What is 'reverse logistics'?

Reverse logistics refers to the critical process of moving goods from their final destination back to the manufacturer or another location, primarily for the purpose of reclaiming value or ensuring appropriate disposal. This process can involve returning defective products, recycling materials, or repurposing items that can no longer be sold, thereby minimizing waste and promoting sustainability.

The significance of reverse logistics lies in its ability to help businesses recapture value from unwanted or unused products, reduce overall waste, and enhance their environmental responsibility. By managing the return process effectively, companies can improve their supply chain efficiency and customer satisfaction while also contributing to sustainability efforts.

The other options focus on aspects of logistics and supply chain management that are distinct from reverse logistics. For example, improving supply chain efficiency and delivering products to customers efficiently relates to traditional forward logistics, while forecasting demand pertains to the planning phase rather than the logistics of handling returned or excess products.