Reverse logistics is the process of moving returned goods from customer destination for the purpose of capturing value or proper disposal. It includes processing returned goods to the supplier due to damage, restock, buy back/excess inventory, hazardous waste as well as packaging and shipping materials from the end user to logistics function all the way to reseller and/or supplier.
Most companies do not view handling product returns as a core competency, reverse logistics tasks are frequently handed off to a 3PL. It gets the process out of the warehouse and the third party consolidates the returned or disposed goods and ships economic size containerloads to save transportation costs.
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