What is reverse logistics?

Reverse logistics involves sending a product back through the supply chain to its sellers and manufacturers. Unlike forward logistics, the flow of goods in reverse logistics is from the point of consumption to the point of origin. Examples include product returns by customers, return of unsold goods by distributors, recycling of goods, and the remanufacturing of goods from returned or defective items.

Today, many companies use reverse logistics to build customer loyalty, while a few others deploy this strategy to stay competitive in the market. The broad objective is to recover value from assets and increase revenue.

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