key difference…
Expert Answer
Reverse logistics are the set of activities by which a company recalls products from the customers in cases of defects or damages, problems in shape and size ( for clothes and shoes), a wrong despatch of product and the like.
Reverse Logistics is gaining more prominence on back of competition as well as improving customer services. Reverse Logisitcs was always there , was always challenging. However, with the growth of online channels to purchase products, the velocity and complexity has increased multifold.
The primary goal of a revese logistics is to ensure that product is taken out from customer end and is deposited for rework. Depending upon the product, it may either be exchanged, replaced, worked upon or simply the customer can be refunded once the product has been taken out from the customer.
Key difference between forward and reverse is: Forward can be planned. I have a fair idea of what I am going to despatch tomorrow and to whom, while reverse logistics does not have that type of visibility.. Further, productivity of resources for revserse will be lesser. It may be a partially filled vehicle or an courier boy lifting only ten per cent of the load than he can do.
Core value generating activity is “customer satisfaction” by giving the customer an assurity that the activity is being carried out as per designated timelines.
