Reverse logistics in fleet management: what it is

Where does reverse logistics fit into fleet management? Do all fleets need it? Here are the essentials you need to know about reverse logistics.

Although it is not widely discussed in fleet management, it is important to know this concept and what it means. We are talking, of course, about reverse logistics. Brazil's National Solid Waste Policy, established in 2010, helped put the topic at the center of companies' environmental obligations.

This was the year when the law presented rules and obligations concerning the return of certain goods and packaging after consumer use, without meaning that the idea of reverse logistics originated then.

The main question we want to address here is: does every transport business need to apply reverse logistics? If you are a fleet manager or have another role in fleet management, have you already faced the need to learn more about the topic?

Here we have gathered some fundamental information on the topic that you need to know.

What is reverse logistics?

This concept gained momentum in Brazilian discussions following the National Solid Waste Policy through Law No. 12.305.

But what is it? What does it do?

Think of it this way: if logistics is the process of taking a product to the customer, then reverse logistics organizes the return journey of the product, packaging or waste after consumer use.

It is a process to reduce waste “production”, as well as raise awareness among people and companies about their role in sustainability and responsibility for product life cycles.

A great example is McDonald's. This fast food chain has branches throughout Brazil, and one of the most popular items ordered in its restaurants is French fries. Oil consumption is therefore quite high.

What happens then? To avoid waste, the trucks that travel routes to deliver products to each branch also collect used oil. The operation sends this oil for analysis and reuses it as fuel in its own trucks.

Why is reverse logistics important?

Beyond sustainability, which is already very important, reverse logistics offers other factors carriers can consider. One is establishing a positive company image.

Presenting the brand as concerned with improving the environment and seeking solutions to reduce the impact of its actions is a way to humanize the company. This is crucial today: customers value companies that try to connect with them creatively.

Likewise, and perhaps of greater interest to you, reverse logistics can lower your costs. How is this possible? If you work with returnable glass containers, for example, they can be returned to the company and reused.

Other types of packaging and products can be dismantled and reused to produce new products.

Although it may seem like a high initial investment, it can pay off and lower costs in your long-term strategy. This requires an efficient reverse logistics plan, with clear responsibilities for returning, sorting and determining the disposition of what comes back into the chain.

What is the manager's role in reverse logistics?

First of all, if you are involved in logistics, it is essential to at least know the concept.

You should understand that any company can implement a reverse logistics strategy, but in Brazil, for some it is mandatory. These include:

• pesticides;
• dry-cell batteries and storage batteries;
• tires;
• lubricating oils (their waste and packaging);
• fluorescent lamps;
• electrical and electronic products and their components.

Does your company fit this list? Then you need to know more than just the concept. You need to understand the entire reverse logistics process and how to apply it to your fleet's freight transport.

If your company is not on the list, that is one less topic to study in depth. But before you stop reading, do you know the correct process for disposing of your fleet's tires? After all, they are included among Brazil's mandatory reverse logistics items.

The responsibility is not entirely yours, but it should not be treated as exclusive to the supplier either. The logic of reverse logistics distributes responsibilities across product life cycles, and systems need to organize the return of products and packaging after consumer use.

In Brazil, your fleet's tire supplier should therefore explain how the old, worn tires you will no longer use will be collected. For the manager, the safest approach is to request this guidance and adjust the fleet's routine to the collection plan provided by the supplier.

If the provider does not address this issue, you should contact them and ask about it. The main point is to avoid improvised disposal: reverse logistics depends on a clear process so that waste follows the correct return path.

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