Reverse Fulfillment

AAA

DEFINITION of 'Reverse Fulfillment'

The portion of the supply chain that moves returned products back from the customer to the manufacturer. Although firms would prefer otherwise, returns are a fact of life for virtually all firms. In some cases, the processing, evaluation and shipping of returned products can be a costly component of doing business. Thus, maximizing the efficiency of reverse fulfillment activities can become very important for profitability.

INVESTOPEDIA EXPLAINS 'Reverse Fulfillment'

Just because a product is returned does not mean that it should be discarded. In many cases, the item may be fully or partially salvageable for later resale. For example, manufacturers may be able to provide minor repairs to some units and sell recertified units for a slight discount or use parts for alternative purposes. Returned units which are too badly damaged can by disassembled, and their unbroken components can be reused in new products.

RELATED TERMS
  1. End To End

    A term used in many business arenas referring to the beginning ...
  2. Value Chain

    A high-level model of how businesses receive raw materials as ...
  3. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  4. Supply Chain Management - SCM

    Supply chain management is the streamlining of a business' supply-side ...
  5. Supply Chain

    The network created amongst different companies producing, handling ...
  6. Service Mark

    A brand name or logo that identifies the provider of a service. ...
Related Articles
  1. Working Capital Works
    Insurance

    Working Capital Works

  2. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  3. Operational Risk: A Must-Know For Investors
    Active Trading Fundamentals

    Operational Risk: A Must-Know For Investors

  4. Understanding Japanese Keiretsu
    Insurance

    Understanding Japanese Keiretsu

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center