Have you heard about reverse logistics? You are probably confused about how it works and how you, as an end consumer, have returned goods to the supplier. Or perhaps you are very much aware of it but do not know which type of reverse logistics there is and how it can benefit you and your industry.
Not to worry, we have put together a guide that not only enlightens you on how the entire process works but also explains the categories and benefits of efficient reverse logistics. We shall give you an overview of the entire process, and we are sure you’ll find this article useful.
How It Works
Reverse logistics centers on how goods are returned from you, the end consumer, to the distributors or manufacturers in the most efficient ways. It is how an industry recovers losses, reduces costs, and retains customers.
When you complain about a product, how a company schedules its return, inspects for damages, and approves your refund are all involved. When the return gets to them, how they check for repairs and utilize how the product can either be resold or perhaps part of it recycled.
This way, they utilize your return in the most cost-effective manner. This process varies according to the types of industry. The beverage industry optimizes its cans, while it is branded packaging materials in the food industry.
Types Of Reverse Logistics
They are the green and return reverse logistics.
Green Reverse Logistics: In this category, goods returned cannot be resold as they are. They are either repaired, recycled, or disposed of by the industry, all in ways that are cost-effective for them. After this process, returned goods can then be restored and made ready for reuse.
Return Reverse Logistics: In this case, goods returned can be directly added back to stock for resale. Like in areas of clothing, if you as a customer returns a dress for being oversized or too small to fit, the dress can be repackaged without any form of refurbishment.
Benefits
Here are some of the advantages and benefits of the returns utilization process.
- Saves cost: When goods are returned to the company, instead of being thrown out, this opportunity is utilized in ways in which the goods can be returned to stock or modified for reuse. This way, extra costs, and losses are avoided.
- Increases customer satisfaction: You will definitely find it more satisfying as a customer when you are assured that when goods are faulty, you can return them and your money refunded. As a company, it keeps your clients at ease and ensures their loyalty.
The reverse logistics process is vital to a company’s management of returned goods. With everything explained above, you, as a consumer, now know how the entire process works and how goods are returned to suppliers.
Also, for your industry, you can use what has been explained to build a chain process that makes handling all returns and meeting customers’ expectations easy. See you next time.