Using Reverse Logistics to Improve Asset Management
Asset management is one of the most compelling aspects of managing the supply chain. But do you realize how important managing the reverse supply chain is for maintaining effective control of your inventory and the cost of ownership?
Depending on your business model, reverse logistics provides you with the opportunity to capture value from returned assets. The secret is finding an efficient and affordable solution for managing the reverse supply chain.
When you do, you can expect to recover a significant portion of your original capital investment, lowering the total cost of ownership and helping offset operational costs.
Understanding the Reverse Supply Chain
Simply put, the reverse supply chain includes every facet of your business that takes place after the point of sale. This might include returns, exchanges, warranty repairs or replacements and – perhaps most important – the disposition of those products that get returned.
Many businesses have processes and procedures in place for handling warranty repairs. You may even have solid processes in place for getting your customer a replacement item when necessary.
But what happens to the returned product? Are you truly capturing the maximum value of those items, or taking a loss? Or, are you spending even more money to dispose of or recycle these returned items?
When you implement tools and processes to manage and control the reverse supply chain, you can recapture the value of those assets and, ultimately, improve profit margins and your bottom line.
Reverse Logistics Assists with Asset Recovery & Reclamation
Every consumer has a story of needing a warranty replacement product and receiving it as promised. But, when it comes to retrieving the faulty item, they often struggle to obtain resolution. Eventually, most of these (now happy) consumers end up tossing the original item.
Do you truly believe that the item – whatever it may have been – had no value to the original manufacturer, the retailer or both?
When you implement a comprehensive reverse logistics solution, you can rest assured that you will recover any residual value of assets such as these.
Managing Returned Assets with Reverse Logistics
Once you recover an asset, then what?
If your business does not have as a dedicated team or department to deal with returned or recovered assets, building one would likely require more resources than you have (or are willing) to devote. And maybe that’s why those assets haven’t been reclaimed or managed in the past.
But, if you have a simple and affordable solution to assist with this process, you can quickly determine the disposition of returns. Your options may include returning the product to inventory, returning it to the manufacturer, liquidating it or recycling it for scrap value.
Whatever course is appropriate, this approach provides the best means of recovering the maximum possible residual value.
At ReverseLogix, our cloud-based SaaS technology platform is both customizable and scalable and capable of integration with your existing enterprise technology solutions. Contact us today to request a demo. We look forward to showing you how our reverse logistics solution can assist you with asset management and value recovery.