How To Handle Reverse Logistics In Large Business
Sep 2nd, 2010 Posted in finance | no comment »Third party logistics services are shifting focus to reverse logistics, which is the practice of organizing and refining the process of product returns. For a large business to succeed, they must make their returns department efficient in their duty in pleasing the customer at an acceptable cost.
The Internet has acted as a marketplace and a hub for business, but it also leads to a higher rate of returned products. Products might be different than what the customer expected, they may rethink a purchase, or it might just be defective. Whatever the case may be, any legitimate Internet presence deserves a returns policy and procedure that can handle even the most massive of recalls.
If a customer doesn’t receive a product, the business that shipped it just lost money on shipping and handling. That’s why the process of obtaining the address and organizing the business back end is important. Customers should always verify their address before placing an order, and the database of information should be well laid out, and able to flawlessly print out address labels onto packages. Outsourcing is a good option here for most businesses.
Return departments don’t always just replace a product. Instead, a product may become refurbished and sent back to the buyer. This is popular for heavy machinery such as riding lawn mowers, where replacing the entire machine would cost much more than replacing a simple part. As a result, your business may also need a repair department on staff.
Some of the most successful repair operations in reverse logistics work based on fixing products, and then shipping out refurbished products as new products arrive. This works best when there are few products that a manufacturer offers. An example would be with a router manufacturer: if a router comes in needing a repair, an already refurbished router of the same type can be sent immediately while the old one is fixed. Waiting times are drastically reduced.
Handbooks that are well laid out can work wonders for returns. Furniture companies can sometimes be notorious for including instructions that don’t make sense, or missing out on parts that should have been shipped. A manual will let the buyer know what they need and how they need to operate or assemble the product. If they become lost in the process, they are more likely to return the product and buy a different brand from a competitor rather than work it out.
Final Thoughts
The logistics of returns processing isn’t simple to master. Outsourcing to a third party logistics service is necessary for when you outgrow your basic business model. Third party logistics services seek to save money, not waste it, so they are a great business investment. Consult several for a quote or consultation.
Learn more on outsourced distribution and fulfillment and in-house logistics.
