Answered Essay: Describe what reverse logistics is? What is its primary goal? What is the key difference

Describe what reverse logistics is? What is its primary goal? What is the key difference between forward and reverse logistics? Find a 3rd party logistics company specializing in reverse logistics. What are their core value generating activities?

Expert Answer

In simple word reverse logistic is flow of goods from the point of consumption to the manufacturer or point of origin of the product for proper disposal or for recapturing value. All the process like returning the product, repairing the product, maintenance, recycling etc comes under reverse logistic.

Reverse logistic services are provided due to damage, salvage, recalls, seasonal inventory, excess inventory, recycling programmers, restock, damage etc

Primary Goal of Reverse Logistic-

  1. Now a day’s competition is very high in the business. For complete customer satisfaction companies provides reverse logistic to gain customer trust.
  2. The another goal is to extend the life cycle support of the product
  3. Now a days there are economical and, ecological, environmental challenge is before world so reverse logistic helps in it by refurbishing, recycling of the used product
  4. It is used as competitive tools. Companies are showing differentiation in services from other companies and they are providing speed as well. These activities generate values. Most often companies do not charge for it from the companies.

Difference between Forward and Reverse Logistic– As I have stated above reverse logistic reverse logistic is flow of goods from the point of consumption to the manufacturer or point of origin of the product. Forward logistic means flow of goods from the manufacturers to end users. For an example you have bought a product from Amazon. The Amazon will ask the vendor or manufacturer to ship the product to you. And that vendor. Manufacturer will ship that product to you. This is forward logistic. And you did not like the product because product is damage and you again call Amazon to collect the product for repairing or refund. Now the courier company will again collect the product from you and will ship to the vendor/manufacturer. This is reverse logistic.

FedEx is a big company who is amongst those which manage reverse logistic. The core of the company is to provide the ethical and professional standard in logistic. They met the customer’s expectation with appropriate manner.

  • Alignment and accountability
  • Balance: Community and environment
  • Customer Service Excellence
  • Integrity
  • Open Communication
  • Passion for results: Respect
  • Teamwork
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