Impacts of Reverse Logistics Technology to Chain Supply Management

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What is reverse logistics?

Reverse logistics is a process where companies promote and work towards environmentally efficient activities. They promote these activities by encouraging reusing, recycling, and decreasing the number of materials used in their production.

The most understandable aspect of reverse logistics entails reducing materials usage in the forward logistics process and systems. This ensures that minimal materials are flowing back, reuse of materials is possible, and facilitates the recycling process.

The process aims at reducing waste materials from the product design phase and consolidate the whole product life cycle, beginning from the product transportation to the final disposal. All these help reduce the amount of waste downstream and allow the products to flow back in the chain for reuse, recycling, and resell to the secondary market.

How Does Reverse Logistics Affect the Supply Chain Management in the UK?

Reverse logistics play another critical role in supply chain optimization. Supply chain management always accounts for and highlights the flow of goods in all different stages, either for the reverse or forward logistics. This can boost the returns and increases supply chain costs which eventually harm the profitability of the business.

Why do companies monitor reverse logistics in the supply chain?

Companies monitor reverse logistics in the supply chain to identify ways to process and dispose of products. There is much information on how goods move back and forth through the supply chain. And businesses use such information to meet their delivery goals.

Every organization set their simple goal of on-time delivery while others prefer to go for the “perfect order.” But that doesn’t matter; every goal aims to find a suitable score in terms of time, condition, quantity, documentation, and invoice.

The only way one can achieve a perfect order is through monitoring data, developing metric targets, and improve processes based on their own results. But reverse logistics is the centre and the drive mechanism for all these processes, and it can help you achieve the perfect order in your supply chain management systems.

What is the future of reverse logistics?

The most viable future of reverse logistics is to minimize all disruptions from business returns. The most industry that will benefit from this method abundantly is eCommerce. Why? Because they are increasingly booming in the retail business, their sales return volume keeps improving every day. Other businesses can also apply reverse logistics to integrate all sections of their return processes.

They can integrate returns by linking product data and the process that staff should follow while handling products. They need to document what happens to the returned items- whether they need to reschedule them for resale, reused as raw goods, repairs; the supply chain allows these integrations.

The future of reverse logistics entails integrated supply chain management software that enhances all these determinations, providing relevant business reports.