Cooperation in Reverse Logistics

Many businesses have now realized that a Reverse Logistics system can be used to gain competitive advantage. Even the best retailers and vendors now have reason to review how their returns programs are managed. New technologies and service providers now offer an opportunity to improve overall ‘total returns performance’. This means not only reducing the ‘total cost of returns’, but utilizing returns to improve customer loyalty, merchandising and product performance. Improving ‘total returns performance’ can transform an increasingly costly and complex process into a competitive advantage. It has forced businesses to reengineer their business processes and look into what can be the next practices in business rather than adopt best practices. Reverse Logistics is a very complex and specialized area of any supply chain and it involves handling individual incoming parcels, opening and inspecting products, communicating with internal departments, customers and vendors and then directing products into disposition channels which will provide the highest value. It is necessary to have a synchronized effort from all the supply chain partners for Reverse Logistics to be successful. This paper explains the various elements of reverse logistics, the need for cooperation in reverse logistics and the opportunities which arise through the processes of Reverse Logistics.