Reverse logistics and its financial impact: Evaluating how product returns and recycling affect a company's financial results.
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Abstract
Reverse logistics refers to the set of processes involved in returning products from the end consumer to the manufacturer or distributor, for the purposes of return, repair, recycling, reuse, or final disposal. This logistics approach has gained increasing relevance in a business context where consumers demand greater environmental responsibility from companies, and where environmental regulations impose stricter regulations on waste management and sustainability. Unlike traditional logistics, which focuses on delivering products to the market, reverse logistics is oriented toward the use and optimization of already distributed products, which can generate both operational challenges and strategic opportunities for companies. From a financial perspective, reverse logistics has a significant impact on organizations' economic results. On the one hand, it involves costs associated with the collection, transportation, classification, and processing of returned products, as well as the reconfiguration of infrastructures and information systems that allow for the efficient management of these flows. In turn, inadequate returns management can impact profitability due to losses from product deterioration, additional storage or disposal costs, and customer service expenses. However, if implemented correctly, reverse logistics can become a source of competitive advantage and financial savings. Recycling and reusing materials reduce production costs by reducing the need for new inputs, while reselling reconditioned products can open up new revenue streams and improve brand perception among consumers. This is a qualitative study with a bibliographic focus.
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