Does your business want to save operating costs, increase business competitiveness, want the forward logistics process to go smoothly,...so you need to effectively apply Reverse Logistics Services in the supply chain? You are applying the Reverse Logistics model but encountering problems and difficulties at some stages, so you need to understand the standard process of this common type of service? You have not yet distinguished between reverse logistics and forward logistics, what are the similarities and differences so that you can effectively combine both models simultaneously? PROSHIP.VN will use this article to help businesses understand what Reverse Logistics is , how important reverse logistics is, why reverse logistics is needed, and how the reverse logistics process is carried out through steps. From there, there will be correct and reasonable plans in production - business - supplying goods to end customers.
>>See more:
What is Reverse Logistics and how important is it to businesses?
What is reverse logistics?
What is reverse logistics? What is reverse logistics? Reverse Logistics or Reverse Logistics is the process of planning, implementing and controlling the bringing of raw materials, semi-finished products, finished products or information from the point of consumption to the place of production with the goal of recovering, reprocess.
* For example: Reverse Logistics is easy to see such as large car manufacturers recalling a series of cars they have brought to the market due to technical problems, or electronics companies recalling phone products due to software errors, Battery errors, etc. All will be recalled to the manufacturer to process, fix problems and send back to consumers the most complete version.
The importance of reverse logistics for businesses
Reverse logistics is an indispensable job in the production supply chain of businesses, distributors, wholesalers and retailers. The reason reverse logistics becomes an important service in logistics activities is because it helps:
- Reducing fixed assets means asset depreciation will increase;
- Decreased value of current assets is a decrease in receivables, the inventory value of goods will be lower than the goods recovered;
- Reduced sales revenue and increased selling costs;
- Increase short-term payables (amounts related to repairs and reinforcement).
How important is Reverse Logistics?
What is reverse logistics or what is reverse logistics has been answered by Proship above. Next, you need to understand that, for the supply chain of goods, Reverse Logistics plays a very important role. Specifically:
Helps businesses save costs
Although reverse logistics increases the costs of transportation, storage, repair, etc. of businesses. However, if done well, Reverse Logistics activities will help businesses save on other fees such as packaging fees, raw material fees, reselling products to increase revenue, etc.
Helps better protect the environment
Recalling defective or damaged products that can be recycled, used or destroyed properly will help limit negative impacts on the environment.
LATEST UPDATE PICTURES OF CONTAINER PROSHIP LOGISTICS TRACTOR
Helps the forward logistics process run smoothly
Specifically, at some stages of the forward logistics process, unsatisfactory products may appear. Therefore, to ensure forward logistics activities run smoothly, reverse logistics will take on the responsibility of bringing products back to the market promptly.
Increase competitiveness for businesses
For businesses with good product recall activities, it will help them increase their competitiveness in the market. Because, they meet and satisfy customers' needs well, even if the product is defective, customers can still accept it.
Contribute to improving customer service levels
A good recall policy contributes to a competitive advantage for the business because customers' needs are well satisfied (even when they receive defective products).
Compare the difference between reverse logistics and forward logistics
Proship Logistics will continue to share with you the difference between reverse logistics and forward logistics in the following table:
| Criteria | Reverse logistics | Forward logistics |
| Logistics Potential | It is difficult to predict in advance. | Simple and easy forecasting. |
| Shipping process | Transport from multiple destinations to one destination. | Transport from one point to multiple points. |
| Product quality | Uneven quality. | Good product, same quality. |
| Packaging | No longer intact, torn or destroyed. | The product is intact and packaged according to standards. |
| Price | Depending on many factors, there are differences at different times. | There is consistency and uniformity in supply costs. |
| Speed | No is the top priority. | Considered important. |
| Expenses incurred | Uncontrollable. | Strictly controlled. |
| Reserve management methods | There is no consistency in reserve management. | Consistent reserve management. |
| Responsibility | There is a conflict between ownership and responsibility. | Ownership and material responsibilities are clear. |
How do the reverse logistics process steps take place?
The Reverse Logistics process includes 4 basic steps:
Phase 1: Gathering
Collect unsold products, defective products or products requiring recycling from the point of consumption.
Phase 2: Check
Conduct quality inspection and product classification after recall.
Stage 3: Processing
Carry out appropriate disposal activities for recalled products, including repair, reuse, recycling or disposal.
Phase 4: Redistribution
Return processed products to the supply chain or market using new distribution methods.
So, you have understood what Reverse Logistics is , how many steps does the reverse logistics process consist of, what role does reverse logistics play,... to effectively maintain all activities, processes of controlling goods, raw materials,... Contact 0909 344 247 for advice and direct quotes on services related to Logistics, transportation and import-export of cheap goods at Proship.
