Importance of Reverse Logistic in An Efficient Global Supply Chain

In today's competitive business environment when there are both external and internal pressures, companies can no longer ignore reverse supply chains. Most times, enterprises spend more time and money in fine-tuning their forward supply chains while ignoring their backward supply chains. Enterprises have begun to understand that by giving importance to reverse supply chain, there is a significant reduction in operating costs by reusing products or components. Efficient reverse supply chains bring many benefits to the companies. Enterprises understand that reverse logistics are no longer a necessary evil but can be a tactical asset that can reduce costs.  

  While your supply chain solution can maximize customer value and achieve a sustainable competitive advantage, an effective supply chain solution will use adequate metrics to measure performance levels, maintain clear accountability and effectively collaborate and communicate with employees, customers and suppliers for smooth movement of goods. It is evident that continuing globalization and challenges occurring in areas like reverse logistics, environmental sustainability, and supply chain integration make a huge difference in the supply chain.  

  While many companies have been successful in improving their traditional supply chains, most enterprises do not have supply chain management systems which handle the reverse supply chain or, if they do, the existing applications are disconnected. Organizations therefore need to have in place explicit logistics procedures that can handle the returns. By understanding the reason for the return of products that leave the manufacturing or a retail packaging unit makes it’s feasible to recognize the various methods of enhancing the decision-making and supply chain process. Reverse logistics help enterprises with an idea of what is coming back by automating returns across different channels. 

  Understanding the importance of reverse logistics management, many companies these days have chosen to either apply new solutions to better manage their reverse logistics process or, alternatively, to outsource their reverse logistics operations to service providers. Enterprises that have implemented effective reverse logistics solutions will be better equipped to enhance consumer service and response times, minimize environmental influences by minimizing waste.  

  A competent third party service provider will be able to take advantage of economies of scale and specialized expertise in planning reverse logistics operations. The critical phase in ensuring effective returns processing, is in choosing a returns management solution that manages the entire process of reverse logistics in an efficient manner. Leading service providers have developed integrated returns management system designed to help enterprises to specifically deal with the reverse logistics in a logical and efficient manner.  

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