Reverse Logistics
Reverse logistics is a description of all the operations related to the re-use of products and materials. The process incorporates planning, implementation, and control of the efficient, cost-effective movement of raw materials, in-process account of inventory, completed goods and information from the end-user to the point of origin, for the need of recapturing value of the appropriate disposal (Sathish and Jayaprakash, 2017). According to Chen et al. (2019), reverse logistics is the process of transferring goods from their typical final destination due to the resolution of capturing value, or for proper disposal. The definition of reverse logistics may also include refurbishing and remanufacturing activities. Another description offered by Sirisawat, and Kiatcharoenpol (2018), as the process through which surplus products are sold and managed as well as returned machines and equipment from the rental business. Typically, logistics entails processes through which the products are delivered closer to the final users. However, in reverse logistics, the process goes at least one step back in the supply chain process (Cannella, Bruccoleri, and Framinan, 2016). For example, products move from the final consumer to the supplier ad back to the manufacturer. In cases where the products from the producers move through the supply chain network, the main aim is to get it to the final user through the distributor.
Further process after the product gets to the final user can be categorized as a reverse logistics (Batarfi, Jaber, and Aljazzar, 2017). The methods which may be involved after the products get to the final user ma include management or disposal. In the automotive industry, the reverse logistics may consist of a case where the final product is devoid or defective, in this case, the product will move back the supply chain to the manufacturer (Morgan, Richey and Autry, 2016). When the manufacturer receives the product, they may decide to examine the product to find a solution, it a solution is not achieved then the product may be dismantled or disposed of altogether. Currently, governments are encouraging the manufacturers to consider producing products which they can derive value from if they re-possess such products (Morgan, Richey and Autry, 2016). It is upon the manufacturer to consider the means through which the said product moves from the final consumer to their production plants to derive value from the same (Morgan, Richey and Autry, 2016).