Wikipedia defines supply chain as “A supply chain is a system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer.

1. Importance of Logistics in Supply Chain Process
Wikipedia defines supply chain as “A supply chain is a system of organizations, people, technology, activities,
information, and resources involved in moving a product or service from supplier to customer. Supply chain
activities transform natural resources, raw materials, and components into a finished product that is delivered to
the end customer.” The management of supply chain is referred to as supply chain management. It is nothing but
planning, implementing, and managing the supply chain operations such as sourcing and procurement, conversions
and logistics management as efficiently as possible. The aim of supply chain management is to satisfy customer
demands by using resources, distribution capacity, inventory, and labor skillfully.
Supply chain consists of various phases such as sourcing, procurement, storage of raw materials, production
planning and scheduling, forward and reverse logistics, warehousing, inventory, finished goods, order processing,
customer service or returns management. Of these, logistics is one of the main functions within a company. This is
because logistics involves the movement and storage of materials within a company. For instance, manufacturers
procure raw materials from the suppliers and deliver finished goods to the end customers. Here, logistics takes
care of the movement of goods from original suppliers to the final customers. Wikipedia defines logistics as “the
management of the flow of resources, not only goods, between the point of origin and the point of destination in
order to meet the requirements of customers or corporations. Logistics involves the integration of information,
transportation, inventory, warehousing, material handling, and packaging, and often security.”
Until recently, the role of logistics ended with the delivery of goods to the final customers. Referred to as forward
logistics it is the movement of materials and goods from the point of origin to the point of consumption. However,
today there exists a reverse flow as well. Known as reverse logistics, it starts where the forward logistics ends. It is
“the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-
process inventory, finished goods and related information from the point of consumption to the point of origin….”
The purpose of reverse logistics is to recapture value or facilitate proper disposal and therefore involves activities
such as return to supplier, resell, salvage, recondition, refurbish, remanufacture, reclaim materials, recycle, landfill,
and so on.
Reverse logistics has attained greater significance in the wake of growing interest in carbon footprints. Regulatory
issues have forced companies to make reverse logistics an integral part of their supply chain process.
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