Sertrans Blog - Process Management in Reverse Logistics
logistics processes for businesses, another process that is as important as
supply logistics, production logistics and distribution logistics is the
reverse logistics process. Considering that approximately 10 percent of the
products offered to the market by manufacturers or retailers return to the
manufacturer or seller, the importance of the reverse logistics concept is once
What is Reverse Logistics?
Reverse logistics is
the flow of any product or information from the point of purchase to the point
of origin for the recovery of its value or its proper disposal. Planning,
implementation and control activities in this flow, on the contrary, constitute
the processes of the reverse logistics concept. Reverse logistics, which is
considered as one of the processes in the supply chain today, is one of the
criteria that increase the competitiveness of the business in the sector,
flexible working features and most importantly, the customer's confidence in
The Importance of Reverse Logistics Concept in
A product subject to
logistics may fall within the scope of reverse logistics, i.e. the reverse
distribution network, for many reasons. Possible reasons for the return of
products include excess production, failure in the quality control process,
damaged or incorrect delivery, failure to adjust stock, expiration of the
product, returns for warranty or repair purposes. Sometimes returns due to
legal regulations can be caused by situations such as pallets, containers,
packaging, health reasons.
Since it will be
difficult to group where and at what stage the product takes place in the
return and supply chain, it is expressed in the following three basic
returns: It is the return of products emerging at any stage of production.
returns: The return that occurs when the final product reaches the end user to
It includes the returns of consumers who use the final product.
What To Do For Successful Reverse Logistics
Since product returns
will always be a part of logistics, the best management of the reverse logistics
process adds significant value to the financial results of the business.
Researches show the following as the reasons for the concerns of businesses
about reverse logistics:
Failure to adequately
recognize the potential benefits of product acquisition, the desire to hide
inventory errors, the emphasis on output logistics by businesses, the quality
level of the returned product, the inability to plan the appropriate handling,
labeling, transportation and vehicle routing requirements. Production,
logistics and other processes will of course have significant effects in the
take-back process of the product.
strategic arrangements and changes should be planned in advance. Deficiencies
in this regard should be identified and the business should gain some new
skills if necessary. For example, it is an important skill that the informatics
department of the logistics company is at a level to monitor and control all
processes and activities. On the other hand, logistics plans should be arranged
in the most appropriate way for both forward and reverse logistics processes.
control system, the planning of the product quantity, the ability to overcome
the uncertainties in timing and quality should also be one of the business
capabilities. In order for the reverse logistics to be successfully managed,
the enterprise must also have a complete command of the stock system. New parts
of products, returned ones and the control of these parts should be adapted to
the parts of the stock system. All employees should be given trainings on this
subject, and they should be informed about the processes.
As with every new
change process, businesses may face some difficulties in reverse logistics
processes. However, the main factor that the business should know in this
regard is that, in order to achieve the benefits of reverse logistics, it
should attach importance to resource and time allocation. Applications that are
managed smoothly and need to be integrated with the whole system in order to
Factors Supporting the Reverse Logistics
In order to achieve
product gain in the reverse logistics process, the company must make some
regulations in the fields of production, distribution and informatics. If these
are summarized briefly, the following can be essential:
products in accordance with the disassembly structure,
Improving the control
system by obtaining the correct information about the product,
Designing products in
accordance with recycling, disassembly and re-production stages,
Proper planning of
the logistics network for reversal and authorization of certain persons to take
Use of good
communication techniques in both forward and reverse logistics network,
Creating demand for
rework products and informing the customer adequately about the quality level
of the product.
Logistics, a versatile and leading business partner in its field, you can
successfully complete all your procurement, production and distribution
logistics processes, and you can increase your business efficiency by safely
delivering your products that are in the reverse logistics process.