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Forward Thinking on Reverse Logistics

Reverse logistics manages inventory that flows “upstream” —back toward a source—to capture value otherwise lost or under-realized. Often considered the “forgotten stepchild” of supply chain planners (who tend to plan supply chains that deploy forward) poorly managed reverse logistics can be costly, and those costs can be extremely hard to discover.

Rules-driven avoidance management and gate keeping are essential to reducing costs in reverse logistics operations. But even though most ERPs are capable of rules-driven avoidance management and gate keeping reverse logistics, many companies don’t take the time to set ERPs up properly. As a result, mis-labeled, unacceptable, or non-labeled inventory is put-away and lost to possible resale because the ERP is simply unaware that it exists.

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