What Is Reverse Logistics?

Much of the infrastructure today is designed specifically for the logistics of bringing cargoes from one end to another. But, reverse logistics, which is simply reversing the flow of cargo, poses significant challenges. Reverse Logistics often go hand-in-hand with the development of recycling. But, the value proposition of reverse logistics expands further than just the scope of recycling. Reverse Logistics is also spoken in one breath with “Sustainable Supply Chain Management”, which deems this final stage of logistics a “Closing of the Loop” in the supply chain. It is a strategy utilized by companies to recover materials from sold goods to increase overall sustainability. Reverse Logistics scrupulous process of planning, implementing and controlling the backward flow of raw materials, in-process inventory, packaging, and finished goods, from manufacturing, distribution or use point of proper disposal.

The key challenge is that, in all cases, the products sold are not “returned” homogeneous, whereas the products sold at the beginning, is homogeneous. What we meant by that is that all products after either reaching the end of its useful life or returned for reasons unforeseen, do not come back to the manufacturer in the same condition. Assembly is markedly easier than disassembly. In the case of electronic waste recycling, it goes through the tedious process of sorting, separating and cleaning in order to return to the root of the supply chain.

And this is where companies struggle, to place a value of reusing and recycling waste with reverse logistics instead of the cheaper alternative of using fresh raw materials. In this blog post, we will see how reverse logistics systems have developed in the area of E-Waste Management. A problem area that is a growing concern for not just reducing the effects of E-Waste, but sustaining the supply-ability of electronics raw materials. Looking into the E-waste management should shed some light on the difficulties in recycling and reverse logistics.