Difference Between Forward And Reverse Logistics In Retail Environment


What Is Forward Logistics?

Forward logistics entails the flow of products from a manufacturing plant to the consumer. The different types of forward supply chain management include direct order fulfillment, hub services, pick-and-pack services and shipping. Forward logistics are used to manage the forward movement of goods from raw materials to the consumer. Value is added to the product as it passes through each step along the chain to the end user.

What Is Reverse Logistics?

Reverse logistics entails recapturing the value of products, parts and materials that have been returned from the end user consumer in order to get them back into the marketplace as quickly as possible. Reverse logistics management usually involves returns recalls, repairs and refurbishment, repackaging for restock or resale, recycling and disposal. By optimizing logistics processes, companies can experience long-term benefits and reduce the percentage for their revenues spent on returns. If the reverse supply chain process is streamlined, businesses can maximize asset recovery rates and reduce costs.  

Also Read: Difference Between Inbound And Outbound Logistics

Difference Between Forward And Reverse Logistics In Tabular Form

Forecasting In forward logistics, forecasting is relatively simple and straight forward. In reverse logistics, forecasting is relatively complex.
Distribution Points There is one-to-many distribution points. There is one-to-many distribution points.
Uniformity of Product Quality There is uniformity in the quality of the product. There is lack of uniformity in product quality.
Product Packaging Product packaging in forward logistics is uniform and in order. Product packaging in reverse logistics often damaged or mostly in poor condition.
Destination/Routing In forward logistics, destination routing is very clear. In reverse logistics, destination routing is unclear.
Pricing Pricing is relatively uniform. Pricing depends on several factors.
Speed Speed is often one major factor that is taken into consideration. Speed is often not considered a priority.
Forward Distribution Costs Forward distribution costs are usually visible. Reverse costs are directly less visible.
Inventory Management Inventory management is consistent. Inventory management is not consistent.
Negotiation Negotiation between parties is straight forward. Negotiation between parties complicated by several factors.
Marketing Method Marketing methods are well known. Marketing methods are somehow complicated.
Process Visibility Visibility of process more transparent. Visibility of process less transparent.