My Account Differences between Reverse and Forward Logistics
A summary of the differences between the two directions of the flow can be seen in Table 1.
The reverse logistics flow is initiated from the customers and is therefore very difficult to predict. However, general trends can be observed in that a reverse logistics flow has a tendency to follow trends in forward flows albeit with some form of lag. Examples of this would include sales and promotions which could be followed by an influx of returned product.
| Forward Logistics | Reverse Logistics |
|---|---|
| Forecasting is relatively straightforward | Forecasting can be difficult |
| Uniform product quality | Product quality may not be uniform |
| Uniform product packaging | Packaging may not be uniform |
| Has a clear destination or route | Destination or routing may be unclear |
| Relatively uniform pricing | Pricing is dependent on many factors |
| Speed of delivery is important | Consideration not always given to the priority |
| Forward distribution costs are closely monitored by accounting systems | Reverse costs are less directly visible |
| Inventory management is consistent | Inventory management is not consistent |
| Lifecycle of the product can be managed | More complex product lifecycle |
| Negotiation between parties is straightforward | Negotiation complicated by additional considerations |
| Marketing methods are well known | Marketing complicated by several factors |
| Real time information is readily available to track products | Process visibility is less visible |