Integration of Reverse Logistics into
Retail Logistics
How does reverse logistics integrate into retail logistics?
RETAIL AND REVERSE LOGISTICS 2
Integration of Reverse Logistics into
Retail Logistics
As stated in Fernie and Sparks (2014), retail logistics is related to the accessibility of a
product. This involves making the product available to the best location at the correct time. In
recent times, consumers expect that goods will be obtainable to them immediately whenever
they require them. Therefore careful thinking, planning, and execution is taken to move the
finished product from manufacturing to consumers. Also in order to reduce costs, retail
logistics needs to be performed successfully by the use of the suitable division of supplies.
Through the latest forms of technological advancements, vendors can offer improved services
to cater for the increased demand of goods. Products may end up being less costly, last longer
and have decreased occurrences of going out of stock using the right form of retail logistics.
Explored in Fernie et al. (2014) is that the retail logistics process is comprised of a number
of processes namely storage, inventory, transportation, packaging, and communication.
Storage involves amenities such as storehouses and supply areas used to put away products in
readiness and expectation for their demand. Inventory deals with the records that detail the
quantity and the whereabouts of stock stored for each good. In transportation, the various
volumes and extents of vessels including mediums of transport together with the timetable
and obtainability of personnel and vehicles are the main objectives tackled. Sellers take into
account the packaging of a product making sure that it is easily portable, appropriately
presented, and is within or less than the stipulated cost to maintain their sale capacity at the
point of sale. Finally, communication is in terms of dissemination of information about
quantities, amounts, rates, and progress helps attain data to improve on the current logistics
system.
RETAIL AND REVERSE LOGISTICS 3
Reverse logistics is more complicated as compared to retail logistics as explained in
Lee (2009). Reverse logistics is the return of products back to the origin for purposes resale
to a different market, repair and restoration back to inventory or destroying. Challenges that
face these logistics involve a necessity to offset the cost involved in the returning of the good,
the demand to take apart the item once returned in order to reassemble it and the constraints
involved in setting up the process of reverse logistics. In addition, the time at which the
purchased good will be returned, the condition of the materials comprising of the item and the
difficulty of pairing different parts as requested or demanded by the customer are other
problems in this system.
As explained in Stă nciulescu (2011), there is a number of ways reverse logistics can
be a major component in the retailing of a particular good. A lot of money can be salvaged
through the return of products. A given fraction of sales are dependent on the cost of return
and can result in profit rise. This can be done through a distinctive outlined system of
transportation available on the internet that permits a conspicuous total return. Also receipt of
the returned product irrespective of the complaints of customers or insistence on the reason
for return ensures that consumers dedication and loyalty to a company’s services. The
observance and study of how many products are returned and specifically which regions it is
prevalent in may end up decreasing the fraction of returned goods to up to a third of the funds
made available through rectifying the process. This may result in money set aside and utilized
for more important projects in the company. On top of that, costs involved with management
and shipping may be reduced to some extent or done away with completely by combining
and boosting the process of distribution. This process, for the most part, can also be advanced
through the removal of non-refundable items or goods to be destroyed prior to being stacked
into the vehicle for the extensive trip home.
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References
J. Fernie and L. Sparks (2014). Retail logistics: changes and challenges
G. C. Stă nciulescu (2011). Importance of Reverse Logistics for Retail Acts, Supply Chain
Management – New Perspectives, Prof. Sanda Renko (Ed.), ISBN: 978-953-307-633-
1, InTech,
Y. J. Lee (2009). Integrated Forward-Reverse Logistics System Design: An Empirical
Investigation.
