Reverse Logistic Management: Value Addition to the Business Process by eBuilder


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									       Reverse Logistic Management: Value Addition to the Business Process

Return of products is a common scenario in the customer friendly marketplace. Research studies show
that nearly 4-6% of retail purchases are return every year. Today’s globalized business world with its
technology integration and aggressive competitiveness, challenges the retailers and vendors to meet the
ever-changing customer demands, and process the returns in a proficient way that is both cost-effective
and quick in collections and returns, rather than considering these as transactions that lack business

Efficient logistics with good supply chain management can help organizations meet the customer
requirements of high standard of accuracy and timeliness. Armed with best practices for returns
management, the organization can reduce the time taken between returns and resell thus addressing
both reverse logistics and customer retention issues. Returns management thus forms the key
component of the business strategy aimed towards efficient supply chain management systems leading
to customer retention and operational efficiency.

However, reverse logistics is more than returns management and includes activities related to after-
market supply chain, returns avoidance, disposal and gate keeping. In other words, Reverse logistics
stands for all operations involved in planning and implementing, efficient and cost effective flow of raw
materials or finished goods from the customer to manufacturer- the reverse supply chain, and aims for
recapturing the value of the products through remanufacturing or refurbishing or disposal of the same.

Leading supply chain management solution providers in the industry sector have designed efficient
reverse logistics management solutions incorporated with various tools for repair and calibration of
returns with end-to-end visibility throughout the entire reverse supply chain. The process provides an
interactive platform for return orders, stock updates, inventory, authorizations, sales orders, pick-up list
and repair orders. Effective reverse supply chain paves way for automation of business processes
ensuring cost reduction and opportunities, while adapting to the changing regulations with ease. The
streamlined real-time business intelligence reports facilitate rapid implementation.

The reverse logistics management solution offered by the service providers tends to maximise
infrastructure investment of the client organization by integrating it with the existing systems. Further, it
provides connectivity to all the members of the value network and enables customers to track and trace
returns throughout the network with the help of reference identifiers. This process promotes performance-
based billing with order and returns replacement at end-user locations, complete with order fulfilment
documentation and transport labels. Customer retention being a vital factor in today’s competitive
business world, reverse logistic is a value added process.
Also read on - Time to repair, value network

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