Nowadays, reverse logistics is considered one of the key processes in the supply chain. It is known to be important for many reasons, such as economic and ecological factors, social responsibilities, legal regulations, and the preservation of natural resources. Therefore, when asking “What is reverse logistics?”, it is possible to encounter different definitions. It is seen as a process involving returned goods, expired products, and significant costs for manufacturers. Overall, it is understood to have strategic importance.
Reverse logistics was first defined in 1981 by Lambert and Stock. According to their definition, reverse logistics plays a role in stages such as product recycling, resource recovery, and waste disposal. The reverse logistics process generally covers the recycling stages of products. In 2001, according to Fleischmann’s definition, logistics is a process that enables the recovery of value in a way that reverses the traditional supply chain. It includes using the most appropriate disposal methods, storing secondary products, and ensuring efficient flow. It also encompasses planning, implementation, and control processes.
When examining the characteristics of reverse logistics, it extends from the point of consumption of raw materials, semi-finished, and finished products back to the source. In 2005, Dowlatshahi described it as a process of regaining products through recycling practices in a manufacturing facility. The common perception within reverse logistics activities is the physical return of used products from the consumer to the manufacturer. Reverse logistics ensures the recycling of unwanted materials and their reintegration into production, which is why it is also referred to as “responsible logistics.”
Generally, reverse logistics includes all processes aimed at preserving the value of finished products or recycling them. These activities involve collecting data from consumers and returning it to the manufacturer, analyzing product cost and efficiency, and more. At this stage, planning the cost flow of products by consumer companies is highly beneficial and considered one of the biggest advantages of reverse logistics.
Reverse logistics activities address multiple needs of companies and are of great importance to each. It is widely used in various application areas, such as:
Reverse logistics, widely adopted by many companies worldwide, keeps pace with changing technology. With technology, almost every company tends to choose the most economical method for accessing raw materials. Reverse logistics operations globally enable companies to take stronger and more decisive economic steps. They also allow companies to progress with more environmentally friendly practices. Companies demonstrating environmental sensitivity often update their mission through reverse logistics activities.
To speak of reverse logistics success, a company must meet its raw material needs with more cost-effective options. This increases customer purchasing commitment and helps minimize existing risks. Examples of reverse logistics show that companies also engage in social responsibility projects. Being a socially responsible company creates an environmentally friendly image worldwide, which is among the most desired achievements. Research shows that reverse logistics practices help companies take eco-friendly steps. While not mandatory in every sector, it is known to be required in many industries.
There are three main reasons for reverse logistics: ecological, legal, and economic. Laws may require the collection and evaluation of products, as well as their proper disposal. Additionally, reverse logistics is applied to combine the advantages of eco-friendly production and consumption, and to provide economic benefits in resource and material usage. It is possible to say that businesses in Turkey gain many benefits from reverse logistics practices. Reverse logistics activities have become increasingly widespread in Turkey over the past 15 years.
A well-implemented reverse logistics system helps reduce raw material costs for companies. It also minimizes potential risks related to customer purchases. Advantages include shorter response times and fulfilling social responsibility requirements. It continues to stand out by enhancing a company’s eco-friendly image and offering competitive advantages.
The benefits of reverse logistics are numerous. When properly organized within the system, customer satisfaction inevitably increases. Additionally, costs decrease and profitability rises. Reverse logistics plays an important role in situations such as returning a product for repair or sending it to service for a refund. Effectively used reverse logistics activities aim to maximize value recovery through recycling.