Reverse logistics is increasingly becoming a factor for manufacturers and customers. Reverse logistics can be defined as the flow of purchased products back to the supply chain for recycling, replacement or disposal. Some of the benefits of a well planned reverse logistical process are:
Reducing energy or fuel cost. A better network distribution design will reduce energy cost, and provide savings to all on the supply chain network. Furthermore, energy efficient assets (e.g. new environmentally friendly bottle coolers) will not only save costs for customers, but will also have a positive impact on the environment.
Improved packaging design. Improved packaging and design can reduce transportation cost and reduce waste. Improved packaging and an effective reverse logistics design will increase recycling and reduce the need for landfills. It can furthermore provide opportunities for the reuse of products and packaging (e.g. returnable bottles).
Less expired products. An improved system will furthermore reduce expired products and save money for both manufacturer and customer.
Competitive edge. A more effective and greener reverse logistics process can provide the organization with a competitive edge in the market, and lead to improved brand loyalty and brand recognition.