ReturnsThe end-to-end process of accepting returns of goods. For example, a fashion ecommerce company that allows customers to try on clothes at home and return them within a week if they don't fit.
RecallsThe process of recalling goods that are found to be defective in some way. For example, a bicycle helmet manufacturer that recalls a dangerous helmet due to a design flaw that allows a strap to easily come off in an accident.
RepairsThe handling of repairs that occur under warranty may involve reverse logistics whereby an item is returned to the manufacturer.
Unsold GoodsDistribution partners may have a contractual right to return goods if they are unsold. For example, goods that are on consignment can generally be returned by a retailer.
Damaged GoodsGoods may be returned if distribution partners or consumers determine that they have been damaged.
Excess InventoryThe process of reclaiming inventory simply because it hasn't sold in a timely fashion. For example, a luxury fashion retailer that doesn't discount may return unsold product when it goes out of season.
DisposalThe process of disposing of goods in a safe and environmentally friendly way including reuse, recycling and waste disposal best practices.
ComplianceIn many cases, reverse distribution is subject to a variety of laws that ensure that returned goods don't become a problem to society. As such, reverse distribution often requires careful accounting, controls and reporting.
Refurbishing & ReconditioningThe process of restoring and testing the quality of goods so that they can be resold. For example, a mobile phone manufacturer that tests, repairs and repackages phones that have been returned so that they can be sold.
ReuseGoods may be repaired, reconditioned and resold after being returned at end of life. For example, a clothing retailer that accepts clothes when consumers are done with them for resale in the second hand market.
Resale & LiquidationThe process of selling refurbished and reconditioned product. For example, an ecommerce site that auctions returned product to resellers and/or directly to consumers.
|Overview: Reverse Distribution|
The process of accepting and processing goods that have been returned from a consumer or distribution partner.
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