Reverse Logistics and Its Economic Benefits – Essay Example
The paper "Reverse Logistics and Its Economic Benefits" is a wonderful example of a professional essay.
Reverse logistics is beneficial in that it allows the return of traded goods to the consumers or the unsold ones back to the manufacturer. As such, it enables the recycling of products and the reassembly of the same. This movement of goods leads to the overall saving of costs for an economy in that it maintains a cycle of products. It also reduces the wastage of trade goods within an economy, bringing about economic, environmental and societal gains.
Reverse logistics can bring a lot of gains to the economy in terms of production and delivery of goods. These benefits are seen in terms of a higher rate of production of goods. There are also reduced costs of administration, transportation, and repair of goods. Therefore, the overall delivery to customers is improved, and service is at a high level, maintaining a reliable economy that is sufficient for all people (Dekker, 2010).
Through the reverse logistics, more value can be gained from returned goods, saving on the required labor force and raw material that would have otherwise been used in the production of similar goods. Thus, there is room for the creation of more products within the economy, as well as the use of manpower in other relevant areas that need labor.
The returned goods in reverse logistics allow for the positive criticism of products and services within an economy (Bonev, 2010). Therefore, more attention is paid to the faulty products and the misled services such that they can be improved on. In the event that criticism is taken positively, the reverse logistics play a crucial role in working out economic improvements for the overall economic growth and development.