The backward flow of materials and of informations initiates from the customers, at the moment that they return products to the retail store. After that, the choice has to be done on where the objects have to be sent back. At the time of the return, information about the item and its condition may be entered into the retailer’s information system, and forwarded to the returns-processing center. Unfortunately, these informations is often inaccurate.
In some researches, many companies have been found to use centralized return centers and trucks making “milk runs”, that is, always stopping at the same stores in the same order.
The integration of these mechanisms with the forward logistics has been found to be difficult and in some cases where these return centers have been integrated in some distribution centers, personnel was often redirected to work to the “more important” forward logistics at every time the forward distribution experienced high demand.
From a retailer point of view, possible destinations for products are