Apr 10, 2020

What Is Reverse Logistics

Larry Morgan, CEO of RL Liquidators in this short video explaining what reverse logistics is and what it means for business both small and large.

Reverse Logistics is not a new field, it’s been around for over 20 years, it is, however, a rapidly expanding one.  As of 2019, Reverse Logistics was estimated to be a $415 Billion industry.  Despite its size and growing importance, many still don’t know what it is.  

Logistics, once understood to be the industry that simply moved property from one place to another, has developed two subdivisions; forward logistics and reverse logistics.  Forward logistics relates to moving property from its point of origin, such as the manufacturer, to its point of destination, such as the person or business who ultimately purchased it.  Reverse logistics relates to the movement of property that either never reaches its final destination (overstocks are a great example here, a manufacturer simply made too much of something and now it’s just taking up space in a warehouse somewhere), or reaches its final destination but is later returned (anyone who has ever returned a purchase understands this principle on a very personal level).  In both instances, the product that was moving forward, now has either stopped moving altogether, or is being sent backward through the supply chain.  

For property moving through the forward logistics channels, there is an end in mind and the forward logistics processes move the property toward that end, the person or company that will or has purchased it; otherwise known as the end-user.  For property moving through the reverse logistics channels, there often is no clear end game.  “What do we do with this stuff?” is a very common question among companies small, large and mega.  

A very large segment of the reverse logistics industry focuses on recapturing value from the property generated by reverse logistics processes.  In simpler terms, selling all the stuff companies don’t know what to do with, freeing up both much-needed space and much-needed capital.  RL Liquidators, reverse logistics liquidators, focuses on recapturing that value better than anyone else in the industry.

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