There is a term that is not known to many people, except if you are in the logistics business, this term is "Reverse Logistics".
Normal logistics, or direct logistics, of any product goes from raw materials, to components, and finally to assembly. Well, reverse logistics is the system by which, for different parts of the value chain, inventory, defective products, or waste can be reused, remanufactured, or properly disposed of.
In other words, reverse logistics goes from the end consumer back to the original manufacturer of raw materials.
However, the term is relatively new. This activity has been present or carried out by some industries over the past 100 years, but it is recognized that the term "Reverse Logistics" was first coined by James R. Stock in 1992. That’s why it may seem new to many people. Before 1992, there were terms like Repair, Recycling, Claims, Salvage, and Reuse to describe actions by which industries recovered products that no longer fit into the value chain.
Now, why bring up this term or activity? Well, the reason is that with the advancement of e-commerce, there is more reverse logistics activity across many more industries than before. Think about the millions of garments, shoes, electronic products, and many other goods sold online these days, and then think about what happens if you decide not to use them, or if the product wasn’t what you expected. You return it, and it enters a reverse logistics system where the seller receives it back.
The issue here is that, for most products, direct logistics and production systems are highly automated, but in reverse logistics, the activity requires more human labor. People are needed to inspect, evaluate, verify, decide how to repair, clean, repackage, and ship again, etc. Then comes the challenge of how to reintroduce the product into the market, whether as salvaged, repaired, inspected or cleaned, and repackaged.
This activity is labor-intensive, and for the case of North America, there is one country that can provide the labor costs needed to make reverse logistics: possible and affordable: Mexico!
Onilog has the expertise, Mexican permits, and professional staff to carry out this activity in a timely manner, with a cost advantage to turn your reverse logistics system into a success story.
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