Buyback contracts require suppliers to repurchase unsold inventory from retailers, which

necessitates an effective system for handling returns. A well-developed reverse logistics system is

critical for managing the return process efficiently. It includes the collection, transportation,

inspection, and processing of returned goods. This system ensures that products can be easily

returned, reconditioned, resold, or disposed of properly, minimizing costs and maximizing the value

recovered from returned goods. Point-of-sale tracking, monitoring revenue, and sales incentives are

beneficial but do not address the core requirement of efficiently handling the logistics of returned

products under a buyback contract.

Reference:

Rogers,

D. S., & Tibben-Lembke,

R. (2001). An Examination of Reverse Logistics Practices. Journal of

Business Logistics.

Blanchard, D. (2010). Supply Chain Management Best Practices. John Wiley & Sons.