There are instances when a good or product is simply not up to scratch or the casing of the item can be reused and repackaged for another purpose.
Despite the manner in which it was promoted, there was no value to the consumer at the time of delivery and it is deemed unworthy or to be sent off and repackaged for another user.
This will see the item travel in the opposite direction of the traditional supply chain, a motion that will see the practice of reverse logistics come into play.
Most commonly found with bottling or with shipping of items on a pallet, there have been cases when businesses utilize reverse logistics providers to outsource this process.
Here we will outline why more operations are outsourcing this department to bring aboard reverse logistics providers and to integrate them into their business model.
Cuts Down On Cost
When goods have to be re-manufactured or recycled for a future purpose, reverse logistics providers are seen as the ideal vehicle to make use of the resources at their disposal and turnaround these items without blowing out the budget of a company. Multiple case studies have been examined in this field, from the automobile industry to beverage operations and large scale retail suppliers who need their packaging re-purposed. The turnaround of this practice can be extremely costly if run in-house, a central facet why more brands are deciding to make use of the expertise and framework on offer by outside influences.
There is a quality control that can be gleaned by tapping into reverse logistics providers. Not only can operations manage their inventory with a greater degree of confidence, but they can meet their key performance indicators (KPIs), meet cycle demands on deadline without an elongated schedule and position themselves with greater assurance in the marketplace. From lost items through shipping to the rate of return at the end of the customer, the facts and figures point to an efficient process that cuts down unnecessary overheads and manages logistical issues with urgency.
Helps Consumer Rating
The bottom line for consumers is that they are happier when a company is open, transparent and helpful when it comes to returning goods. Without the backing of reverse logistics providers to develop that framework and provide a service when that stage is needed, there is a growing frustration at a company’s unwillingness or lack of capacity to carry out the task. That leads to growing disenchantment and ultimately it will lose customers and revenue. Such a trend can only be combated by a service provider who manages this process with expertise, increasing return pathways and offering the consumer extra avenues to comply with their purchase.
Allows Brand To Scale Accordingly
The need to introduce reverse logistics providers will often emerge when you least expect it. The return of goods in some aspects is rarely forecast as a product fault or a design flaw is overlooked until after it is sent out into the market.
By having one of the leading reverse logistics providers on hand, you can have an automated system in place that facilitates for an influx of returning assets as you scale your roll out and production in due course. Without this insurance in place, a company can be overwhelmed to the point where major cost-cutting processes have to be undertaken and a firm can be under threat of bankruptcy without the sufficient support network established.
The supply chain is far from a one-dimensional line in 2018. Reverse logistics providers are available and on hand to ensure that key management points are met and that waste is not a factor that blows a hole in the budget. If you are selling stock and do not embrace what reverse logistics providers have to offer, then speak with management and re-assess your position.