Reverse logistics management is now playing a bigger role than ever in the supply chain of a successful business. The rise in e-commerce has led to a change in the services customers expect, forcing logistic providers to adapt their infrastructure to meet demand. Producers have discovered value within returned assets and applying an efficient reverse logistics system, produces cost reductions, adds efficiencies and improves the consumer experience.
Conventional logistics optimizes the flow of goods from producer to the consumer, reverse logistics optimizes the flow of returned goods. This can include commercial returns, either straight forward returns or faulty goods, overstock where distributors send back excess products that they are unable to sell and service returns by customers where products need service or repairs.
Given the variety of ways and reasons in which products can be returned, there needs to be procedures implemented that make management of reverse logistics much easier. Streamlining returns, repairs and product reallocation processes needs to be made simple for the customer which will provide more control on the logistical end. This will also mean the merchandise can then be processed and available for re-sale as quickly as possible.
The correct polices need to be in place to enable customers to return their purchases at either drop-off points or any retail store (if applicable). Thus, giving POS systems to process the returns with far more efficiency regardless of where the item was purchased. This can be complemented by a dedicated reverse distribution channel to separate damaged goods from those that can either be re-packaged or immediately put back into circulation.
With complete understanding of the type of goods more likely to be returned you can plan and streamline inventory management. This is particularly useful during peak periods of the year when sales and returns are often at their highest.
2H Storage Solutions are warehouse and distribution experts and can help you find the right reverse logistic strategy for your business. Give our team a call today on 01937 585057.