{"id":7835,"date":"2019-10-15T19:10:11","date_gmt":"2019-10-15T19:10:11","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/amazon-fulfillment\/reverse-logistics-glossary\/"},"modified":"2021-05-25T08:04:26","modified_gmt":"2021-05-25T15:04:26","slug":"reverse-logistics-glossary","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/fulfillment\/reverse-logistics-glossary\/","title":{"rendered":"Reverse Logistics Glossary"},"content":{"rendered":"

Click here to learn more about DCL\u2019s turnkey reverse logistics services<\/span><\/a><\/em><\/p>\n

Reverse Logistics<\/a><\/span>, also known as returns management is an integral part to any ecommerce fulfillment operation. It includes all of the necessary actions that are involved products moving from the end customer back to their origination point (either the direct manufacturer or a third-party logistics provider(3PL)<\/a><\/span> that handles their order fulfillment). It is a necessary part of order fulfillment, since returns due to damage, inaccuracies, and buyer\u2019s remorse require the disposal or reintegration of returned products. Reverse logistics may involve varying levels of planning, implementation, and control of goods as they are shipped back to the fulfillment center and navigate the supply chain to the appropriate application. Simply put, reverse logistics is the process of moving materials back from their consumer destination to their point of manufacture or the fulfillment center in order to recapture their value for re-distribution, or dispose of them properly.<\/p>\n

There are many terms, both common and uncommon that are involved in reverse logistics. In this post we help explain what each of them means, and the role that they play in the reverse logistics process.<\/p>\n

Reverse Logistics from A to Z<\/h2>\n

\u201cA\u201d Channel<\/strong><\/b>\u00a0\u2014 This is the primary, most important sales channel.<\/p>\n

Advanced Ship Notifications (ASN)<\/strong><\/b>\u00a0\u2014 A system that tracks the product through the distribution and shipping process, alerting users to important tracking data such as delivery status and method of transportation.<\/p>\n

Asset Recovery<\/strong><\/b>\u00a0\u2014 Maximizing returns and minimizing costs or liabilities by efficiently classifying and disbursing products or assets that fall under surplus, scrap, excess, obsolete and waste status.<\/p>\n

\u201cB\u201d Channel<\/strong><\/b>\u00a0\u2014 The secondary sales channel for materials and products that have previously been processed through the reverse flow.<\/p>\n

Barter Companies<\/strong><\/b>\u00a0\u2014 Establishments that support the disposal or recycling of unwanted goods in trade for commodities (i.e. airline miles or advertising space).<\/p>\n

Brokers<\/strong><\/b>\u00a0\u2014 Firms that specialize in products that have reached the end of their sales life, who are often willing to purchase any product in any condition if they are given a low enough price (typically a last-resort option for disposal of goods).<\/p>\n

Brown Goods<\/strong><\/b>\u00a0\u2014 Electronics.<\/p>\n

Buy-Out<\/strong><\/b>\u00a0\u2014 The term for when a manufacturer buys out the inventory of another via a retailer, which allows the manufacturer purchasing the inventory to replace the products of their competitor.<\/p>\n

Cannibalization of Demand<\/strong><\/b>\u00a0\u2014 When the sales of the secondary market or \u201cB\u201d channel reduce the sales in the primary or \u201cA\u201d channel.<\/p>\n

Cannibalization of Parts<\/strong><\/b>\u00a0\u2014 Removing parts or components from one item and using them to refurbish or rebuild another item.<\/p>\n

Centralized Return Center (CRC)<\/strong><\/b>\u00a0\u2014 The facility where returns are processed.<\/p>\n

Chargeback<\/strong><\/b>\u00a0\u2014 A deduction from a vendor\u2019s invoice for the amount of product returns, which may happen without the vendor\u2019s authorization.<\/p>\n

Close-Out Liquidators<\/strong><\/b>\u00a0\u2014 Companies that specialize in buying out a retailer\u2019s product within a particular area when the retailer has decided to remove themselves from that area of business.<\/p>\n

Controlled Tip<\/strong><\/b>\u00a0\u2014 A landfill that is sanitary because waste is sealed into containers made from clay or dirt.<\/p>\n

Core<\/strong><\/b>\u00a0\u2014 A reusable part or sub-assembly that is of high value because it can be remanufactured and\/or used as a replacement part.<\/p>\n

Core Charge<\/strong><\/b>\u00a0\u2014 The amount that a supplier charges on products that can be remanufactured in order to encourage the return of the defective item that is being replaced.<\/p>\n

