What is reverse logistics?

Reverse logistics is one of the key elements of the circular economy. It is a trend that has arisen due to the concern of companies to be more responsible and respectful of the environment.

What is reverse logistics?

In conventional or classic logistics, a product is moved from one point to another (from A to B). In reverse logistics, the product is moved from point B to point A. Thus, companies establish a recovery route for industrial, electronic scrap or construction waste, for example, depending on the company’s activity. 

In this way, reverse logistics is related to the circular economy because its main objective is to recycle or reuse products and materials in order to extend the life cycle of products as much as possible. 

In short, it facilitates the creation of selective waste collection channels, whether industrial, end-of-life vehicles, WEEE or construction waste.

Reverse logistics process

Reverse logistics is a necessity and an opportunity to increase the quantity and quality of recycled material. It is also important to emphasise that depending on the sector in which you operate, the elements of reverse logistics may vary. However, the most common process to follow is as follows: 

1. Removal of goods: this consists of the collection of the products. Depending on the type of merchandise and the conditions of the service, the manufacturer may indicate guidelines to be followed for its management. 
2. Classification of goods: once the goods have been collected, they are classified by category. 
3. Return to the warehouse: after sorting, the route of the products to be returned to the warehouse of origin is organised. 
4. Destruction of unusable goods: products that cannot be returned to a production cycle are destroyed and deposited at the appropriate points. 
5. Recovery, recycling and management of materials: products that have been classified as reusable or recyclable are managed to extend their useful life cycle. In this phase of the process, it is very important to pay attention to those that require special management such as construction waste or WEEE. 
6. Documentation and follow-up: for the completion of the reverse logistics process, it is necessary to fill in the required documentation.

Benefits of reverse logistics

Due to its multiple benefits, many sectors are committed to this strategy aimed at extending the life cycle of products and processes.

1. Stock control. Return operations involve a great effort for companies, so there is greater control over resources and products, especially inventory.
2. Care for the environment. As we have already mentioned, reverse logistics allows us to reduce the waste we generate, thus minimising the impact on the environment. The material that is returned to the point of origin forms part of a recycling or reuse chain.
3. Cost reduction. This allows the manufacturer to re-manufacture new material from it and save costs on the purchase of raw materials. By considerably reducing the number of packages, the costs of manufacturing the product are also reduced.

Product traceability helps us to act more efficiently at all stages of the process. This results in a better service for society, a lower environmental impact and greater profitability for companies.