Using Reverse Logistics To Lower Operating Costs And Improve Profitability

Solutions for returns management are being put in place by many companies in an effort to lower their operating costs and improve profitability

. From recalls to damaged merchandise and salvage to the disposal of out of date equipment, the information needed to handle returns must cover all the critical factors. The origin, reason for return, refunded credits and value are all part of this information that is essential to the reverse flow of the product.

The process of managing returns has become time consuming and arduous due to the thorough checking operations that are a crucial part of the return process. The transportation of the items necessitates a vast amount of paperwork. Companies are beginning to see the need for special service providers to handle the returns and analyze the reasons for and effect of the returns.

Why is managing returns so important to your company? For one, it shows why products were returned and allows monitoring of the quality of the products. It also allows companies to see if their marketing strategies are working. In order for any business to succeed, a company must be in tune with what their customers want and what they choose. Return logistics provide information for companies about their customers purchasing habits and it creates efficiency in the return process. As a result, companies can better implement marketing plans for the future.

Returns management cannot be stressed enough when it comes to quick asset recovery. Allowing products that have been returned to be sent back to the original destination for resell or liquidation using an automated process will result in gaining revenues - both in the future and currently. Many companies become more concerned with distribution of the product rather than returns. As an immediate solution for costs that are a result of returns, an improvement in the recovery value can be a highly beneficial advantage for companies. The use of reverse logistics provides clear procedures for disposal of returns as well as making it easier for customers to return products if necessary.

Online businesses can utilize this process. Wholesale and retail businesses can use it as well. Providing a solution in a variety of areas including general merchandise, fashion, food, apparel, specialty venues, jewelry, pharmacy and the health industry, are just a few of the areas that can benefit from hiring a company to provide a logistics concept. Disposal methods can include returning merchandise to the vendor for credit, donations, reselling and online auctions. The bottom line - effective return management is what a good service will provide.

by: Neville Jefferson

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