Article | REF: AG5250 V1

Setting up reverse logistics - Process study

Author: Ruddy SOCHAY

Publication date: October 10, 2003

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7. Possible barriers to the development of reverse logistics

One of the greatest difficulties facing reverse logistics is the distance separating the retailer from the manufacturer [1] . For both, this distance can seem excessive and insurmountable when it comes to setting up reverse logistics.

Retailers can also take advantage of the product returns concept to clear their unsold stock, just before the end-of-year stocktaking, for example.

This creates tension between the two parties. This is when the manufacturer realizes that its sales are not living up to expectations, and often, in this case, reimburses the reseller late. In addition, as we shall see later, once the product has entered the returns process, it must be accelerated as much as possible in order to limit the costs associated with reverse logistics.

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Possible barriers to the development of reverse logistics