Design for Disassembly (DFD)<\/strong><\/b>\u00a0\u2014 A method of design intended to make the end-of-life disassembly of a product more easy.<\/p>\n

Design for Logistics (DFL)<\/strong><\/b>\u00a0\u2014 Product design with logistics functionality in mind, considering the processes for handling, shipping and storing the product.<\/p>\n

Design for Manufacturing (DFM)<\/strong><\/b>\u00a0\u2014 Considering the ease, cost-effectiveness, and quality of the manufacturing process when designing a product.<\/p>\n

Design for Reverse Logistics (DFRL)<\/strong><\/b>\u00a0\u2014 Ensuring improved return flow functionality by designing requirements for effective reverse logistics into the packaging and product itself.<\/p>\n

Disposition<\/strong><\/b>\u2014 The method of disposal for a product.<\/p>\n

Disposition Cycle Time<\/strong><\/b>\u00a0\u2014 The window of time between an item\u2019s return to the point when it arrives at its final destination.<\/p>\n

Duales System Deutschland (DSD)<\/strong><\/b>\u00a0\u2014 A German organization that collects and recycles consumer packaging.<\/p>\n

Electronic Data Interchange (EDI)<\/strong><\/b>\u00a0\u2014 An electronic system of communication for business-to-business transactions.<\/p>\n

Extended Producer Responsibility (EPR)<\/strong><\/b>\u00a0\u2014 When an item\u2019s original manufacturer is required to carry responsibility for its proper disposal.<\/p>\n

Factory-Renewed<\/strong><\/b>\u00a0\u2014 The classification for products that have been refurbished by the original manufacturer with a new-product warranty.<\/p>\n

Footprint<\/strong><\/b>\u00a0\u2014 The size of a building in square feet, which determines the warehousing space a store will need.<\/p>\n

Gatekeeping<\/strong><\/b>\u00a0\u2014 Screening of products before they enter the reverse flow of the supply chain in order to minimize necessary returns or eliminate unnecessary ones.<\/p>\n

Gray Market<\/strong><\/b>\u00a0\u2014 Unauthorized channels or dealers of products that typically don\u2019t carry a manufacturer\u2019s warranty.<\/p>\n

Green Dot<\/strong><\/b>\u00a0\u2014 A packaging symbol for products sold in Germany to indicate that the item can be recycled via the Duales System Deutschland.<\/p>\n

Green Logistics<\/strong><\/b>\u00a0\u2014 Logistics that minimize and\/or measure their activities for environmental impact.<\/p>\n

High Learning Products<\/strong><\/b>\u00a0\u2014 Products that cannot be operated without prior education or instruction, such as electronics.<\/p>\n

Insurance Liquidators<\/strong><\/b>\u00a0\u2014 Companies in the secondary market that specialize in buying products that were damaged in shipment and subsequently declared under losses for insurance purposes.<\/p>\n

Investment Recovery<\/strong><\/b>\u00a0\u2014 See Asset Recovery.<\/p>\n

Irregular<\/strong><\/b>\u00a0\u2014 Materials or products that are sub-standard for the qualifications of a first-quality item, sometimes for cosmetic reasons that don\u2019t affect the baseline requirements for performance.<\/p>\n

Job-Out Liquidators<\/strong><\/b>\u00a0\u2014 Companies in the secondary marketplace that buy end-of-season or excess inventory products from retailers.<\/p>\n

Liquidator<\/strong><\/b>\u00a0\u2014 Secondary market businesses that purchase product at the end of its \u201cA\u201d channel sales life.<\/p>\n

Lift<\/strong><\/b>\u00a0\u2014 See Buy-Out, above.<\/p>\n

Logistics<\/strong><\/b>\u00a0\u2014 The process of moving raw materials, finished goods, or product inventory from the point of origin to consumption to meet consumer demand. Efficiency and cost-effectiveness is the goal with strategic logistics planning, implementation and control.<\/p>\n

Made-For-Outlet<\/strong><\/b>\u00a0\u2014 Products that are specifically made for sale at discount and outlet stores, which are typically of a slightly lower quality than products in the \u201cA\u201d channel.<\/p>\n

Marketing Returns<\/strong><\/b>\u00a0\u2014 Unsold product that a retailer is able to return to the supplier (generally overstock items), which may have been shipped to the retailer under an agreement that sales were guaranteed.<\/p>\n

Non-Defective Defectives<\/strong><\/b>\u00a0\u2014 Products that are returned under a customer claim of defectiveness, when they are not actually defective but the customer was unable to operate the products properly.<\/p>\n

