Reverse logistics: what it is and how it works

Have you ever wondered what happens to the products we return to stores? Or how companies manage waste? The answer is reverse logistics! In this article, you will learn everything you need to know about reverse logistics: from its definition to its benefits and impact on our society. Don't miss it!

What is reverse logistics?

Reverse logistics is an increasingly popular practice in today's business world, involving the management of products and materials after their use and consumption.

It's a process that aims to reduce environmental impact. This process is often overlooked, but it's crucial for the environment and climate change improvement. Additionally, it helps optimize resources and save costs. Reverse logistics involves managing products and materials at all stages of the product lifecycle, from manufacturing to final disposal. This includes transportation, storage, repair, refurbishment, reuse, and recycling.

The history of reverse logistics

Returns management emerged in the late 1980s as a result of increased environmental awareness and legal requirements regarding the environment. At that time, waste management was a problem for many companies, especially those producing products with electronic components. Reverse logistics allows these companies to minimize their environmental costs by planning recycling and reuse of their products from the outset.

How does reverse logistics work?

The return process is not a simple task; that is, reverse logistics to be done correctly needs to have great control behind it. But do you know how it works?

• Product Collection: The first stage involves collecting the products and materials that have already been used or consumed. These products can be returned by customers, collected at collection points, or picked up directly at customer facilities.
• Transportation: Once the products are collected, the transportation process begins towards the facilities of the company responsible for managing reverse logistics. At this stage, it's important to optimize the transportation route to reduce costs and environmental impact.
• Storage: Once the products have arrived at the facilities of the responsible company, temporary storage is carried out. It's important to have an inventory management system to optimize space and product management.
• Assessment: At this stage, an evaluation of the products is conducted to determine their condition and the available options for their further management. The products can be repaired, refurbished, reused, recycled, or disposed of.
• Subsequent Management: Depending on the condition of the products, the corresponding subsequent management is carried out. If the products are repairable, they undergo repair; if they are refurbishable, refurbishment is carried out; if they are reusable, reuse is performed; if they are recyclable, recycling is conducted; and if they are not useful, final disposal is carried out.

Advantages of quality reverse logistics

Quality reverse logistics can provide significant advantages at both business and environmental levels. At the business level, we can highlight that well-implemented reverse logistics can help you with:

• Cost reduction: Efficient reverse logistics management can reduce company costs by enabling the reuse of products and materials and avoiding the purchase of new resources.
• Improvement of corporate image: Implementing reverse logistics practices can enhance the company's corporate image by demonstrating its commitment to the environment and sustainability.
• Regulatory compliance: In many countries, there are environmental regulations that require the implementation of reverse logistics practices, which can prevent sanctions or fines for the company.
• Generation of new income: Proper management of reverse logistics can generate new income for the company by allowing the sale of refurbished or recycled products.

Benefits of reverse logistics for the environment

There are many environmental benefits associated with reverse logistics. Firstly, it allows for a significant reduction in CO2 emissions associated with transportation. Reverse logistics can also help reduce the volume of waste generated, as products and packaging are returned to manufacturers for reuse or recycling.

Another important benefit is that return logistics can improve overall energy efficiency, as it reduces the need to transport raw materials and finished products over long distances.

Conclusion

Reverse logistics is a key element in supply chain management and in the implementation of sustainable and environmentally friendly practices. Reverse logistics allows products and materials to return to the production cycle, reducing waste and optimizing resource use.

Additionally, reverse logistics can provide numerous advantages at the business level by enabling cost reduction, improving corporate image, generating new income, and complying with environmental regulations. In an increasingly conscious world of the importance of sustainability and environmental protection, the implementation of reverse logistics practices becomes a necessity for companies that want to remain competitive and meet the expectations of their customers and society in general.

From Olabox, we can help you manage a good returns logistics for your business or e-commerce. Don't hesitate to contact us to request information.