What is Reverse Logistics?

Reverse logistics is the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of customer service, recapturing value or proper disposal.

In a survey of major electronic and electrical manufacturing companies an average returns rate of 8.46% was reported¹.

Reverse Logistics is the poor relation in SCM, often referred to as a Black Hole.

The Supply Chain Council has recently added Return as the fifth key process in their Supply-chain Operations Model: Plan > Source > Make > Deliver > Return.

¹ RLEC Projects, Consumer Electronics Manufacturers' Survey, Chicago IL