Reverse Logistics

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Definition:

What is Reverse Logistics?

Many organizations and individuals have tried to define Reverse Logistics. Since the term is fairly new we refer to the term "reverse logistics" as all activity associated with a product/service after the point of sale, the ultimate goal to optimize or make more efficient aftermarket activity, thus saving money.

The chart below shows how Reverse Logistics comes into play in the Supply Chain.



Other terms synonymous to Reverse Logistics (RL) are Aftermarket Logistics, Retrogistics, or Aftermarket Supply Chain. The Reverse Supply Chain is also a term used in the industry. RL is not to be confused with forward logistics or getting the product to market commonly known as the Forward Supply Chain. Types of activity common with reverse logistics includes: logistics, warehousing, repair, refurbishment, recycling, e-waste, after market call center support, reverse fulfillment, field service and many others.

"In other words, anytime money is taken from a company's Warranty Reserve or Service Logistics budget, that is a Reverse Logistics operation" - Gailen Vick, President - Reverse Logistics Association

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Best Practices:

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GAAP: Generally Accepted Accounting Princples

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XBRL Tag: