What To Know About Reverse Logistics?

    Logistics has a traditional path: it starts from the company towards the customer — from the inside out. However, a new concept has emerged in recent decades: reverse logistics.

    It refers to the return of a product that had already left the enterprise. At the same time, this is not necessarily a negative characteristic. It can happen for a variety of purposes and, in this way, it is also a way to help the business develop.

    However, if the traditional one already poses challenges, the reverse requires even more care in its execution. In this regard, the main elements to consider include:

    Goal Setting

    Reverse logistics can be of two types: post-sale or post-consumption. In the first case, the item returns for strictly commercial reasons: the part that doesn’t fit, the item with a factory defect, or the incorrect shipment of the order are common reasons for the return.

    In the case of post-consumer reversal, as the name indicates, the product has already been used. This happens when an enterprise allows the exchange as long as the element is in good condition, for example.

    However, what stands out in this category is reverse logistics concerning the packaging. It is increasingly common for companies to collect their packaging to ensure savings on raw materials and direct the proper disposal.

    Risk Assessment

    However, reverse logistics from wicker park logistics cannot be implemented without first knowing its risks. Therefore, it is essential to analyze all the issues that influence the results, which can generate some level of difficulty in the execution of tasks.

    The idea is to understand the costs, the points that generate the most significant difficulties, and what action needs to be taken to ensure final consumer satisfaction — among other issues. This allows the company to have the necessary resources to perform this step well.

    Activity Sequence Definition

    After defining objectives and knowing the main risks, it is essential to create a flow with the activities that must be performed. Therefore, it is worth establishing, for example, the exchange policy and the conditions for reverse logistics to take place. Don’t forget to consider issues such as the Consumer Protection Act.

    It is also valid to define programs for packaging collection and the main steps for everything to be done in a beneficial and viable way. In this case, it is still necessary to establish how the materials will be reprocessed.

    Results Monitoring

    As this issue is put into practice, it is critical to track what its effects are accurate. This action is essential so that the risks previously identified do not materialize into threats and waste.

    At this point, it is worth tracking costs, frequency of reverse logistics, and even consumer satisfaction. In this way, it is possible to consolidate effects that are more suitable for the business objectives.

    Please see the accompanying resource below for my information on how to lessen the effect product returns have on your logistics.

    Infographic provided by KGR Logistics – managed transportation solutions for your business