Non-Defective Returns<\/strong><\/b>\u00a0\u2014 Non-defective items that a customer returns as defective.<\/p>\n

Outlet Sales<\/strong><\/b>\u00a0\u2014 Products \u2013 typically off-season or irregular \u2013 that are sold at an \u2018outlet\u2019 store.<\/p>\n

Overstock<\/strong><\/b>\u00a0\u2014 Additional inventory beyond demand, which is usually caused by a failure to sell as expected, excessive ordering, or order cancellations.<\/p>\n

Point of Sale (POS)<\/strong><\/b>\u00a0\u2014 The point in the transaction where the customer gains ownership of the product being sold.<\/p>\n

Point of Sale Registration<\/strong><\/b>\u00a0\u2014 The process of collecting the customer\u2019s information when the product is sold, in order to retain it for warranty purposes.<\/p>\n

Partial Returns Credit<\/strong><\/b>\u00a0\u2014 Providing a partial refund due to missing components.<\/p>\n

Prebate<\/strong><\/b>\u00a0\u2014 A discounted purchase price provided on the promise that it won\u2019t be sold to a re-manufacturer at the end of its life, or a customer discount given at the time of purchase in compensation for returning the product once it reaches the end of its life.<\/p>\n

Pre-selling<\/strong><\/b>\u00a0\u2014 Contracting during or before the selling season with a job-out company who will purchase any excess product remaining at the end of the selling season.<\/p>\n

Primary Packaging<\/strong><\/b>\u00a0\u2014 The main, first level of packaging for a product, such as a bottle containing wine or a tube of toothpaste.<\/p>\n

Producer Pays<\/strong><\/b>\u00a0\u2014 A principle that puts the responsibility of proper disposal or recycling of an end-of-life product on the manufacturer.<\/p>\n

Reclaim Materials<\/strong><\/b>\u00a0\u2014 See Recycling, below.<\/p>\n

Reclamation Centers<\/strong><\/b>\u00a0\u2014 Facilities that are designated to process returns (this term is typically used in the grocery industry).<\/p>\n

Reconditioning<\/strong><\/b>\u00a0\u2014 Cleaning and repairing a product to \u201clike new\u201d state.<\/p>\n

Recycling<\/strong><\/b>\u00a0\u2014 Reducing a product to its basic elements in order to reuse them.<\/p>\n

Refurbishing<\/strong><\/b>\u00a0\u2014 Reconditioning to a greater level of detail, with more in-depth repairs to bring a product to \u201clike new\u201d condition.<\/p>\n

Remanufacturing<\/strong><\/b>\u00a0\u2014 The third level of updating a product to \u201clike new\u201d condition, with more extensive work that often involves disassembling the product to conduct more detailed repairs and reconditioning.<\/p>\n

Re-Returns<\/strong><\/b>\u00a0\u2014 When a customer attempts to return a product they had purchased as a (discounted) returned item for full price.<\/p>\n

Resell<\/strong><\/b>\u00a0\u2014 When a returned product can be sold again, sometimes as new.<\/p>\n

Restocking Fee<\/strong><\/b>\u00a0\u2014 A charge billed to the customer in acceptance of their returned product.<\/p>\n

Return Abuse<\/strong><\/b>\u00a0\u2014 When customers engage in fraudulent actions involving the return of their product, for example attempting to return a product at a different chain from the original purchase, trying to get a refund amount higher than the price they paid for the item, or returning the item for a refund after the warranty has expired.<\/p>\n

Returnable or Reusable Tote<\/strong><\/b>\u00a0\u2014 Packaging used in transport of an item or items that may be reused multiple times to move goods within or between facilities.<\/p>\n

Return Authorization (RA) or Return Material Allowance (RMA)<\/strong><\/b>\u00a0\u2014 The clearance to return an item to the original supplier.<\/p>\n

Returns<\/strong><\/b>\u00a0\u2014 Products or goods that a customer decides to send back to the distributor for a refund because the items either fail to perform or do not meet the customer\u2019s needs.<\/p>\n

Returns Allowance<\/strong><\/b>\u00a0\u2014 The limited amount of product that a customer may return, which is typically based on a percentage of their total purchases.<\/p>\n

Returns Center<\/strong><\/b>\u00a0\u2014 See Centralized Return Center.<\/p>\n

Return to Supplier or Return to Vendor<\/strong><\/b>\u00a0\u2014 Sending customer returns or damaged materials back to the vendor or supplier from whom they were originally purchased.<\/p>\n

