This reverse logistics podcast is courtesy of Senior Vice President, Larry Laux:
Reverse logistics gets its name in relation to forward logistics. As a business sells products, they can have the products moved from a warehouse directly to the consumer or to distributors. Reverse logistics, as the name implies, is exactly the opposite. Part of the reverse logistics marketplace addresses the return of a sales item for credit. This podcast is focused on aftermarket service.
Companies with a reverse logistics function, bring non-functioning units or units that show some sort of defect or error code back into a regional repair center or to a satellite repair facility where they will be looked at and repaired on the bench by a qualified engineer. The reverse flow of these products or sub-components back to an organization is what we refer to as reverse logistics.
The problems of reverse logistics are many in that at first we may think it is just like forward logistics except upside down—but this is in fact not the case. There are many challenges, some examples are:
- Determining & tracking the value of a unit
- Keeping track of units while in the service chain
- Dealing with warranties offered by retailers or OEMs
- Working with 3rd party aftermarket support
To hear more about reverse logistics and the role it plays in field service management please listen below or download Larry’s Reverse Logistics white paper.
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