Constraints in Reverse Logistics – How to Avoid them
Of late, the way of doing businesses has changed a lot due to the invention of various new schemes and trends. Among the line of new business concepts, reverse logistics is something simply unavoidable for modern day businesses. As the name says, this logistics involves the flow of goods in reverse order in the supply chain management. Now you may think why a product has to move reverse in the supply chain management. Simply read further to know the reason for this.
These days, the reverse movement of goods is triggered by various reasons. The first reason is that this logistics aids in products recycling that has become a global act. At present, the government is alarmed by the impact of environmental pollution caused by the used and waste electronic goods. The old computers, mobile phones, electronic chips and other things have become a serious threat to the land pollution. Therefore, the government has urged and mandated the manufacturing companies to recycle or safely dispose the old/used electronic items. Recycling helps the manufacturer to cut down the cost while satisfying the legal responsibility.
Though the process of reverse logistics has become beneficial to companies, it also has some constraints. Since this concept relatively new, the process is quite laborious. In traditional logistics, the products are properly tracked during the supply management, but this is simply difficult when the goods move in the reverse order. Here, the reverse movement of goods can be recorded with pen and paper, which is something time consuming, tiring and less safe. Moreover, there is a big problem of vehicle availability required for transporting the goods back to the manufacturer’s site.
Nowadays, there are many companies that offer reverse logistics services for various manufacturers and businesses. It is quite impractical for a manufacturer to handle the reverse logistics on its own as it affects the core business activities. By utilizing the service of the third party logistics company, a manufacturer can enjoy the benefits of reverse logistics while avoiding the laborious activities involved in reverse logistics.