Leftover materials, used product and package waste are causing environmental pollution and creating problems for disposal.
In many countries, governments are devising regulations to make manufacturers responsible to minimize waste by recycling products.
Returns Vary by Industry
In some industries, returns are the major reason for a reverse logistics system as percentages can range from as low as 2-3% (chemicals) to over 50% (magazine publishing).
Let’s look at some industries to examine why the return rates are so high.
The publishing industry has the highest rate of unsold copies (28% on average). This has been partially a result of the growth of large chain stores requiring more books and magazines. To secure a prominent display in superstores, publishers must supply large quantities of books. The fact is that superstores sell less than 70% of books they order and they have a relatively short shelf life.