Word of the Day: reverse logistics

Word of the Day Daily updates on the latest technology terms | July 22, 2018 reverse logistics Reverse logistics is the set of activities that is conducted after the sale of a product to recapture value and end the product's lifecycle. It typically involves returning a product to the manufacturer or distributor or forwarding it on for servicing, refurbishment or recycling. Reverse logistics is sometimes called aftermarket supply chain, aftermarket logistics or retrogistics. The aftermarket processes that a product can undergo in reverse logistics are numerous and include: Remanufacturing - rebuilding the product with reused, repaired or new parts Refurbishment - resale of a returned product that has been repaired or verified to be in good condition Servicing - a broad category that includes customer service, field service and product returns, such as issuance of return merchandise authorizations Returns management Recycling and waste management Warranty management Warehouse management Like other supply chain management (SCM) processes, reverse logistics can be made more efficient and profitable with better planning, management and execution, and is a key component of service lifecycle management (SLM). Reverse logistics can have a significant impact on a company's bottom line, in good and bad ways. For example, generous return policies can encourage distributors and retailers to order more stock than they expect to sell, which can increase inventory costs for manufacturers. Proper disposal of products can minimize penalties from noncompliance with environmental regulations. The same SCM and e-commerce technologies involved in moving products to consumers (known as forward logistics) are used in reverse logistics, including barcodes and scanners used to track returns, materials handling systems in warehouses and Electronic Data Interchange (EDI) for transmitting documents between supply chain providers. SCM and ERP software vendors were initially slow to support reverse logistics, according to some experts, but most sellers now include some reverse logistics features in their suites. A number of niche vendors specialize in it. Third-party logistics providers (3PLs) also offer reverse logistics services. Quote of the Day "Online stores in particular can suffer big losses if they don't have effective reverse logistics management processes in place to deal with the escalating rate of their sales being returned." - Scott Koegler Trending Terms product lifecycle supply chain management refurbish service lifecycle management 3PL logistics management Learning Center How do e-commerce returns affect reverse logistics management? Excelling at reverse logistics management requires having in place a solid policy on e-commerce returns. Here are some considerations and some tips on how to approach it well. IoT logistics moves from connected fleet to connected things Roambee's Sanjay Sharma explains why taking a connected things approach to fleet management -- versus a connected fleet approach -- helps better track the health of shipments. Voice-controlled automation of logistics is now possible The next phase of connectivity is here: voice-controlled automation. LogiNext's Manisha Raisinghai explains the benefits of voice in logistics. Which supply chain visibility tools help improve logistics? Today, six technologies -- new and older -- are functioning together to create more effective supply chain visibility tools. Here's a look. What is the difference between 3PL and 4PL? Just what are the differences between 3PL and 4PL services? The terms can be confusing. Here's a look at how they differ. Writing for Business Supply chain visibility can help manufacturers in managing _______ periods of inbound and outbound activity. A. peak B. peek C. pique Answer Stay in Touch For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com Visit the Word of the Day Archives and catch up on what you've missed! FOLLOW US About This E-Newsletter This e-newsletter is published by the TechTarget network. To unsubscribe from Whatis.com, click here. Please note, this will not affect any other subscriptions you have signed up for. TechTarget, Whatis, 275 Grove Street, Newton, MA 02466. Contact: webmaster@techtarget.com Copyright 2018 TechTarget. All rights reserved.