What is meant by 'reverse logistics'?

Reverse logistics refers to the process of managing the return of goods from the end customer back to the supplier or manufacturer. This process is vital for handling returns, recycling, refurbishing, or disposing of products once they reach the consumer. The importance of reverse logistics lies in its ability to effectively manage these returned products in a way that minimizes costs while maximizing customer satisfaction and sustainability.

In practice, reverse logistics encompasses various operations such as return processing, inventory management of returned items, and ensuring compliance with regulations regarding product disposal. This can also include the refurbishment of returned items, thereby allowing companies to recapture value from products that might otherwise be seen as waste.

In contrast, the other choices are focused on different aspects of logistics operations that do not pertain to the return of goods. For example, expanding a product line relates to marketing strategy rather than logistics, while distribution of products to stores pertains to forward logistics. Consolidation of inventory typically involves optimizing storage and distribution within a supply chain, not the returns process.