Reverse logistics - a common definition
Reverse logistics is part of the internal logistics process, which is responsible for the flow of materials or finished goods and the return of packaging that can be reused in the shipping process. By definition, it takes into account the distinctness between storage and warehousing. The differences in these two concepts will be described later in the article. As far as reverse logistics is concerned, examples of such practices can be multiplied and their number increases as the scale of the supported processes grow. Taking as the example global corporations that generate a lot of packaging we make sure that by using Utz containers we manage the waste rationally. During the whole process it is important to mark transport containers precisely, store them intelligently and warehouse products in accordance to FIFO, LIFO or FEFO rules, as well as track the delivery process at every stage of shipment. In terms of returnable logistics, Utz, whose reusable plastic containers are used for both product storage and warehousing , preparation and release for further transport, is an example of efficient operation. The high technological advancement of warehouses makes it a key aspect of the logistics process to label containers and adapt them to automation processes.
Reverse logistics within enterprise environment
It is very important to constantly increase environmental awareness in companies using repeatable intralogistic and transport processes. Reverse logistics in the company is becoming increasingly important, it is in a phase of continuous development and better fit into internal processes and it is difficult to foretell its end. The process of reusing the transport container in the logistics chain and its return to re-circulation saves the planet from pollution and reduces packaging costs. Utz's transport and logistics container series take advantage of the experience of many industries to avoid errors resulting from poor product balance or weight, or finally use the ergonomics of the handles used both in process automation by robots and in manual handling. Utz containers allow you to avoid many errors already at the stage of introduction of the process and match every detail to the customer's process. Reverse logistics and the supply chain within the company play a very important role in the e-commerce sector, which has been growing very intensively recently. The methods of ordering products by the Customer in a just-in-time and just-in-sequence system require efficient organization of the preparation and flow process of products, as well as efficient management of the level of inventory on which the speed of delivery depends. Just-in-time is a method of delivering all the required items on time and in the quantity needed. This prevents waste. Just-in-sequence is an established inventory strategy that delivers goods to a production line or finished product with increased transport requirements - in the correct order, in order to reduce the time of all production or to secure products in transport. Reverse logistics in both cases not only within company but also e-commerce branch plays a very important role and is becoming more and more common.
To understand how the reverse logistics process works, it is necessary to familiarize yourself with two basic concepts - and find differences between the concepts of storage and warehousing. These are, contrary to appearances, completely separate terms, but they have a lot in common, which divides storage and warehousing? Differences may surprise you.
Storage is the act of placing goods in a warehouse, as well as their distribution in the right places and correct marking. It is one of the most common and basic logistics processes. When it comes to storage and warehousing, the difference is in terms of operation. Warehousing is a much more extensive concept, including storage, internal logistics processes, the use of inventory management methods, etc. Storage, in turn, is the adaptation of safekeeping to the needs of the product and its protection against potential risks.
If we were to compare storage and warehousing, the second term is much more capacity. As explained above, stocking is part of the warehouse, which we can define as a comprehensive handling of the goods. The process of warehousing the goods consists of many stages: it is the reception of the goods, their proper storage, sometimes the upgrade of the product in the internal process, and then preparation for shipment: picking and delivery from the warehouse and finally at the very end the stadium of return logistics. Each stage of the warehousing process is equally important and is a separate category in the process. So we can conclude that one of the elements of handling an item is storage, and warehousing is the whole process. The warehousing definition includes activities that are based on handling the entire logistics process, from the receipt of the item to its release for transport.
Examples of reusable container applications from the manufacturer of the Utz group include EUROTEC, RAKO series containers, as well as storage-saving stacking containers, rotary containers or folding plastic container systems.
© Georg Utz Holding AG