Reverse Logistics

What is reverse logistics?

Reverse logistics is the set of activities that are conducted after the sale of a product to recapture value and end the product’s lifecycle. It typically involves returning a product to the manufacturer or distributor or forwarding it on for servicing, refurbishment, or recycling. Reverse logistics is sometimes called aftermarket supply chain, aftermarket logistics, or retrogistics.

The aftermarket processes that a product can undergo in reverse logistics are numerous and include the following:

  • 1. remanufacturing — rebuilding the product with reused, repaired or new parts;
  • 2. refurbishment — resale of a returned product that has been repaired or verified to be in good condition.
  • 3. servicing — a broad category that includes customer service, field service, and product returns, such as issuance of return merchandise authorizations.
  • 4. returns management.
  • 5. recycling and waste management.
  • 6. warranty management
  • 7. warehouse management.


Improving reverse logistics

Like other supply chain management (SCM) processes, reverse logistics can be made more efficient and profitable with better planning, management, and execution, and is a key component of service lifecycle management (SLM).

Reverse logistics can have a significant impact on a company’s bottom line, in good and bad ways. For example, generous return policies can encourage distributors and retailers to order more stock than they expect to sell, which can increase inventory costs for manufacturers. Proper disposal of products can minimize penalties for noncompliance with environmental regulations.

The same SCM and e-commerce technologies involved in moving products to consumers (known as forwarding logistics) are used in reverse logistics, including barcodes and scanners used to track returns, materials handling systems in warehouses, and Electronic Data Interchange (EDI) for transmitting documents between supply chain providers.

SCM and ERP software vendors were initially slow to support reverse logistics, according to some experts, but most sellers now include some reverse logistics features in their suites. A number of niche vendors specialize in it. Third-party logistics providers (3PLs) also offer reverse logistics services.

In a nutshell, each element of the refrigeration unit works together to remove heat from inside the vehicle so that the product being transported can be held at the required temperature.

Refrigerated units in vans differ from standard kitchen fridges in the way that they are powered. Of course, household fridges are typically connected to a mains supply but that’s not practical for a van that’s on the road.

Generally, fridge vans will use a direct drive system with a compressor bolted directly to the side of the vehicle’s engine to power the unit whilst delivering goods. A direct drive system is generally considered an efficient and simple solution however; in some cases, fridge vans can also be powered by a separate mains-driven compressor called a “standby compressor”. A standby allows either pre-cooling of the load space, additional storage, or an onsite storage facility used for example on catering vehicles A standby system is a highly useful feature to make sure that any perishable goods left inside the

Commonly, fridge van temperature settings have a range between 0℃ to 8℃ while a freezer van is more or less consistently at around -18℃. There are three classes: Class A: Refrigerated vans equipped with a cooling system that allows the user to set a storage temperature between +12°C and 0°C inclusive