Reverse Logistics Is it for you or against you
Reverse Logistics Is it for you or against you
discover | Tuesday - 23 / 07 / 2024 - 3:21 pm
Reverse Logistics: Is it for you or against you?
Reverse Logistics Can you guess the percentage of online store returns last year? It is 14.5% (according to estimates from the National Retail Federation in the US). Another question: Can you deprive your customers of the opportunity to return their purchases? Absolutely not! Consumer protection laws will stand in your way. Additionally, 79% of shoppers believe that free returns are an important factor when shopping online, so it’s also about protecting your customer base.
Returns seem like an inevitable evil, don’t they? … Therefore, the best you can do is manage this process efficiently so that you can minimize your losses. This is what we will discuss in today’s blog post where we will talk about returns and reverse logistics, and about a unique system that will make it easier for you to deal with the burdens of the entire task.
“I think I’ve heard the term logistics before.”
“That’s right, it was in a blog post (What’s on the minds of supply chain entrepreneurs?) and it means moving products from manufacturers to consumers through the supply chain. So, what do we call moving goods back through the supply chain to return them from the end consumer to the online store/ manufacturer?”
“You got it! It’s called reverse logistics.”
Types of Reverse Logistics:
Reverse logistics are divided into two main types: consumer returns and corporate returns.
Consumer Returns:
Consumers typically return products for three main reasons: they discover a defect, they are dissatisfied with the product, or they change their mind about the purchase. Products are also returned to the supply chain for other reasons, such as when they can be recycled or refurbished, or when there are special disposal requirements that only the seller can meet.
Regardless of the reason, customers expect the return process to be a streamlined and hassle-free experience, and when it is, they reward the unsullied service with their loyalty to the company providing that service.
Corporate Returns:
Businesses or retailers may return products to manufacturers or distributors when the products are not sold, when there are delivery failures, or when the items reach the end of their shelf life.
By returning these products back through the supply chain, companies maximize their inventory, reduce waste, and comply with environmental regulations.
Why e-commerce owners hate reverse logistics:
In addition to the obvious reason of lost revenue, reverse logistics can be very complex, as returns management involves a number of challenges. Here are some of them (not limited to):
– Communicating with customers.
– Creating different return policies and then adhering to them.
– Organizing transportation and pickup.
– Tracking the movement of returned inventory throughout the supply chain.
– Analyzing the value of returns and their impact on the company’s bottom line.
Fortunately, the market today is full of systems that can help you automate these processes. Well, maybe the entire process cannot be automated (for example, you still need an employee to check the quality of returned items, and then accept or reject the return request), however, technology can help you deal with the “chaos” of the reverse flow of products and goods.
If you are not sure whether an investment in a system that manages reverse logistics (such as Logix warehouse management system) is right for your company, here is a quick look at some of the benefits that Logix system can offer you:
Self-Service Customer Service Portal:
We’ve previously discussed the importance of a self-service customer service portal in effective communication. Today, you’ll see the benefit of this feature in empowering your customers to set up and manage their return process with ease.
Once a customer requests a return, Logix Warehouse Management System either approves or rejects their request according to your e-commerce store’s return policy. This is done through a process called Return Merchandise Authorization (RMA). If the products are eligible for return, the portal will allow your customer to choose the most convenient delivery and shipping method, print shipping labels, and select between a replacement or refund (all while indicating the reason for the return).
Streamline Shipping and Product Tracking:
Logix Warehouse Management System enables you to generate domestic shipping (and compliant to standards) documents that you can provide to your customers. You may also need to support international returns. This might seem like a bigger challenge, but not with a system that supports handling refunds in multiple currencies and allows you to generate all the necessary documents (shipping labels, customs documents, tax forms, etc.).
Supporting Diverse Demand Flows:
Whether you’re an industrial facility working with hundreds of raw material suppliers or you are an e-commerce store operating on a drop-shipping system, the Logix warehouse management system is on your side and supports various types of reverse logistics flows.
Sometimes large companies like Amazon and Walmart offer a refund without returning the product (for example, if it is damaged so that it is not worth the cost of returning it). Did you know that you will find the same feature in the Logix system?
Reports and Analytics:
When talk is about logistics returns, there are some important aspects to evaluate:
– Reasons for returns.
– Number/percentage of reverse shipments.
– Value of returns and cost distribution.
– Customer satisfaction with the return process.
As you can see, it’s not just about monitoring financial results, but also about receiving and analyzing direct customer feedback. You need to know what your customers are thinking so that you can first provide them with better service, and second, align your inventory selection and control the quality of your products. Therefore, you will appreciate the powerful analytics module provided by the Logistics system, which includes a wide range of practical reports and dashboards.
Sustainability:
One of the greatest advantages of effective reverse logistics management systems is that they can help support your company’s sustainability initiatives. With a growing focus on sustainability and finding ways to reduce the carbon footprint, Logix warehouse management system provides an opportunity for your facility to be more environmentally friendly, which enhances its brand image.
How Logix does this? By providing up-to-date data that helps you reduce returns before they occur, identify resale opportunities, and recycle unusable products, which reduces waste as well as the environmental impact of the return process.
Returned Inventory Management:
Attention! Most traditional warehouse management systems neglect the issue of reverse logistics, perhaps in an attempt to simplify the user experience. However, tracking returned inventory is itself a cumbersome process, and there’s no time for simplification there!
Fortunately, Logix warehouse management system breaks this rule by providing powerful reverse logistics management capabilities, making it easy for users to make informed decisions about refurbishing, restocking, or even disposing of returned products.
The Final Word: No Going Back.
Effective reverse logistics management that prioritizes customer satisfaction and enhances the bottom line starts with the right ERP system, like Logix.
Logix is distinguished by its flexible and customizable platform that empowers businesses with the integrated industry-specific features they need to manage supply chains, warehouses, orders, and inventory from one location, whether teams are working in the office or remotely.
Logix’s warehouse management system (WMS) helps small and medium-sized businesses accept returns, issue refunds, track inventory, move products, and manage customer data. Built-in documentation and reports ensure that every member of your team is aware of the volume of returns, the associated costs, the status of returned products, and much more.
Contact our experts to learn more about Logix’s innovative, customer-centric cloud ERP system and how it can help your company achieve effective and sustainable reverse logistics.
