Reverse logistics

[6] The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business.

Customer requirements facilitate demand for a high standard of service that includes accuracy and timeliness.

[11] Because of the connection between reverse logistics and customer retention, it has become a key component within Service Lifecycle Management (SLM), a business strategy aimed at retaining customers by bundling even more coordination of a company's services data together to achieve greater efficiency in its operations.

The broad nature of its cross-functional impact suggests that firms would benefit by improving internal integration efforts.

In particular, a firm's ability to react to and plan for the influence of external factors on the returns management process is improved by such internal integration.

Panjehfouladgaran and Lim (2020) addressed this gap by publishing a paper specifically focused on Reverse Logistics Risk Management (RLRM).

[16] Third-party logistics providers see that up to 7 percent of an enterprise's gross sales are captured by return costs.

[citation needed] December is traditionally the busiest month for reverse logistics in the United States, with UPS processing over 1 million returned packages daily through Christmas.

The downstream member in the supply chain might exploit the situation by ordering more stock than is required and returning large volumes.

In this way, the downstream partner is able to offer high level of service without carrying the risks associated with large inventories.