What does reverse logistics consist of?
We could define reverse logistics as the process that a customer initiates when returning one or more stock units to their place of origin for any reason, it is responsible for processing the ordinary logistics process, but in reverse.
It is responsible for managing and retrieving the returned items, updating the stock and, where appropriate, making the corresponding credit notes.
Not everything related to the world of returns is negative, since without it, e-commerce would not have reached the heights it has today and the projection it maintains, in addition, the client values the brand image very positively when the process is easy and is not a problem.
The importance of reverse logistics lies not only in the fact that it improves the customer experience, but also in the fact that through it, logistics costs can be optimised. A well-planned and executed reverse logistics process is economically sustainable as it saves time and money.
What are the main aspects of reverse logistics?
The management of returns and their traceability are fundamental issues that guarantee the success of a professional and responsible company. Its main function is to recover the stock taking into account different variables, such as administrative procedures, re-labelling, re-packaging, re-circulation or destruction and recycling.
With traceability we know the trajectory, location and history of a product within the supply chain, this allows you to make a correct follow-up of the articles, with the trace of the return we will have all the information from the place of consumption to the place of origin, in this way the initial value can be recovered efficiently.
Reasons for return
The reasons for returning stock to its origin are so varied that it is complex to typify them: non-payment, defects, breakages, knocks, finishes and the main one of all of them is “at will”.
The first step must be to determine what and how the returned product arrives at our facilities; it may be defective, broken, damaged, used, damaged packaging, etc. To simplify the process, it is advisable to classify them by categories such as product suitable or unsuitable for sale.
Afterwards, the destination will be defined:
- Reincorporate to stock.
- Reconditioning.
- End their useful life in different ways: recycle, destroy, scrap, etc.
And finally, we would have to relate the classified products with their destination: - Suitable product, it is directly reincorporated into the stock.
- Unfit product, they usually have several destinations: recondition, return to the supplier or destroy.
How does it work?
Companies must define in detail each of the options that can occur when a product is returned and define very clear criteria so that the work team in charge of evaluating these products has very well defined criteria and processes to follow, it is the people who make the decisions and execute the tasks with the help of technology and automation.
Reverse logistics is a fundamental part of a company in order to offer a good service and for the distribution of materials, it is essential to have a good warehouse coordinated with practical processes that are well designed and incorporated into the operational processes.
At Pick & Pack we offer you a team of people specialised in reverse logistics who can help you define the process you need or execute the one your company wants. Offering a good return service improves the purchasing experience, promotes customer loyalty, multiplies sales and boosts competitiveness in the market.
For more information, please contact us at info@pickpacksys.com or call 603 728 708 and we will be very pleased to help you.