Best Practices for Reverse Logistics

Best Practices for Reverse Logistics

Reverse logistics relates to all operations associated with reusing of materials and
products. Therefore, it involves the frameworks of planning, executing as well as regulating
the cost-effective and efficient raw materials’ flow in all processes of inventory, completed
products and other associated information from the consumption point to the origin point.
The process ensures effective recalling value as well as proper disposal. Despite not being
fully utilized, reverse logistics best practices range from returns, recalls, remanufacturing,
refurbishing and other related after-sales’ services. It is believed that logistics involves
typically activities that bring products closer to the consumer, while reverse logistics ensures
that the resource goes at least one step back in the chain of supply (Govindan, Soleimani &
Kannan, 2015).
The best practices for reverse logistic strategies will increase the awareness of its
importance in the organization, gain the support of senior management and design the
specific codes for tracking the reasons for return as well as establishing effective disposition
strategy for recalled or returned products. The reverse strategy should ensure accurate
assessment of the actual cost of returns, assigning a person responsible for returns and reverse
logistics’ policies, and establish a collaborative and educational process for all partners of the
supply chain. Furthermore, the reverse logistics should develop process and operating
systems that ensure returns information is traceable and visible throughout the chain. Besides,
the management should work with all partners to create joint return management and reverse

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logistics processes initiatives as well as ensure holistic processes for eliminating the silos that
are plaguing the reverse logistics chains for organizations (Govindan, Soleimani & Kannan,
2015).
Therefore, the reverse logistics should ensure best practices by crafting measurement
systems that drive results and ensure continuous improvement. Thus, the reverse logistics
should establish rigorous, visible and targeted measures as well as institute a process of
continuous improvement in the supply chain.

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References

Govindan, K., Soleimani, H., & Kannan, D. (2015). Reverse logistics and closed-loop supply
chain: A comprehensive review to explore the future. European Journal of
Operational Research, 240(3), 603-626.