Returns Processing

Returns processing, or reverse logistics involves the handling of product returns, transit packaging and surplus items. Reverse logistics stands for all operations related to the reuse of products and materials. It is “the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. It is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. It also includes re-manufacturing and refurbishing activities. The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. The resource goes at least one step back in the supply chain. For example, goods move from the customer to the distributor or to the manufacturer.

Any process or management after the sale of the product involves reverse logistics. If the product is defective, the customer would return the product. The manufacturing firm would then have to organize shipping of the defective product, testing the product, dismantling, repairing, recycling or disposing the product. The product would travel in reverse through the supply chain network in order to retain any use from the defective product.