Reverse logistics is a process within the supply chain in which goods move from the customer back to the sellers or manufacturers. Reverse logistics occurs when a customer receives a product and either needs to return it completely or recycle it. Having a well thought out reverse logistics plan for your business can help you to make informed decisions throughout your business.
Having a structured reverse logistics system can assist your business when cutting significant costs. Being properly staffed and implementing the correct processes can help your business cut costs when it comes to transportation, administration, repairs, and quality assurance. Your business can easily measure cost savings by tracking the total cost of ownership and if you are regaining value from resold or recycled items, your bottomline will improve.
One way your business can effectively meet your current goals is to begin focusing on customer retention. Working to attract new customers can be more demanding than keeping your current customers with research showing that roughly 96% of consumers are willing to buy from the same retailer again if they have a positive experience. As a business you can help keep your customers happy by allowing your customers free shipping on returns and giving your customers full refunds.
In addition to lower costs for your business, one of the most significant benefits of optimizing reverse logistics is the impact it has on your bottomline. Your products can be returned for a multitude of reasons some being as simple as it being the wrong color, size, or model number and can be sold again if they are in good condition. To help make the return process seamless, it is important to have a solid reverse logistics process so that your business can easily receive the product, thoroughly inspect it, make any necessary sales, and smoothly put it back into your inventory for sale.
Often, there is a misconception that everything that makes its way back into the supply chain is unusable and ready for disposal, however, many items are still able to be used. By remanufacturing these items or finding an additional use for these products throughout your business you are keeping them out of landfill as long as possible. Another solution to improving sustainability throughout your company using reverse logistics, you can offer to recycle or properly dispose of certain items, like electronics so that they have less of an environmental impact.
Better Brand Reputation
How your business chooses to handle returns can either make or break your brand reputation. It is important that your business implement an easy-going return policy that allows your customers to feel comfortable communicating effectively and returning items. Making it a difficult process for your customer to make a return can leave your customers dissatisfied, ultimately hurting the reputation of your business.
Reverse logistics can be a great way to help your business improve both your customer service and help you be more environmentally conscious. As an ISO 14001 certified company, we at NewStream take pride in our environmental practices and customer service. Our team of experts are equipped with the knowledge and technology to help your business make those sustainable choices and have your returns be as smooth as possible.
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