Reverse logistics is an important supply chain operation that moves the goods from the customers back to the sellers/manufacturers. It is the backward movement of goods in the supply chain, reversing from the customer to the distributor, and then the seller. In reverse logistics, the end receiver is accountable for figuring out what to do with the goods received back – whether to resell it, or to discard it.
The motive behind reverse logistics is to try and regain the value of the unsold, returned goods. Ecommerce giants like Amazon started the concept of order returns, and since then, the ecommerce industry has been offering customer centric benefits like try and replace, exchange within a certain period of time, etc. All these (and more) facilities require the service of reverse logistics. Retail logistics services in India are on the rise and are demanding reverse logistics services more and more. Reverse logistics can have many benefits, including helping build customer loyalty as the primary one.
5 Factors in the Process of Reverse Logistics
Every business in the ecommerce sector needs to make arrangements for reverse logistics in this day and age. Here are the five aspects involved in the process of reverse logistics –
Return Order Processing
The first step in reverse logistics is when you get a return order request from the customer who ordered the product in the first place. This request leads to a subsequent series of operations of reverse logistics. The first one of these operations is authorizing the customer’s return request. Return request authorization involves approving the amount to be refunded (if the order is prepaid,
Return Order Treatment
Figuring out what to do with the orders returned or exchanged is the next step involved in reverse logistics. Generally, ecommerce stores, and other sellers have a predetermined strategy for dealing with such products. If you want to make your reverse logistics more optimized, you must invest your time in strategizing the same so that once the returned order arrives back, you know exactly where to put it and what to do with it.
Return Order Movement
Figuring out the movement of goods from the customer back to their point of origin is another crucial aspect that sellers deal with. Relying on third-party logistics services is a convenient method to solve the problem of reverse logistics. You must also assess whether or not the order returned needs to be replaced with another product at this stage. A reliable logistics company like AWL India, that provides retail logistics services in India, along with many other supply chain solutions, can help your business get the reverse logistics solutions it needs.
The aim of reverse logistics is to eliminate the possibility of total loss and regain at least part of the value of the unsold goods. This prompts the sellers to try and repair the damaged/unwanted goods to improve its value and salability. Sellers often dedicate an entire team that examines the goods returned and determines whether or not it can be repaired, and be made fit for sale again. Sometimes, the repaired products might be sent back to the customers who ordered them.
The parts of objects that lose their worth as salable goods need to be either discarded or recycled. It is the obligation of every business to discard every unwanted product ethically and/or recycle them to reduce their negative impact on the environment.
Why is Reverse Logistics Valuable for Your Business?
Reverse logistics as an activity has countless benefits for a business, especially businesses in the retail logistics services in India, ecommerce, etc. It helps streamline the flow of goods and keeps the process efficient. By sorting out unwanted goods, and reallocating them to further use or recycling, reverse logistics saves costs, value, and brings the product lifecycle to an end at the right time.
The short and long-term benefits of reverse logistics include becoming more sustainable as a business. By being aware of the effects of what your product is capable of doing to the environment, provided the lifecycle of the product is not ended properly, can help you, as a business, make better decisions and add to your own corporate social responsibility values.