LEAN REVERSE LOGISTICS
In the early days, the reverse logistics focus was on the front-end of the retailer’s return process. It was meant to provide the customers with the ability to return defective or unwanted merchandise. The facilitation of the returns was a courtesy that turned into a competitive differentiator in retail. It wasn’t long before the retailers started seeking for the same concessions from distributors and manufacturers, causing the development of capabilities upstream in the supply chain. The constant evolution has driven the focus from the stock rotation and transportation cost controlling to managing consolidated return centres where the material would be refurbished for reselling.