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5 Things You Should Know About Reverse Logistics

On average, around 30% of products purchased by a consumer are returned to the manufacturer. There are tons of reasons why someone may need to return a product. Regardless of the reason, the return of products is an important part of running a business. Without a proper return policy, companies face losing consumers, which ultimately is a loss of profit. The entire process of returning products back to the manufacturer is actually known as reverse logistics. So, what is reverse logistics exactly?

To learn more and why this is necessary, keep reading!

What Is Reverse Logistics?

Where a standard supply chain is responsible for distributing goods, reverse logistics is when the cycle is reversed.

By this, we mean that a product is returned to the manufacturer from the buyer. There are several reasons why a buyer may return the product, and we will go over some of these.

1. Products Can be Returned Or Disposed Of

Since it includes a product being returned to the seller, there are a few options for what the seller can do with the returned product.

If the item is in good condition, the seller or company has the ability to put it back into inventory. If it’s damaged, the company will most likely dispose of it.

2. Returns Management Is a Role in the Company

While you know what reverse logistics are, you may be wondering who takes care of it.

Returns are taken care of by returns management. Returns management is the same as managing outbound shipments.

3. There’s a Variety of Types

When it comes to reverse logistics, there isn’t just one kind.

Here are some types:

  • Returns
  • Remanufacturing
  • Packaging
  • Refurbishing
  • Delivery failure
  • End-of-life goods
  • Rentals and leasing
  • Repairs and maintenance

The type you use will completely depend on your situation. With so many different things that can happen with products, there is not a “one size fits all” solution.

4. Huge Effect on Supply Chain Management

Companies must always be prepared for what happens with a product after a sale.

Things like repair and warranty policies are in effect so the customer can be truly happy with the products they purchase.

5. Helps Companies Run Much Smoother

When you have a plan for reverse logistics, you can make the supply chain run as efficiently as possible.

If there is no plan in place for the return of products, the customer may be left unhappy. Unhappy customers will have a ripple effect on other potential customers.

Reverse Logistics Is a Huge Part of Running a Successful Business

Without reverse logistics, your company is not going to run as smoothly as it could. It is essential to customer satisfaction. 

So, what is reverse logistics? It’s simple! It is the cycle that happens if a product must be returned to the manufacturer.

To learn more about logistics services, reach out to us today!

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