What is reverse supply chain? – Quora

– Maintaining inventory of cars at a car rental shop or Maintaining inventory of empty containers at a CFS/ICD = Basic Inventory Management

– Maintaining inventory of cars at a car rental shop formultiple branchesor Maintaining inventory of empty containers formultiple locations= Multi-echelon Inventory Management (it depends on you if you want to use simple process or math algorithm to manage stuff like this)

– Reverse Supply Chain = Its the series of activities required to retrieve aused productfrom a customer and eitherdisposeof it orreuseit.

– Reverse Logistics = Reverse Supply Chain

In short, you can call car rental and empty container case a reverse logistics/supply chain if you focus on stuff like Repair, Repack, Reuse, Refurbish, Resale, Recycle, Return to Vendor, Destroy, Landfill and Donate. If you dont focus on these things, its just inventory management stuff.

Related QuestionsMore Answers Below

Why reverse logistics is not part of supply chain focus for majority of retailers?

How do I build supply chain resume?

Supply Chain Optimization: What is coolearth?

TheBusinessDictionarydefinesReverse Logistics as aflow of surplus or unwanted material, goods, orequipment back to the firm, through its logistics chain, for reuse, recycling, or disposal.

As you might imagine, the concept of reverse logistics isnt a new one. In fact, its been established since thePhoenicians began shipping amphorae of wine to Rome in 1,500 BC.

I think this article could be interesting for you:

After drinking any soft drink from a glass bottle(in India) people usually return the bottle to the retailer, then those bottles are collected by re-bottling plants via reverse logistics method i.e. A pick-up truck will carry the empty bottle back to the plant, and bottling plant will recycle/refill the bottle. These bottle will again dispatched to the market for consumption via logistics channel.

Buy a new TV/Cellphone under an offer like, return your old cellphone/TV back to the company, and get a brand new Device at discounted price. Now the old used device that you returned, will be collected from the retailer via reverse logistics.

, Supply chain author and enterpreneur

Reverse logistics is what happens to the product after the sale – product returns or recycling after use. A typical supply chain is focused around driving product from source, manufacturing and distribution to the customer.

Rental equipment, a topic we have actually dealt with, is therefore not a typical supply chain . What we found is that you need to be able to forecast in a sophisticated way in order to make decisions as to where and how much inventory to maintain and to determine when to move inventory around between different locations.

Its the series of activities required to retrieve a used product from a customer and either dispose of it or reuse it. And for a growing number of manufacturers, in industries ranging from carpets to computers, reverse supply chains are becoming an essential part of business.

Reverse supply chain refers to the movement of goods from customer to vendor. This is the reverse of the traditional supply chain movement of goods from vendor to customer. Reverse logistics is the process of planning, implementing and controlling

the efficient and effective inbound flow and storage of secondary goods and related information for the purpose of recovering value or proper disposal.

Typical examples of reverse supply chain include:

• Product returns and management of their

• Remanufacturing and refurbishing activities.

• Management and sale of surplus, as well as

returned equipment and machines from the hardware leasingthese cases, the resource goes at least one step back in the supply chain. For instance, products

move from customer to distributor or manufacturer.

Other instances of products reversing direction in the supply chain are manufacturing returns, commercial returns (B2B and B2C), product recalls, warranty returns, service returns, end-of-use returns and end-of-life returns.

What are some useful KPIs in supply chain management?

What are some interesting startups in supply chain/logistics?

What are some of the big companies that manage reverse logistics / reverse supply chain?

What are the scope of reverse supply chain management?

How does supply chain management work in practice?

Still have a question? Ask your own!

Why reverse logistics is not part of supply chain focus for majority of retailers?

How do I build supply chain resume?

Supply Chain Optimization: What is coolearth?

What are some useful KPIs in supply chain management?

What are some interesting startups in supply chain/logistics?