Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. Hence the name reverse logistics. This can encompass anything from returned goods, inward disposal/recycling of packaging materials, the recycling/responsible disposal of materials from previously sold products, etc.
The full definition of reverse logistics, as according to The Council of Logistics Management, is the process of implementing, controlling, and planning the cost-effective flow of finished goods, raw materials, and in-process inventory. The flow is from the point of consumption (i.e. the customer) to the point of origin (i.e. the manufacturer), to properly dispose of these or to recapture value.
Included in this definition is any re-manufacturing or refurbishment of goods.
GSCSPL can help you out in the below scenarios:
• Return of goods by customers • Return of unsold goods by distribution partners due to contract terms • Re-use of packaging • Refurbishment of goods • Repairs and maintenance as per guarantee agreements • Re-manufacturing of goods from returned or defective items • Selling of goods to a secondary market in response to returns or overstocking • Recycling and disposal of end-of-life goods
Existing and growing market dynamics, such as higher customer return rates and a need for recycling and re-use, are increasing the occurrence of these instances of reverse logistics. Traditionally, reverse logistics hasn’t been anybody’s favorite area of supply chains. Often largely neglected and ignored by companies, reverse logistics departments are even today working in widely acknowledged outdated formats, utilizing things like fax machines and spreadsheets.
One of the largest benefits of an effective reverse logistics process is that it can provide organizations with valuable product data. This is crucial for the correction of existing issues that might be causing the return of products. Well planned and thoroughly implemented reverse logistics processes are able to easily collect data on the reason for customer returns, as well as other useful data such as common product defaults and lifespans.
Potential for Reduced Losses and Additional Revenue
Proper and streamlined management of goods and materials traveling back up the supply chain can result in reduced losses as well as additional revenue. GSCSPL can help to make this additional revenue can be realized by refurbishing, repairing, and recycling goods, or selling off returned products or materials from them.
GSCSPL can streamline reverse logistics processes for reductions in various cost areas. These include:
• Storage costs • Transportation/return shipping costs for both delivery and returns (i.e. some companies combine replacement shipping with return shipping to reduce transportation overheads and provide heightened levels of customer satisfaction) • Returns labor, including processing, credit reconciliation, technical support, and vendor management • Costs associated with fraudulent returns
By developing an efficient reverse logistics process, companies can not only reduce these costs but more accurately track and analyze them as well. Enhanced Service
GSCSPL can help you develop a high functioning reverse logistics department and its processes will be able to provide disappointed customers with a superior level of service upon the return of their items.