Reverse Distribution

Reverse Distribution

Reverse Distribution Jonathan Poland

Reserve distribution is the process of distributing a reserve, which is a reserve amount of money or other resources that are set aside for a specific purpose. This process typically involves identifying the individuals or entities that are eligible to receive a portion of the reserve, and then distributing the reserve among them in accordance with predetermined rules or criteria. The specific purpose of the reserve and the rules for its distribution can vary depending on the context. For example, a reserve may be set aside to provide financial assistance to individuals in need, to fund a particular project or initiative, or to serve as a buffer against potential losses or liabilities.

Returns

The end-to-end process of accepting returns of goods. For example, a fashion company that allows customers to try on clothes at home and return them within a week if they don’t fit.

Recalls

The process of recalling goods that are found to be defective in some way. For example, a bicycle helmet manufacturer that recalls a dangerous helmet due to a design flaw that allows a strap to easily come off in an accident.

Repairs

The handling of repairs that occur under warranty may involve reverse logistics whereby an item is returned to the manufacturer.

Unsold Goods

Distribution partners may have a contractual right to return goods if they are unsold. For example, goods that are on consignment can generally be returned by a retailer.

Damaged Goods

Goods may be returned if distribution partners or consumers determine that they have been damaged.

Excess Inventory

The process of reclaiming inventory simply because it hasn’t sold in a timely fashion. For example, a luxury fashion retailer that doesn’t discount may return unsold product when it goes out of season.

Disposal

The process of disposing of goods in a safe and environmentally friendly way including reuse, recycling and waste disposal best practices.

Extended Producer Responsibility

Laws, regulations and standards that call on a producer to accept goods at end of life to ensure they are properly reused, recycled and disposed. For example, an electric car manufacturer that is required to recycle batteries in a responsible manner when consumers are done with them.

Compliance

In many cases, reverse distribution is subject to a variety of laws that ensure that returned goods don’t become a problem to society. As such, reverse distribution often requires careful accounting, controls and reporting.

Refurbishing & Reconditioning

The process of restoring and testing the quality of goods so that they can be resold. For example, a mobile phone manufacturer that tests, repairs and repackages phones that have been returned so that they can be sold.

Reuse

Goods may be repaired, reconditioned and resold after being returned at end of life. For example, a clothing retailer that accepts clothes when consumers are done with them for resale in the second hand market.

Resale & Liquidation

The process of selling refurbished and reconditioned product. For example, an website that auctions returned product to resellers and/or directly to consumers.

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