Question

Distribution (pp 394-396). Discuss reverse logistics and when a company benefits by using them versus when it could be better to simply replace the product.

Answer 1

Answer: The reverse logistics is the process in which the logistics operations are carried out to bring the product back from the customers to the company for the reuse of products or materials. It is the set of activities that are carried out for recapturing the value of the product and to end the life cycle of the product. This process is better for the companies as it allows the organization to recycle the product at the last stage of its life cycle and obtain valuable raw materials. For example recycling the mobile phones help the companies to not only reduce the waste generated but to also recover some rare metals through recycling which otherwise will be expensive for them to purchase new even after incurring the costs of reverse logistics. This also saves the environment and creates a responsible image of the company that benefits it at the marketplace. The reverse logistics does not benefit the companies in the cases where the reverse logistics may prove expensive and will add to the costs of the company. In such cases and where the products are bio degradable or recyclable at the local level then reverse logistics makes less sense.