Generally, logistics is concerned with the flow of goods from the manufacturer or seller to the customer. But, there are times when the customer would want to return back the goods. This is when repair and reverse logistics comes into play, which is the process that deals with the flow of merchandise from point of consumption to point of origin. There may be various reasons why a customer might want to return goods. These include shipping damage, faulty goods, delivery error, expired products, excess stock and many other reasons. Whatever the reason, return of goods means huge effects on budget and efficiency of the supply chain management.
What is reverse logistics?
Reverse logistics plays a very important part in planning, implementing and controlling the efficient and cost-effective flow of inventory on the return path for recapturing value or proper disposal. When products are returned to the point of origin, the merchandise is either resold as new, resold as second-hand, used as exchanged, recycled or disposed away correctly, depending on the condition and the reason of return. In cases when the products are damaged or faulty but not in the worst condition of being disposed, they are repaired, remanufactured or refurbished. These procedures add value to the returned products, which can then be sent back to the customer it has been returned from, or to other clients.
It is to be taken to notice that if the goods returned are under the ‘defective’ category for any reason whatsoever, the return should be viewed as a customer complaint. Whether the person returning the product is a company or the end user, this complaint must be taken into equal consideration, and appropriate procedures must be followed to determine customer satisfaction. It is your responsibility to provide your dissatisfied customer with credit, repair or a new product in exchange of the damaged product.
How important is reverse logistics?
Reverse logistics is important to optimize the global supply chain presence and improve customer experience. Understanding this will help you also understand that you can recapture the entire value of returned products by utilizing the most favourable reverse logistics techniques that comply with regulatory requirements. This will help you run your organization more effectively without having to lose out on existing customers. Besides, companies who focus on ‘Reduce-Reuse-Recycle’ will be lending a helping hand for a greener planet by decreasing the demand for new products to be manufactured, thus decreasing the carbon footprint of manufacturers.
How can 3PLs help in the process?
Instead of being upset about your products being returned, you must find out the reason and solve the issues beforehand to avoid more return of your goods. Obviously, it isn’t easy to predict which products will have higher return rates. To come up with a solution for this, you must partner with an efficient 3PL so that your logistics costs are minimized by using total visibility and gaining control over screening and testing products during the return process. You can reduce inventory and parts acquisition costs, and increase customer satisfaction by partnering with a professional 3PL.
Now that you may have realized the importance of reverse logistics, make sure you incorporate it into your company’s processes and make it a part of your global supply chain presence. And also, improve your outcomes and increase customer satisfaction by partnering with a reputed and experienced 3PL like Jayem Logistics, who is a pioneer in technical repair and reverse logistics, and many other diverse fields too!