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Warehouses have a very important role in attempting to improve reverse logistics processes. They can move along several fronts. Key roles are:
1- Streamline turn-in procedures
2- Route items with an eye to what happens to them next
3- Integrate the forward and reverse pipelines
Warehouses play an important role in performing reverse logistics.
Most of the physical work related to product recall, reclamation and disposal of overstock and damaged inventory is performed at warehouses.
Reverse logistics involves the handling of controlled and regular inventory.
Controlled inventory consists of hazardous materials and product recalls that might have potential health or environmental implications.
The controlled inventory needs to be reclaimed under strict scrutiny to prevent possible redistribution or improper disposal.
Regular inventory represents products that are damaged or aged beyond the recommended sale-by-date.
Reverse logistics offer typical challenges because the packages are often broken or not packaged properly; it also requires significant manual sorting and inspection. However,the opportunity to recover cost by reimbursement and recycling is significant
I fully agree with the answer been added by MR Nasir Hussain And you too.............. Thanks
Whether its defective, hard to use, or the customer just changed their mind, returned items have a nasty habit of piling up and choking supply chains. Don't let regurgitated products throw a wrench in your system, establish a sound strategy for dealing with reverse logistics.
· Great...Here Comes Another One!
The generous return polices provided by most major retailers these days ensures that there is always a given percentage of returned products working their way back up the supply chain. Call it reverse logistics, Aftermarket Logistics, Retrogistics, or Aftermarket Supply Chain, every business owner who has to deal with returned products will generally agree it is a pain. On top of that, most managers consider returns a necessary evil, and therefore assign a very low priority to dealing with them -- you should not underestimate the role of warehouses in reverse logistics. This can often result in inefficient supply chain practices, such as ordering new inventory while as-new returned products are sitting in the warehouse dock.
· What Happens When You Don't Use Them?
Establishing an efficient way of dealing with reverse logistics can become a competitive advantage. Your suppliers would not take you seriously if you dressed inappropriately for meetings, nor will they if you deliver returned items two months late. All too often reverse logistics are piled on top of regular supply chain warehouses. The returns section can become a tangled mess of SKUs, with defective and "good as new" products becoming hopelessly entangled. This is usually the case when it is considered a low priority. Yet the lack of a well thought out reverse logistics system can crush an organization. For example, the90's era online store Value America -- not exactly a model of ideal corporate governance in any area -- did not have a functioning reverse-logistics system of any kind. Employees were just as likely to walk home with a returned computer as it was likely to be returned to the manufacturer. How did things get this bad? Well, in Value America's case, they were shipping direct from distributors, so they had no warehousing of any kind.
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