Reuse<\/strong><\/b>\u00a0\u2014 The act of using a product again for a somewhat different purpose than the one it was designed to perform.<\/p>\n

Reverse Distribution<\/strong><\/b>\u00a0\u2014 The logistical process of moving products or materials backward from the consumer or retail level to the manufacturer or supplier.<\/p>\n

Reverse Logistics<\/strong><\/b>\u00a0\u2014 The process of moving goods or materials from the consumer back to the point of origin in order to recapture value or dispose of it properly. Reverse logistics may include planning, implementation, and control of the process flow in order to ensure efficiency and cost-effectiveness.<\/p>\n

Radio Frequency Identification (RFID)<\/strong><\/b>\u00a0\u2014 A technology that supports product tracking by way of a low-frequency radio signal broadcast from a tag, which is attached to each item as it navigates the distribution cycle.<\/p>\n

Return Material Authorization (RMA)<\/strong><\/b>\u00a0\u2014 The classification of permission for returning a product or material to its supplier.<\/p>\n

Rotatable Parts<\/strong><\/b>\u00a0\u2014 A closed loop system for handling products that can be repaired, such as when a customer returns a broken product and a repaired product is sent to replace it, and the customer\u2019s broken product is then repaired to be sent to another customer.<\/p>\n

Salvage<\/strong><\/b>\u00a0\u2014 Products that can only be sold to a low-revenue customer or a broker.<\/p>\n

Secondary Market<\/strong><\/b>\u00a0\u2013 A group of companies that sell products once they have completed their \u201cA\u201d channel selling season.<\/p>\n

Secondary Packaging<\/strong><\/b>\u00a0\u2014 The level of packaging beyond Primary Packaging, such as a box or case containing wine bottles or a box containing a tube of toothpaste.<\/p>\n

Secure Disposal<\/strong><\/b>\u00a0\u2014 Ensuring the destruction of a product by requiring that the disposal process be supervised by a security guard.<\/p>\n

Secure Returns<\/strong><\/b>\u00a0\u2014 A process of reverse logistics that minimizes product leakage, eliminates shrinkage and stops products from unintentional disposal.<\/p>\n

Source Reduction<\/strong><\/b>\u00a0\u2014 Minimizing resource consumption at the source, or the original production facility.<\/p>\n

Supply Chain Position<\/strong><\/b>\u00a0\u2014 The role within the supply chain that an organization fulfills, such as the distributor, manufacturer, wholesaler, retailer, or a combination of different roles.<\/p>\n

Take-Back<\/strong><\/b>\u00a0\u2014 A requirement that the manufacturer collects products at the end of their sellable life in order to retrieve recyclable materials and dispose of the products appropriately.<\/p>\n

Transport Packaging<\/strong><\/b>\u00a0\u2014 The external, final layer of packaging that is used to protect products in transport between the manufacturer and distributor or retailer.<\/p>\n

Two-Dimensional Bar Coding<\/strong><\/b>\u00a0\u2014 A technology in bar coding that stores much more information than a single row of lines and instead storing it in a two-dimensional grid of dots.<\/p>\n

White Goods<\/strong><\/b>\u00a0\u2014 Appliances for the home, like refrigerators, washers or dryers.<\/p>\n

Zero Returns<\/strong><\/b>\u00a0\u2014 When returns are always either disposed of by a retailer or other third party in the field, instead of coming back to the manufacturer.<\/p>\n

 <\/p>\n

Send us a note<\/a><\/span>\u00a0to connect about how DCL Logistics can help your company. You can read\u00a0DCL\u2019s list of services<\/a><\/span>\u00a0to learn more, or check out\u00a0the many companies we work with<\/a><\/span>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Click here to learn more about DCL\u2019s turnkey reverse logistics services Reverse Logistics, also known as returns management is an integral part to any ecommerce fulfillment operation. It includes all of the necessary actions that are involved products moving from the end customer back to their origination point (either the direct manufacturer or a third-party […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20],"tags":[59,54],"class_list":["post-7835","post","type-post","status-publish","format-standard","hentry","category-fulfillment","tag-glossary","tag-reverse-logistics"],"acf":[],"yoast_head":"\nGlossary of Common Reverse Logistics Terms - DCL Logistics<\/title>\n<meta name=\"description\" content=\"Returns management 101: How your third-party logistics provider should manage order fulfillment & RMA. The most common reverse logistics terms defined.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Glossary of Common Reverse Logistics Terms - DCL Logistics\" \/>\n<meta property=\"og:description\" content=\"Returns management 101: How your third-party logistics provider should manage order fulfillment & RMA. 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