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Marketing Channel - Reverse logistics - Essay Example

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According to Günter, 1 reverse logistics is a term that clearly defines the inverse of the flow of goods and services from the manufacturer to the consumer. In other words, it is a collection of all the activities that follow up the selling of merchandise while aiming at…
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Marketing Channel - Reverse logistics
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implementation and management of proficient, cost effective streaming of raw materials in process catalog, finished products and other information reversing from the consumers point back to the origin. This topic may as well include remanufacturing and renewing. Remanufacturing involves manufacturing of products that the company had manufactured while renewal involves renovation of already manufactured goods. It encompasses the sale of superfluous goods, other paraphernalia and machines that customers return to the manufacturer, and leasing businesses because of different reasons.

Talking of logistics, we refer to the events surrounding the movement of goods from the producer to the consumer and reverse takes the goods at least a step or more backwards the supply chain.1 A manufacturer may produce a product which, through a supply chain, moves through the distributor to the consumer. Any other process after the sale of the product is reverse logistics; if the product is substandard of defective, then the customer would certainly return it. This would mean that a manufacturer has to incur shipping expenses to fetch the product, test the product, 2possibly dismantle the product, repair, recycle or even dispose the product.

This means that the product reverses the chain of supply network for manufacturers to gain any use from the defective product. This has effects on the market and the overall business enterprise since most retailers consider products that their customers return as personally dislodged deals. The retailers have the main challenge in processing the returns at an expertise level for faster, proficient and money-making collection and return of the product3. The probability of product returns depends on the consumer requirements which end up aiding high service standards including accuracy and timeliness.

Retailers can address all the operational and customer base retention issues in regards to merchandise returns through following the best

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