Reverse Logistics – Critical Aspect of Good Supply Chain
Every enterprises irrespective of its industry sector survives through aggressive competitiveness with the help of best practices in operational management, world-class infrastructure, updated Software applications and a robust supply chain management system. However, returns become unavoidable occurrences which pose a huge problem for both the manufacturing and retail industry. Goods that are returned are often dumped in the warehouses, to be sorted out at a convenient time, consequently taking up a large portion physical inventory of the warehouse. Organizations 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. Nevertheless handling returns need to be kept under control with the help of policies and procedures. Wikipedia defines supply chain as a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain solutions transform natural resources, raw materials and components into a finished product and is delivered to the end customer. However, the complexity of the global business environments and the growth of e-commerce across both B2B and B2C markets has seen supply chain systems, wherein used products may re-enter the supply chain at any point where residual value is recyclable and is referred to as reverse logistics. Reverse logistics offer enterprises opportunities for improving visibility and profitability while lowering costs in the supply chain. However, smoothening of the process requires a robust returns management system that will ensure that all returns are sorted out efficiently. By ensuring no wastage or any shortage is an important aspect of good supply chain solution. 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. The process helps to refurbish vast array of products as per client specifications and put in back into the marketplace in minimal time. With the speed of delivery the supply chain solutions providers help their clients minimize return inventory, improve profitability and organizational efficiency.