Process Management in Reverse Logistics

Sertrans Blog - Process Management in Reverse Logistics

When evaluating 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 again revealed.

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 business.

The Importance of Reverse Logistics Concept in Logistics Processes

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 classifications:  

1. Production returns: It is the return of products emerging at any stage of production.

2. Distributor returns: The return that occurs when the final product reaches the end user to be delivered.

3.Customer returns: It includes the returns of consumers who use the final product.

What To Do For Successful Reverse Logistics Solutions

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. 

Therefore, necessary 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.

The production 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 reduce waste.

Factors Supporting the Reverse Logistics Process

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:

Arrangement of 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 back products,

Ensuring perfect product tracking,

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.

With Sertrans 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.