What are the benefits of reverse logistics? – Quora

As shippers endeavor to wring each cent from their logistics costs, theyre progressively investigating their turn around logistics services hones. Without wonder, they may search for a jackpot holding up to be mined.

Companies cant afford to treat reverse logistics management as an afterthought. It should be a core capability within the logistics organization. For a long time, most shippers paid little attention to returns

Which includes changed as companies increasingly realize that understanding and effectively managing their reverse logistics programs are unable to only reduce costs but in addition increase revenues. Additionally, it may make a huge difference in retaining consumer loyalty and protecting the brand, once we explain more fully below.

Customer happiness occurs when an organizations services or products meet or exceed customer expectations. Actually, everything being equal, customers typically care more about having their product, service and support requirements met, and much less about how exactly their vendors get it done.

What customers really would like is to acquire their voices heard, after which, get their suppliers actually do something about it (i.e., they would like to see results). Numerous shippers, or shippers who may host utilized a third gathering logistics supplier, utilize their logistics and reverse logistics administration capacities as market differentiators. The intent is usually to keep customers so pleased with their services, before, during, and following original delivery, that they can remain loyal to their suppliers, repurchasing their goods and/or services again, and again, and again.

Reverse logistics certainly are a higher priority in some industries when compared to others, especially those where returned product can be recycled or remanufactured. For example, 70 to 90 percent with the goods bought from the auto aftermarket has become remanufactured, reports the Remanufacturing Industrial Council International.

An incredible example develops from a diesel engine manufacturer. This aftermarket group works together with 31 regional distributorships to guide engines once theyre outside in the sector. Distributors are given an economic incentive to recover and send back broken or damaged parts towards the aftermarket group for remanufacturing.

In the event the core products, parts returning to be remanufactured, decide to be returned, the distributor electronically sends an order on the aftermarket group. Core merchandise is returned via a dedicated freight desk of customer satisfaction reps who you will need to schedule pickups using a collection of preferred carriers.

Similarly, large opportunities will often be available around asset depreciation from the reverse logistics management program. The volume of channels to eliminate returned goods (in almost any condition) is growing significantly over recent times. The gain impact of the opportunity can be very significant. As an example, a digital manufacturer recently discovered that they might eliminate returned items collecting dust of their warehouse at 80% of retail price.

The per unit price tag was above their original manufactured cost, but as these folks were returned units their book value was already wiped off to zero, so the gross profit was 100%. The net income impact of returned asset depreciation is essential to evaluate because time can rapidly reduce the price of idle returned goods as well as their potential positive influence on corporate profits.

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, Warehouse Builder, Supply Chain designer, and 3PL Bidder over 20 years…

It depends on the cost of the goods being returned.

If the cost per unit is low, it is a customer service issue. For alot of consumers, especially with a liberal mindset, you taking back an unwanted or incorrect item is far more green than being told to dispose of it into a waste stream. This shine is helpful in building customer loyalty, even more so if you are touting the renewable/recycling/etc. sourcing or fair trade aspects of your product.

If the cost per unit is high, the returned units can be either restocked (if unopened) or sold as 2nd class goods *like new*. The cost to move and qualify the return for these goods is much less than you would gain from another sale so it is worth to your revenue vs. expense streams.

The third type of reverse logistics doesnt make sense to me. It is due to brand status. By suggesting that a defective or incorrect unit should be binned, some marketing people feel that it makes the brand you are selling less valuable. To them, reverse logistics is about maintaining the illusion that to customers that the unit is question is far more valuable than they are aware.

Note that to track and analyze defects in process or manufacturing does not require reverse logistics. A CSR should be able to have a defective unit shipped to a engineer, CS manager, or even themselves to be reviewed and studied. A RL operation is about having a facility or partner with enough expertise and standards to judge the quality and sale value of the goods. This only pays for itself if the volume is sufficient, the speed of restock is high, and the standards for quality checks are very clean and clear.

Theprocessofplanning, implementing, and controlling the efficient, cost effective flow of raw materials, in-processinventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or properdisposal

) Enhance customer service and loyalt

3) Achieve sustainability goals and objectives.

What happens to products after the point of sale is not only important for a companys profitability, but it is also critical to the customer experience. For more detail visit-OTHER LOGISTICS SOUTIONS LMJ

The major benefits of reverse logistics are:

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Here are 3 benefits of reverse logistics:

Maximize value for returned and overstock goods by shipping, reselling, or sustainably disposing of them

Avoid taking up valuable storage space with overstock and returned goods

Deter returned and overstock goods from landfills- your company can tie this into wider corporate social responsibility strategies, particularly ones based on sustainability and environmental stewardship. This is a measurable way to show socially conscious consumers that your brand is aligned with their values

Heres a great guide that shows you how retailers can benefit from reverse logistics:Three Strategies to Optimize Your Returns Management Process White Paper

The greatest benefit of reverse logistics is that it generates very high level of customer satisfaction because of return management being kept in place. Customers cannot be taken for ride in case of supply of defective products to them.

It maximises the economic life of equipments by following the process of recycling & refurbishment.

It brings transparency & higher level of confidence of end user in supply chain process.

It helps sustainablity & sustainable growth.

Overall it creates competition & customer is final winner.

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Still have a question? Ask your own!

Reverse Logistics: How good is Liquidity Services Inc.?

What is the barrier of reverse logistic?

What are some of the big companies that manage reverse logistics / reverse supply chain?

Which companies are doing reverse logistics in pharmaceutical?

What are some companies that provide only reverse logistics / reverse supply chain solutions?

What is the difference between the functioning of forward and reverse logistic services?

Why have many organization applied reverse logistics?

How matured is indian reverse logistics space?

Which is the best product for reverse logistics?