The traditional product cycle ends when the end customer makes their purchase. However, now, the product’s life cycle has been expanded to include dissolution of the product after the end user has extracted its maximum use or value. Logistics, either forward or reverse, can have a significant impact on the asset recovery of business. There are several reasons why reverse logistics are vital. Reverse logistics are the means to having an efficient supply chain and, therefore, efficient asset recovery. Here are a few reasons why reverse logistics are so crucial to business:

  1. Reverse logistics provide a way to extract the maximum value from products at the end of their life cycle. This includes the ideas of recycling where possible, repairing when it is plausible, among other ideas to extend the product’s lifecycle.
  1. Reverse logistics serves as a function of asset recovery by decreasing expenses of returned products. These expenses include warranty expenses and shipping expenses of returning the product to the manufacturer. This could also include the refunds on defective merchandise.
  1. Reverse logistics also serves a branch of asset recovery by decreasing disposal costs of obsolete products. Parts and merchandise can be returned to the original manufacturer to have as much value extracted from them as possible before disposing of the parts that are no longer beneficiary.
  1. Reverse logistics is a branch of asset recovery also by increasing customer loyalty. When a company focuses more attention on the returned merchandise to figure out what the original problem was, customers will have a better experience.
  1. When a machine or piece of equipment reaches the end of its useful life, business owners can achieve a second return on investment. This is another way that asset recovery proves to be useful for business. If the business owner can sell the piece of equipment, he stands to gain a second return on investment.
  1. With all of the rhetoric and discussion and re-using and recycling of machinery, equipment, and other business materials, it shows that a company is conscious of the environment. A company that is environmentally conscious will gain favorable attention from the public. This is another way that asset recovery manifests in the idea of reverse logistics.
  1. The trend of reusing and recycling is gaining momentum. This will encourage new forms of competition within the industry. This increased competition will most likely lead to increased sales.

3. One industry with a high turnaround of items that were being discarded before awareness of proper disposal was electronics. When electronics started being reused and recycled this leads to a decreased risk of a data breach on these obsolete devices.

2.  Implementing a strategy of reverse logistics will drastically improve the operations of business. It will improve every step of the supply chain which will have a rippling effect on the rest of the business.

1. The most important reason to adapt strategies of reverse logistics is because of its profitability. All of these other aspects of asset recovery lead to the same place; decreased expenses and increased revenues.

About AER Worldwide

AER Worldwide mitigates risk and provides global solution to handle your entire end-of-life materials management needs. We provide eco-friendly solutions and services throughout the entire IT product life cycle. Our Reverse Logistics efforts, or “aftermarket” services, help organizations after the initial sale and provide IT asset disposition support throughout the life of the equipment. With global locations, AER Worldwide will provide eco-friendly services, with certified brand protection techniques. To learn more about AER Worldwide, visit