What Is a Reverse Supply Chain Management System?

May 24, 2017

Now that you have put so much effort into tweaking your forward supply chain in order to make it efficient, you need to analyse whether or not you have an effective reverse logistics or reverse supply chain management system in place for your business. Companies across this country are discovering that they need to improve how they handle returns along with remanufacturing, refurbishing or other elements of reverse logistics. In addition, there is a new awareness of the profitability of enacting such a system in a quality manner.

Definition of a Reverse Supply Chain

The reverse logistic or supply chain is simply the movement of products back to your company from your clients or customers. It is the opposite of the forward logistics process of moving your goods to your clients or customers. You will need to plan carefully to ensure that your process controls the inbound reception of the goods in an efficient manner. In addition, your storage methods, reprocessing and in some cases, disposal procedures should be effective for your needs. Often times, when you handle returned goods in the right manner, you can recover value from them even if they are unusable for reshipment in their present state. Most reverse logistics plans include such processes as the following ones:

• Managing products returns
• Sale of surplus items that range from small items to large pieces of machinery
• Recycling appropriate items into new products if pertinent to your goods
• Refurbishing damaged or worn items to offer them for resale

Steps to Include in a Reverse Logistics Plan

To ensure that your reverse supply chain management system is effective, you must include the following steps whenever they are pertinent to your merchandise:

• Acquisition of returns by your customers or clients
• Transportation of the returns to the your chosen destination in case you outsource your warehousing
• Assessment of returns to determine the next step with them in your return supply chain plan
• Refurbishing, recycling or remanufacturing of the returns
• Developing a client or customer base in the secondary market
• Reselling returns or the results of refurbishing or remanufacturing them in order to recover value

For further details about a reverse supply chain management system and how we can assist you in your efforts, contact Challenge Packaging and Warehousing Solutions. We provide a wide assortment of packing and distribution services that help companies serve their customers or clients in a quality, reliable manner. All of our services are available on an outsource basis and are highly affordable and customisable to fit your exact specifications.

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Email: info@cpacks.com.au

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