What is reverse logistics? Overview of reverse logistics

Reverse logistics (reverse logistics) is still a relatively new concept in Vietnam. Although the reverse logistics model and process has clearly demonstrated the superiority of efficiency. In this article, LEC Group will help you have a more comprehensive view of reverse logistics.

What is reverse logistics?

Reverse logistics (reverse logistics) is the process of planning, implementing and effectively controlling the flow of raw materials, semi-finished products, and related information from consumption points to origin points. For the purpose of recovering value or disposing of in the most appropriate way.

Reverse logistics là gì?

Why is reverse logistics required?

Today, the recovery of goods is one of the indispensable jobs of manufacturers, intermediaries, wholesalers, and retailers. Therefore, reverse logistics will help recover goods to reduce costs, increase sales and improve customer service. These contributions will promote increasing the company's position in the fiercely competitive market today.

Reverse logistics là gì?

Typically, product recall will reduce the value of current assets (accounts receivable decreased, inventory value will be lower for goods recovered), reduce fixed assets (depreciation assets will increase), short-term payables will increase (related to repairs and reinforcement), sales will decrease and selling expenses will increase.

Because of these factors, we can see that reverse logistics is an important and integral part of the supply chain management system.

Comparison between reverse logistics and forward logistics

Reverse Logistics	Forward logistics
The forecast is more difficult	Forecasting is relatively simpler
Transport from multiple points to a point	Transport from one point to many points
The uneven quality of products	Unified quality of products
Product packaging is often destroyed	Product packaging is intact and standardized
The price depends on many factors	Speed is often not considered a priority Speed is important
Costs cannot be seen directly	Costs can be closely monitored
Consistent reserve management	Consistent reserve management
Conflicts over ownership and material responsibility	Property and liability are clear

Reverse logistics model and process

The process of reverse logistics consists of 4 stages as follows:

Stage 1: Gathering - includes activities necessary to collect defective products, unsold goods, and transport them to the point of recovery.
Stage 2: Inspection - at the recovery site, conduct product quality control, product selection and grading steps This is an important stage to determine the next process for most commercial products.

Reverse logistics là gì?

Stage 3: Disposal - when a product is recalled, the business can handle it in ways such as direct reuse or resale, product restoration (repair, refresh). , manufacturing, removing to get spare parts, ...
Stage 4: Redistribute the restored product. In this phase, logistics activities are applied to bring products back into the market and deliver them to consumers.

Above is the sharing from experts of LEC GROUP on reverse logistics. If you are looking for a business that provides complete and professional logistics services. Please contact us today to receive the best support!

LEC GROUP

Head Office: Road 4, Phu My 1 Industrial Zone, Phu My Ward, Phu My Town, Ba Ria - Vung Tau, Vietnam.

Add: No. 28 Thao Dien Street, Thao Dien ward, District 2, Ho Chi Minh City, Viet Nam.

Hotline: (+84) 909 800 136 & (+84) 901 388 136.

Email: info@lecvietnam.com & thao.nguyen@lecvietnam.com

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