What is Reverse Logistics – Everything You Need to Know

You’ve probably heard and wondered what reverse logistics is, right? But did you know that it is an important process to prepare companies, traders, and consumers for conscious disposal?

It is through reverse logistics that it is possible to define an end in the life cycle of products. Mainly those that cause negative impacts on nature. They are garbage that should not simply be thrown in dumps and sanitary landfills, as they contain toxic and non-biodegradable elements in their composition.

Reverse logistics emerges as a solution to deal with this difficulty to decompose the material. Or even, that deserves extra attention. The idea of ​​reverse logistics is to look at the product path in the opposite way, that is, from the consumer to the manufacturer. That product that goes, must come back after sale or consumption.

Currently, consumption leads us to have many products that become obsolete over time, or stop working and need to be discarded. In some cases, it is, even more, a matter of generational exchange, of fashion, such as cell phones, computers, and so many other electronics. These should not be thrown in the trash without environmental responsibility. This is where reverse logistics comes in.

To do so, companies need to organize and apply the process that opens the door to responsible and sustainable disposal. It is important for the well-being of society, for the maintenance of nature, and adds value to the brand. Check now for more information and details about what is reverse logistics.

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What is reverse logistics?

Reverse logistics propose procedures that help the best disposal of products that have already passed through consumption. That is, where and how the product should be thrown away after the consumer stops using it. There must be sustainable alternatives, offering opportunities for these wastes to be reused or disposed of correctly.

This process must be thought out and articulated by the companies responsible for the production and distribution of the product or service. In fact, reverse logistics is mandatory for some companies, manufacturers, distributors, and traders. For example, products such as pesticides, batteries, tires, lubricating oils, fluorescent lamps, and electronic products.

In reverse logistics, the disposal of the product that has returned to the manufacturer due to some damage must also be considered. In this way, even defective products should not simply be thrown away. They are evaluated and the destination is reset, so it can be reused, in some way, or disposed of correctly.

what is reverse logistics in supply chain management | reverse logistics exemples importance
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How did it start?

The concept has been used since 1990 when companies started to worry about the after-sales and post-consumer impacts of their products. The products considered the most toxic and harmful to the environment were the first to be articulated in this universe of reverse logistics.

In 2010, in Brazil, the publication of the National Solid Waste Policy (Política Nacional de Resíduos Sólidos – PNRS in Portuguese), strengthened the need to expand responsibility for disposal. Therefore, it approved Law nº 12.305, defining reverse logistics as an “instrument of economic and social development characterized by a set of actions, procedures, and means aimed at enabling the collection and return of solid waste to the business sector, for reuse, in its cycle or in other production cycles, or other environmentally appropriate final destination.”

Goals

The objectives of reverse logistics are to call on manufacturers, importers, distributors, and traders to be responsible for the product life cycle. The PNRS provides 15 reverse logistics objectives, all objectives are linked to socio-environmental well-being. It is a movement to reduce the impact caused by the incorrect disposal of toxic and non-biodegradable waste.

The objectives:

  • protection of public health and environmental quality;
  • non-generation, reduction, reuse, recycling and treatment of solid waste, as well as an environmentally adequate final disposal of waste;
  • encouraging the adoption of sustainable patterns of production and consumption of goods and services;
  • adoption, development and improvement of clean technologies as a way to minimize environmental impacts;
  • reduction in the volume and danger of hazardous waste;
  • the incentive to the recycling industry, with a view to promoting the use of raw materials and inputs derived from recyclable and recycled materials;
  • integrated solid waste management;
  • articulation between the different spheres of public power, and between these and the business sector, with a view to technical and financial cooperation for the integrated management of solid waste;
  • continued technical training in the area of ​​solid waste;
  • regularity, continuity, functionality and universalization of the provision of public services for urban cleaning and solid waste management, with the adoption of managerial and economic mechanisms that ensure the recovery of the costs of the services provided, as a way of guaranteeing their operational and financial sustainability, observed Law No. 11,445, of 2007;
  • priority, in government procurement and contracting, for: a) recycled and recyclable products, b) goods, services and works that consider criteria compatible with socially and environmentally sustainable consumption patterns;
  • integration of collectors of reusable and recyclable materials in actions involving shared responsibility for the life cycle of products;
  • encouraging the implementation of the product life cycle assessment;
  • encouraging the development of environmental and business management systems aimed at improving production processes and reusing solid waste, including energy recovery and use;
  • encouraging environmental labeling and sustainable consumption.

Types

Reverse logistics is a system that can be defined in two types. Both are linked to the consumer, product, and manufacturer relationship. It is necessary to establish transparent communication about the importance of reverse logistics for everyone. Learn more about both types:

  • after-sales reverse logistics. After-sales reverse logistics work to handle the product returning to the production chain. Usually, these are products that reached the consumer’s hand, but, for some reason, were returned. The reasons are diverse, it can be by default, some error in the processing of the order, expired validity, etc. In this case, the company will receive this product to analyze what the next steps will be.
  • post-consumer reverse logistics. Post-sales reverse logistics is concerned with the product that has ended its life cycle with the consumer. That is, it was purchased, used, and is already going through the disposal stage. Normally, this product is considered unsuitable for primary consumption, meaning that it cannot be sold as new. In this case, the analysis by the company will be important to define how the product will be disposed of.

In both types of reverse logistics, the company responsible for the product must organize itself to receive the products and redirect them.

Does my company need reverse logistics?

Your company needs reverse logistics, first because it is provided for by law. Therefore, your company cannot exempt itself from this responsibility with the complete cycle of its product. In addition, it is a change that generates benefits, as well as increases the added value of your brand. Consider some more advantages of reverse logistics.

Advantages

Reverse logistics brings important advantages to the company, in addition to being good for the environment. For example, the action plan for receiving after-sales reverse logistics products provides information about the failures of your products. It is a way to improve internal processes, making quality management adjustments.

In addition, reuse of raw materials tends to cause positive balances in the company’s economy. It is also a way to make a difference in your company, given the current concerns regarding consumption and the environment.

How to implement reverse logistics

To implement reverse logistics, it is necessary to develop a solid waste action plan. From there, your company will have a better picture of the actions needed to collect the products. And the other activities that involve the recycling or reuse of these collected materials.

It is a process that requires attention and time, so do it in stages. Don’t forget to keep in mind that your product needs to show the consumer that it must be disposed of correctly. Reverse logistics is a reverse process, as its name implies. In this way, the consumer must return it to the trader and the trader to the distributor or manufacturer.

Get to know Redda+

Redda+ is an initiative that develops projects in traditional and riverside peoples in the Amazon region. The proposal of Redda+ is to link economic, social and environmental knowledge to help the growth and development of these regions. Showing how nature can be respected, even when it participates in the local economy.

One of the Redda+ projects takes place in Portel, Pará. And, like all projects, it is articulated based on the UN Sustainable Development Goals. In this way, the largest number of proposals for emergencies that cover different areas of activity are added. And, in a way, they are interconnected, helping to improve the whole.

To complete, Redda+ uses REDD (Reducing Emissions from Deforestation and Forest Degradation) mechanisms. Through these mechanisms, Redda+ is committed to offsetting excessive carbon emissions. In addition, it manages to participate in a transparent carbon market that benefits the development of sustainable cities. Click here for details about Redda+.

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