Why Should Companies Give Importance to Reverse Logistics?
To define in simple terms, reverse logistics is a process that refers to all the processes related to repairs, product returns, maintenance, recycling and distributing the materials and products. In its entirety it incorporates all the running products in reverse through the supply chain to attain maximum value. Importance of Reverse Logistics Enterprises that have implemented reverse logistics have been able to enhance consumer service and response times, minimize environmental influences by minimizing waste and enhance complete corporate citizenship. Other reasons for which enterprises need to execute reverse logistics strategies include the following: * Enabling the trader to receive the products back from the consumer or send the unsold merchandise back to the manufacturer to be taken for sorting or recycling and reducing the overall expenses for an enterprise. * Reverse logistics can be valuable in maximizing the product life cycles, retainable practices, supply chain complicacies and customer preference that needs to be improved to maintain growth and productivity. * The gains can comprise maximizing speed of production, reducing expenses (administrative, transportation, repair, aftermarket maintenance and replacement) retaining consumers by enhancing the service objectives and catering to sustainability objectives. * A greater value can be obtained from the returned or used products than wasting manpower, cost of the raw materials and time needed in the original supply chain solutions. * Enhanced customer satisfaction and loyalty by giving greater attention to the faulty goods and repairs of the merchandise. Reverse logistics can also result in gaining feedback to make necessary enhancements and improve the overall understanding of the actual reasons for product returns. In addition to that, not all distribution networks are established to manage the product that comes back from the field. There are situations when boxes that are returned often wind up on the warehouse shelves that takes up valuable space, depreciating fast and challenging the operational efficiency. Today service providers of system integration solutions have come up with advanced reverse logistics programs that offer the following services: * Detrash and destruction of returning materials (CDs packaging materials, etc.) * Date code based warranty assessment * Test diagnostics and repair * Software and/or firmware upgrades * Refurbishment * Repackaging * Warehousing and Distribution * Legally compliant disposal (i.e. WEEE and SB2050) * Web-based inquiry and reporting The advanced reverse logistics system is designed especially to manage the supply chain process in a logical and efficient manner. The service providers have expert staff having the required experience in refurbishing a vast array of products in minimal time and then putting them back into the field tested and up to our clients’ cosmetic standard generally within 24 hours or less.