Asset recovery is the classification and disposition of returned goods, surplus, obsolete, scrap, waste and excess material products, and other assets. It tries to maximize returns to the owner, while minimizing costs and liabilities for the dispositions.
The objective of asset recovery is to recover as much of the economic (and ecological) value as is possible, thus reducing the final quantities of waste.
This can be a good cash generating opportunity for companies who can sell these goods that would be otherwise end up in landfills.
Negotiation
Negotiation is a key element for all parties of the reverse logistics process. Because of the inherent lack of expertise on product returns, negotiations usually are informal and approached without formal pricing guidelines. Firms often do not maximize the residual value of returned product.