What Is Reverse Logistics Inventory

In this video we will be answering the common question: what is reverse logistics inventory? In short, reverse logistics inventory is any inventory that fails to reach the consumer, or is returned after reaching them. One of the most common examples of reverse logistics inventory are overstocks. These can come from retailers if they’ve purchased more inventory thanthey were able to sell in a given time frame, often referred to as close outs, and they can come from manufacturers if they’ve produced more inventory than they were able to distribute, often called over runs. Most reverse logistics inventory is an overstock of some sort or another. Of course, that’s not the only category of reverse logistics inventory, there are also warehouse damaged items, which are items the retailer no longer wishes to sell due to damage to either the packaging or the item itself. They could also be perishable items that are nearing or have past their best buy or sell by dates, and of course returns, which are items customers have purchased and then returned. Another common category of reverse logistics inventory that is often overlooked is undeliverables. This is inventory that was shipped but for whatever reason was not able to be delivered to its destination. Undeliverables can be individual items or truckloads of inventory and can often be found clogging up freight companies.