There is a lot of information out there about supply chain optimization. The vast majority of companies today actually have two supply chains: the forward supply chain where you send products to your customers after they make a purchase (both in the B2B and B2C space), and the reverse logistics process for returned items. A lot of time and energy is spent on improving forward logistics, but not every company is managing reverse logistics effectively. The problem with ignoring reverse logistics is that it can be very costly to your company, impacting facility, labor, and shipping costs.
One of the easiest ways to improve this process is to use a reverse logistics management software solution. Here are some of the benefits a great software solution can offer.
Losing track of returned items can cost your business a lot. It affect your ability to resell or dispose of an item. Plus the longer it takes for you to process a return and make some type of financial restitution to your customers (in the form of a credit or refund), the less happy they will be, and the less likely to purchase from you again. Reverse logistics software allows you to track every item from the moment a client initiates a return to the moment it’s finally resolved so you never lose track of items again.
Reduce Fraud and Waste
Returns can be costly, but fraudulent returns are even more so. Having a software solution that automatically verifies your returns is important to combat fraud. Software can track whether it falls within a specific timeframe for allowable returns, and whether it is eligible for things like warranty repairs or replacement.
Process Warranties and Repairs
Offering a warranty or repair benefit is a great way to boost your customer loyalty and encourage larger or more expensive purchases. However, if you offer it, you must have a way to track these items and keep your promises. A software solution that allows customers to register for warranty repairs, request a return/repair, and track that item through the system can satisfy your need for improved tracking and a customer’s desire for transparency in the process.
Speed Up Disposition
There will inevitably be returned products you cannot resell or repair. When those arrive in your facility, figuring out the best and fastest way to dispose of them can cut down on operating and overhead costs. The longer it takes to dispose of a return, the more you pay to manage and store those items. A software solution allows your team to quickly determine which items:
- Can be resold, and where to send it for restocking
- Must be repaired for warranty reasons
- Should be returned to a vendor or manufacturer
- Can be recycled
- Must be disposed of, either by incineration or landfill
Learn More Today
To learn more about how ReverseLogix software can help your company optimize a reverse supply chain, talk to us today.