Managing Reverse Logistics to Improve Supply Chain Efficiency and Reduce Cost
Reverse logistics can represent a significant chunk of supply chain cost, and it’s typically not very well managed, it’s time to manage reverse as an integral part of supply chain management.
Reverse logistics is like cleaning up the morning after a big party – a mess that no one really wants to face, resulting from things that are left over or ill-used from the day before.
The notion of reverse logistics isn’t new, of course.
The function has been around since the Phoenicians began shipping amphorae of wine to Rome in 1,500 BC.
The movement of product invariably results in the unintended consequences typically referred to as “over, short and damaged” (OS&D) along with the simple need to deal with unsold and returned items.
However, the opportunity to improve overall cost efficiencies has pushed companies to begin looking at the flip side of logistics as the “new frontier” in the continuous improvement of supply chain performance.
What was once mainly an afterthought now has a name. And in a growing number of cases, there’s now a clear mission: How do we manage reverse logistics as an integral part of supply chain management to improve efficiency and reduce cost?
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