News flash: your COO wants a reverse logistics platform. He or she may not actually know that yet, but while many companies have completely streamlined their forward logistics (getting the product out to door to your customers), very few have nailed reverse logistics (returns management and all the accompanying business impacts that come with it). Finding the right reverse logistics SaaS platform can have several operational benefits.
What happens when someone returns an item to your company? If you’re like most businesses, the answer to this is probably a little murky. Some items can still be sold, allowing you to recapture some or all of the value instead of taking a loss, but even that requires an operational process to get the item from the returns processing center to a retail location or warehouse where it can be resold. Other returned items may need to be disassembled and sold for parts, refurbished and sold at a lower price, sold on a secondary market, or disposed of properly. If you don’t have a reverse logistics platform to help categorize and streamline the movement of goods after they are returned, you are not maximizing the value they can get after they come back.
A poorly managed reverse logistics process, no matter what industry you work in, can significantly increase the cost of doing business. Calculating the cost is more than just subtracting the return from your total sales, it includes processing costs, logistics costs (transportation, warehousing), credits to the customer, replacement costs, and depreciation of the asset over time.
A reverse logistics platform can help with the entire process, tracking the item through warranties or product registrations, managing the return merchandise authorization (RMA) process, providing return notifications to staff, offering stock rotation and disposition tools, and plenty of other options to lower operational costs.
Improve Turnaround Times
Not having a reverse logistics process is costly, but so is building your own, so for most companies it makes sense to find a platform that you can purchase with off-the-shelf capabilities for an immediate impact on your reverse logistics. A hassle-free return process improves turnaround times to get credits back to your customers, reduces the time that returned items sit in a warehouse or returns processing facility, creates a paper trail once items come back for easy tracking, and reduces your losses from what can be an unpredictable part of your business.
If you’re ready to find out just how much a reverse logistics platform can help your business (and impress your COO), request a demo from ReverseLogix today.