With the arrival of sophisticated management systems, tons of organizations have discovered the method of reverse logistics, i.e. Return goods handling. And therefore the bottom line is that it has developed an advanced technology that supports the method.
Companies with optimized reverse logistics or return goods handling systems usually enjoy a better supply chain that makes it more effective and easy to manage. Additionally, it helps to hold a lower-cost burden, which can offer a plus over competitors.
Few Benefits of Reverse Logistics are -
1. It enhances customer loyalty
When a customer returns a product, your business has a chance to find out the reason behind the returns to make the returns management process more effective. There is no way to deny the fact that replacements of faulty or damaged items and effective repairs are the most basic ways one can use reverse logistics. And this can ultimately attract the customer towards the brand and help maintain your brand loyalty.
2. It enhances sustainability
Return goods handling is far more like recycling. If an item is returned in a fine condition and isn’t faulty, then it is often inspected, the packaging is done again and sold to a different customer. While on the opposite hand, if the item is faulty and requires repairs, then it is often refurbished at a reduced cost.
If the product is not at all in a condition to be sold, then its usable components are often recycled and used.
3. It increases the public perception
There's no denying the fact that the advantages of reverse logistics or return goods handling go to the public's perception at large. And as a result, it recaptures the value of returned goods on the public approval.
4. It offers a better Return on Investment (ROI)
Inventory costs money is one well-known underlying fact. The more inventory there is in the system, the more investment is going to be locked. Be considerate that you're taking steps to extend the return speed of products, which might help to scale back the wants of the system’s inventory. This will reduce the quantity of capital being engaged in inventory, which will further boost your return on investment (ROI) to a good extent.
5. It improves environmental sustainability
From a company's responsibility, nothing is more important than to implement supply chain management that is environmentally sustainable. However, some industry-leading companies take steps to scale back their environmental footprint.
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