To truly realize the importance of reverse logistics in the supply chain, it is first crucial to understand what reverse logistics is and how it can affect your supply chain, and possibly improve your bottom line.
What is Reverse Logistics?
Reverse logistics includes monitoring the life-cycle of products after they reach the end consumer, which comprises of knowing how a product can be reused, how it should be properly be disposed and ways by which an expired product can create value.
The reverse logistics that affect supply chains the most are the return of products from the end consumer back to the manufacturer. For most this may appear as a hassle for the manufacturer, but there are ways by which logistics and supply chain companies in India can use it to their advantage-
The Benefits of Efficient Reverse Logistics Systems
Whether it is regular shipping or coastal shipping in India, many companies consider the return process to be a necessary evil; however, there are numerous benefits associated with the process. Some of these benefits are:
- Reduced costs
By planning in advance for returns, a company can lower related costs of administration, shipping, transportation, tech support, etc.
- Faster service
If a company is quick to refund or replace the goods, it can actually aid in reviving a customer’s faith in a brand.
- Customer retention
Companies should understand that managing errors is just as important as making sales. Unfortunately, if a customer has a bad experience with a product, it is the company’s responsibility to turn things around. In fact, fulfillment errors can help employees learn how they can keep customers happy even after a blunder has been made.
- Reduced losses and unplanned profits
Recover the loss of a failed product by either scrapping it for parts or repurposing it in a secondary market. Reverse logistics is all about taking a product that would otherwise cost a company significant loss and transform it into an unforeseen asset. This way a necessary evil can actually lead to customer satisfaction.