8. Resources needed to set up reverse logistics
Reverse logistics begins with the design of the product, which is then dismantled, recycled, recovered, destroyed, etc., and ends with its final destination.
On the other hand, it's between the time the product is sold and the time it's returned that you need to be able to predict how much of it is likely to enter the return channel.
Lexmark (printing products) took up this challenge by estimating (using its sales file) the volumes of products that will reach end-of-life each year. We then extrapolated the number of end-of-life products that would actually enter a return channel.
This phase of sorting the products (gatekeeping) that are to enter the channel is very important. Some companies have a zero-returns policy, while others take advantage of returns...
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Resources needed to set up reverse logistics
How do you recover the value of secondary assets in the return chain?
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