Reverse logistics is a domain that is vital for developers and manufacturers who have to manage items that are returned or repurposed.
From computers that need to be repaired to items of clothing that are one size too big or small to a piece of machinery that is under warranty or a smartphone that is on-sold to a local outlet, this is an all encompassing procedure that has to be a priority.
There are clever strategies and initiatives that are often put in place by corporations and businesses entities that have the resources to look after these considerations, but it will often fall on the lower to middle manufacturers to follow good practice when they don’t enjoy those same luxuries.
Here we will look at the benefits of managing this department effectively and efficiently, alleviating many of the hassles that enterprises encounter over the span of their cycle in the marketplace.
Cutting Down on Avoidable Costs
Put simply – companies bleed revenue when they are not on top of their reverse logistics. When products have to be returned due to continual faults, they are lost in transport or there is no long-term value where the stock has to be quickly discarded, that rate of disposal will eat into the finances of the organisation. Issuing a plan of attack where each phase is carefully managed and considered ahead of time will ensure that costs are reduced. This is an error from all departments where key procedures are not coordinated and there are not mechanisms to deal with returns correctly.
More Sustainable Practices
Organisations who drop the ball over reverse logistics will see stock items wasted and discarded as the strain placed on turnover of product becomes overbearing. At a certain point this process becomes unsustainable as behaviours have to be needlessly repeated and additional resources are committed to a department that fail to adhere to good practice. From the transport of goods to the administration team who run a gauge of the balance sheet, a healthy focus on reverse logistics will ensure a sustainable business model.
Boost in Production Speed
From the perspective of the customer, nothing is more frustrating that making an order only to wait days, weeks and even months on the product being shipped and delivered to the front door. So much of what the brand will be about comes down to their capacity to issue, repair and return items that do not initially live up to standard. Reverse logistics is a matter of dealing with a problem in real time and instigating a resolution where all parties are happy with the outcome. Can the brand rise to the challenge and return the goods in the timeframe they outlined?
Reaching Company Objectives and Targets
There will be a myriad of company objectives and targets that are directly affected by the management of reverse logistics. One of those central targets will centre around customer retention, i.e. how well a business can not only attract interest from the public but actually maintaining that interest over multiple transactions. Think about a gym or streaming service that can continually bank on the same customer paying on a monthly basis. If a brand falls short of industry standards, the reputation will drop and customers won’t be retained. There will also be assessments run internally where financial goals, sponsorships and professional partnerships are all put at risk with poor management practices.
Superior Customer Service Apparatus
So much of what effective reverse logistics looks like from a management perspective will revolve around communication. From the standpoint of a consumer towards the business, this will be showcased through the customer service department – including phone calls, emails, social media messages, in-store consultations and other modes that are communicated between the two parties. If this is a domain that is executed with efficiency, it will be based around a sound customer service model where the consumer is notified with clarity.