Reverse Logistics and Its Economic Benefits - Essay Example

Reverse logistics can bring a lot of gains to the economy in terms of production and delivery of goods. These benefits are seen in terms of a higher rate of production of goods. There are also reduced costs of administration, transportation, and repair of goods. Therefore, the overall delivery to customers is improved, and service is at a high level, maintaining a reliable economy that is sufficient for all people (Dekker, 2010).Through reverse logistics, more value can be gained from returned goods, saving on the required labor force and raw material that would have otherwise been used in the production of similar goods.

Thus, there is room for the creation of more products within the economy, as well as the use of manpower in other relevant areas that need labor.The returned goods in reverse logistics allow for the positive criticism of products and services within an economy (Bonev, 2010). Therefore, more attention is paid to the faulty products and the misled services such that they can be improved. In the event that criticism is taken positively, reverse logistics plays a crucial role in working out economic improvements for overall economic growth and development.