Reverse Logistics
Mexico as a “Reverse Logistics Hub” in North America
There is a term that is not known to many people, except if you are in the logistics business, this term is “Reverse Logistics”.
What is reverse logistics?
The normal logistic or forward logistics of any product goes from raw materials, to components, and finally to assembly. Well reverse logistic is the system by, for different section of the value chain, the inventory, defective, or scrap can be reused, remanufactured or disposed properly.
In other words, reverse logistic goes from the very consumer to the first raw materials' manufacturer.
Nevertheless, the term is relatively new. Such activity has been around or performed by some industries for the past 100 years, but it is recognized that the term “Reverse Logistics“ was first coined by James R. Stock in 1992. That is why it seems new for many people. Before 1992, there were terms such as Repair, Recycling, Reclamation, Salvage, and Reuse to describe the actions by which some industries recaptured products that did not fit into the value chain.
Now, why do I comment on this term or activity? Well, the reason is that, with the advancements of e-commerce, there is more activity for reverse logistic in many more industries than before. Think about the millions of garments, shoes, electronics, and many other products being sold through the internet these days, and then think about what happens if you decide not to use it, or if the product was not the one you wanted. Then you return it and it enters a reverse logistic system that the seller has in place.
The issue here is that for most products, the forward logistics and production systems are highly automated, but in reverse logistic, the activity requires more human labor. Humans are needed to inspect, evaluate, check, decide how to repair, clean, repack, etc. Then there is the issue of how the product will be reintroduced into the market, either as salvage, repaired, overhauled, or clean & repackaged items.
This activity is labor-intensive, and for the case of North America, there is one country that can provide the labor cost necessary to make this reverse logistic: Mexico!
Onilog has the knowledge, Mexican permits, and professional people to perform this activity in a timely manner, with a cost advantage to make your reverse logistic system a success story.
