Reverse Logistics

Reverse Logistics (RL) has become an important part of a firm's management of their supply chains. Companies around the world are developing processes to move unsold and unwanted product out of their networks. RL has been defined as the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. RL plays a central role in companies processing of customer returns and product recalls. Effective RL also requires the use of the secondary market for products.