"Reverse logistics is an often-neglected aspect of supply chain management. Its importance is highlighted during a product recall - like this year’s peanut butter recall"
In March 2024, the National Consumer Council (NCC) urged consumers to stop consuming and return certain brands of peanut butter to stores due to heightened levels of aflatoxin. A recall like this can be a nightmare for organisations and supply chains. The logistics involved in getting items back from consumers and retailers around the country is an enormous challenge.
Having efficient, tried and tested recall plans and effective reverse logistics programmes in place is essential for manufacturers, retailers and everyone in the end-to-end supply chain.
It can mitigate the potential damage and turmoil associated with a recall, including ensuring the health and safety of consumers, maintaining good relationships with suppliers and customers, preserving brand reputation and retaining the trust of consumers, and reducing the potentially enormous costs associated with a recall.
SAPICS urges all organisations, including manufacturers, retailers and logistics service providers, to examine their reverse logistics plans and skills.
What is reverse logistics?
Reverse logistics encompasses all the activities associated with a returned product or product components that are effectively moving backwards through the supply chain. It includes recalled goods as well as faulty or substandard items and parts of products that are reused or recycled.
Reverse logistics is often forgotten because most companies’ primary focus is on the forward supply chain, or forward logistics, which gets products to market and has the greatest impact on a business’s bottom line. However, organisations ignoring the reverse supply chain and the need for reverse logistics planning and competency do so at their peril.
Recognising the importance of reverse logistics, it is one of the topics that SAPICS covers in our regular skills development and networking events, like the annual SAPICS Conference, the leading event in Africa for supply chain professionals. It is also why SAPICS is an affiliate member of the Reverse Logistics Association (RLA), which helps companies to optimise the reverse logistics process.
The association’s Anthony Goldberg comments: “The subject of reverse logistics is so well covered and understood in the United States and Europe but completely underdeveloped in South Africa. When engaging with logistics, operations, sales and customer service personnel, we are often asked what reverse logistics is.
Do you know that it extends into the realm of sustainability and the circular economy, to address all product that enters the reverse supply chain? The RLA’s global mission is to educate and inform; to bring together manufacturers, retailers and solution providers; and to be the voice of the returns industry.”
Anthony is also the CEO of Antel Solutions, the company that conducted the peanut butter recall on behalf of Pick ‘n Pay.
Comments