Reverse logistics

Reverse logistics, or "forward logistics", means transport of reusable goods. Reverse logistics has to do with the recovery of goods from the client, the retailer, to the environments of reuse and recovery of materials. Reverse logistics manages the recovery of these assets.

"Reverse logistics" is not a common term among sustainability professionals. Programs like SmartWay Transport Partnership of the EPA, whose objective is to help "the companies to move the goods in the cleanest and most efficient way possible".

Where do the unsold goods and returned items go? Where can the products go at the end of their natural life cycle?

They can be repaired, reconditioned and redistributed, or be re-manufactured and their materials returned to the manufacturing flow. Reverse logistics keeps products out of the waste stream and must be part of all sustainability strategies.

The Council of Logistics and Sustainability (RLSC) unifies these disciplines, for a better use.

From the management of customer service to the detection of fraudulent products, experts in reverse logistics face every day the business imperatives, the brand opportunity and its vulnerability, as well as regulatory compliance.

Reverse logistics and sustainability are related to:

  • Risk mitigation
  • Costs reduction
  • Brand improvement

A sustainable business is selective and careful in its use of resources, and nothing better encourages the reuse of resources such as reverse logistics.

It is necessary to be focused on recovering IT resources: fix and redistribute, provide spare parts, identify and eliminate doubtful products to have a better control of our equipment.

What are the benefits of implementing a reverse logistics process?

The practice of reverse logistics has become a discipline that generates cost reductions, brings efficiency and added value to the consumer experience and should not be seen as an expense but as an investment.

Some benefits of implementing the use of reverse logistics in your company are:

  1. It favors the image of the company to reduce the environmental impact.

    The eco friendly trend plays an important role in the reputation of a company, since today end consumers are increasingly demanding with the environmental conditions that are part of the products they consume.

    75% of the world's workforce has a behavior based on choosing eco-friendly products. According to the "Nielsen report," three out of every four millennials are willing to pay extra for eco-friendly products and services.

    Implemented correctly, the reverse logistics process can create a world of possibilities for companies to improve their image through sustainable solutions.

  2. Reduce costs by using reused materials to replace existing materials.

    Another benefit of reverse logistics is the minimization of costs, using raw materials from waste, such as designing containers with better properties for reuse.
    The recycling of cell phones and information technology companies that collect old computers are good options to begin the implementation of this process.

  3. Minimizes the industrial impact on the environment.

    By 2025 it is expected that the generation of Urban Solid Waste (RSU) tends to double because production per capita will increase from 1.2 to 1.42 Kg / inhabitant in the next 15 years; this is how the current production of 1,300 million tons / year will be 2,200 million for the year 2025.

    Environmental awareness plays a key role in business processes, specifically in reverse logistics where you can recycle or reuse the products already used, thus reducing your ecological footprint on Earth.

  4. Create campaigns to build customer loyalty.

    In addition to improving the image of the company and saving costs, logistics is an excellent opportunity to create loyalty campaigns with your customers.

    The dynamics of this type of initiative is that customers are invited to bring their devices to be discarded, then they are reviewed and classified. Those that are in good condition and that can be reused, are sold as second-hand devices.

  5. Opening of new markets for reused products

    The repair and recycling of IT assets help recover a part of the cost of these assets. They can be used for markets that can acquire this type of device at a cost beneficial to them.

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