While forward logistics deals with the movement of goods from manufacturers to customers, the concept of reverse logistics is just the other way round. It refers to the flow of goods from customers to manufacturers, that is, from the final destination to the point of origin. In the present competitive scenario, reverse logistics plays a significant role in increasing profitability of organisations as it helps companies to reclaim the value of a product through product recycling, which otherwise is lost or diminished. Some of the leading companies in Advantages of reverse logistics According to a survey conducted by ShippingBiz360, 50% of the respondents feel that reverse logistics is gaining prominence in the Indian market, whereas 35% feel the other way round. The remaining 15% are uncertain about the same. “Reverse logistics help companies to understand the shortcomings in their products and consequently improve upon it,” says Ajit Choudhary, proprietor of Unity Logistics Private Limited, a mid-sized logistics firm in With worldwide concerns being raised over the issue of environment degradation, reverse logistics also plays a vital role in adhering to the environmental norms. It reduces the threat posed by electronic waste (e-waste) such as used mobile phones and computers by disposing them safely. “In order to retain customers, companies are using reverse logistics as a brand-switching barrier. Although reverse logistics is still at a nascent stage in Reverse logistics is all set to gain momentum with Government of India’s (GOI) effort to make manufacturing companies liable for their products till the end of its life cycle. Therefore, most of the companies will be forced to have product return policy, thereby giving impetus to reverse logistics. Arup Choudhury |
