The reverse logistics process in an organization consists of primarily two aspects;
returning a product and returning packaging to the point of origin or manufacture (Rogers
and Tibben-Lembke 2001). Studies have shown that products are either returned to the
point of distribution or manufacturing to deal with the end of life of the product for
refurbishment, recycling, or disposal (Andel 1997; Carter and Ellram 1998; Blumberg
1999; Rogers and Tibben-Lembke 2001; De Brito and Dekker 2003)The reverse logistics process in an organization consists of primarily two aspects;
returning a product and returning packaging to the point of origin or manufacture (Rogers
and Tibben-Lembke 2001). Studies have shown that products are either returned to the
point of distribution or manufacturing to deal with the end of life of the product for
refurbishment, recycling, or disposal (Andel 1997; Carter and Ellram 1998; Blumberg
1999; Rogers and Tibben-Lembke 2001; De Brito and Dekker 2003). Another factor of
the reverse logistics process is that it is nearly always part of a closed-loop system. In
this type of system, product or packaging flows outbound to a customer and the same
assets flow in the reverse channel, usually in an altered state or condition (Jayaraman and
Guide Jr 1999; De Brito and Dekker 2003).
Firms realize that the reverse channel is a target for gains in efficiency and
reduction of costs. Businesses have started to focus on the reverse channel and started
operating it as a value added center and using their reverse process as a differentiator
(Stock 2001). This differentiation should allow them to gain/maintain market share, add
revenue, and possibly reduce transportation and inventory costs through the continual
monitoring and gained efficiencies of their reverse logistics process (Daugherty, Myers et
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al. 2002). This increased focus on the reverse logistics process has started moving
organizations beyond just customer service with the timely delivery of a product, but to
total customer satisfaction; moving beyond the initial transaction to ensuring thecustomer’s needs are cared for if the product needs returned or exchanged (Mason 2002).