Warehousing in the logistic supply chain is of the utmost importance. Large importers and manufacturers use warehouses as distribution points for developing retail outlets in a particular region or country. This concept reduces end cost to the consumer and enhances the production sale ratio. When the exporter or manufacturer do not want to outsource this part of the logistic chain, they take the control to maintain the level of stock in the store called Vendor-managed inventory.

Reverse logistics has become popular for many reasons. Many retailers treat merchandise returns as individual, disjointed transactions. The challenge for retailers and vendors is to process returns at a proficiency level that allows quick, efficient and cost-effective collection and return of merchandise. Customer requirements facilitate demand for a high standard of service that includes accuracy and timeliness. It’s the logistic company’s responsibility to shorten the link from return origination to the time of resell.