REVERSE LOGISTICS

WHAT IS REVERSE
LOGISTICS

”The process of planning, implementing and

controlling the efficient, cost-effective flow of
raw material, in-process inventory, finished
goods and related information from the point
of consumption to the point of origin for the
purpose of recapturing or creating value or for
proper disposal”.
FORWARD VRS REVERSE
LOGISTICS
 FORWARD VRS REVERSE
LOGISTICS
Forward Reverse

One to many transportation

Many to one transportation
Forecasting is straightforward
Forecasting more difficult Product
Product packaging uniform
often damaged
Product quality uniform
Product quality not uniform
Destination/routing clear
Destination/routing unclear
Disposition options very clear
Disposition not clear
Pricing is relatively uniform
Pricing depending on many factors
Standardised channel
Exception driven
 FORWARD VRS REVERSE
LOGISTICS
Forward
Importance of speed is often
recognised
Inventory mgt consistent
PLC manageable
Negotiation between parties
straightforward
Marketing methods well known
Real-time info readily available
to track products
Reverse
Speed often not considered a
priority(pharmaceuticals?)
Inventory mgt. inconsistent
PLC is more complex
Complicated by additional
considerations
Marketing complicated by
several factors
Visibility of process less
transparent