What does “reverse logistics” refer to?

Reverse logistics refers to the process of moving goods from their final destination back to the manufacturer or a designated location for the purpose of recapturing value or proper disposal. This can encompass the return of products that are defective, unwanted, or surplus, as well as recycling and disposal efforts. By managing this process effectively, organizations can recover value that might otherwise be lost, reduce waste, and ensure compliance with regulations regarding product disposal.

This concept is crucial in supply chain management, as it helps companies maintain efficiency and sustainability. It contrasts with traditional logistics focused on moving products forward through the supply chain, underscoring the importance of both ends of the logistics spectrum. Understanding reverse logistics is vital for businesses seeking to optimize their logistics strategy and improve customer satisfaction through effective returns management.