What is Reverse Logistics
Reverse Logistics
Product returns are inevitable for any retail or eCommerce company. However, the process behind it is pretty interesting to look at. In case you’ve ever wondered how product returns work, you’ve come to the right place. Today, we’ll take a look at Reverse Logistics along with its various phases, ways, and best practices.
What is Reverse Logistics
Reverse logistics is precisely what it sounds like. While in standard logistics, a product/item is delivered from a manufacturer/supplier to a customer, reverse logistics is the complete opposite. Here, a damaged or unsatisfactory product is sent back to the seller by the customer. Hence, the customer’s starting point and goods travel backward to the distributor and eventually the manufacturer/seller. Reverse logistics is also used when an item is to be recycled.
The working of Reverse Logistics
When we talk about reverse logistics operations, we need to understand that an item will take at least one step backward in the supply chain. Many different plans can be incorporated to execute it too. Yet another vital aspect to note is that the process of reverse logistics is different for every industry. Take the beverage industry, for instance. They aim to make customers reuse their containers and use empty tap containers in reverse logistics. Here, they will also make plans for transport, manage the content of shipments, and clean the containers, of course.
Similarly, even the construction sector recycles materials that can be restored and minimize further costs while also ensuring they reduce waste. One industry that has to remain extremely careful with reverse logistics is the food industry. While they deal with simple returns, they also need to face the return of rejected food products. Any delay from here can cause the food inside to start rotting, giving companies losses that they may not be able to minimize.
When does Reverse Logistics come into play?
Companies usually use reverse logistics when a customer requests a return. They can try two things with the product; either gain any remaining value or dispose of it. Product returns can become detrimental if not paid attention to correctly. Firms typically engage in reverse logistics to offer their loyalty to customers and convert them into return customers while reducing as much loss as possible.
Best steps to follow for Reverse Logistics
We’ve seen reverse logistics, how it works and when companies use it. Now it’s time to look at some of the best steps that you can follow to assure a successful reverse logistics plan.
1)Check Returns:
When an item is requested to be returned, make sure to examine the product’s condition and then schedule further shipments and refunds.
2)Work on the product:
Once a product is returned, check for the type of damage. If it does not hold any more value, take the most cost-effective and efficient step, such as refurbishing or scraping.
3)Repairing:
Once you examine the product for damages or complications, send it over for repair. If the item cannot be repaired, try selling a part of the entire item itself (if necessary).
4) Recycling:
If there’s a part of an entire product that cannot be sold, fixed, or reused and you decide to scrap it away, consider recycling. This step can help you save up better if products are returned at higher amounts than usual.
Conclusion
To conclude, that was all about reverse logistics and its different operations. Depending on the industry you are in currently, the entire process may differ. However, a few things may remain the same. To ease up the process, even more, consider using optimized reverse logistics. Learn more about top reverse logistics companies here.
