The Important Terms of Reverse Logistics !!

Reverse Logistics

Today, we have chosen this topic to give our Customers the overview of Reverse Shipping, and the issues/complexities involved. This gives you an insight on How the Reverse Logistics works and the details of this process.

There are also several important Points that a Seller should remember while going through this Reverse Shipping Process. It's highly recommended to the Sellers to be prepared for any issues during this process. Since we generally see the Reverse Logistics involve more complexities compared to the regular forward shipping.

Before we begin, let's understand the meaning of the Reverse Logistics !

Reverse logistics is the process of shipping products/items from the point of consumption to the point of origin to either get a refund or for repairs or recapture value and ensure proper disposal of the products, rather than disposing them into waste. Seller need to be very smart about his/her supply chain to optimize all the products and their movement, may it be forward or reverse logistics. As everyone is aware that, is something that every Company is working on, we also need to be concentrating on reverse logistics management to understand basically which products are in the pipeline and what exactly should be done with those products that are of no use anymore. This is where the five R’s of reverse logistics come into picture. Those are – Returns, Recalls, Repairs, Repackaging and Recycling.
Returns
This one is the first and most crucial step in the entire reverse logistics flow. This is when customers start returning products which they are not satisfied with. It may be due to a variety of reasons like the products being damaged/defective, inappropriate size, wrong product delivery, seasonal, in excess, or may fail to meet expectations. In order to handle these kind of returns effectively, sellers must have processes like receiving, inspecting and testing products through verification and tracking systems streamlined.

Recalls

Recalls are when product returning involves a defect or potential hazard that may be subject to government regulations, reporting requirements or liability concerns. This is mainly seen in the case of high-tech devices as they are more prone to faulty electronics, battery problems, construction issues and other potential hazards. To have this system in check, you must be sure to have processes in place to receive, replace, reclaim or resell products. This will help to save revenues and turn negative customer experiences to positive ones, and in turn build trust.

Repairs
In case the defects seen in the returned products are too severe, manufacturers identify the fault and then try to repair, refurbish or remanufacture the products to a condition that is more like new and later sellers can also re ship such products if the consumer is ready to accept the repaired products. Else these products are then returned to inventory. Or, if possible, manufactures may use some of the functional components of these products for reuse. Reusing materials from returned products is becoming a common practice today.
Repackaging

During testing the returned products, if the result is “no trouble found”, these products are simply repackaged and returned to inventory as soon as possible. It is realized that the return is not because of any kind of faults; it could be only because customers are dissatisfied with the product. However, in case of minor defects found, the products are repaired, reconditioned and repackaged for resale.
Recycling

When products reach the end of their life cycle and need to be scrapped for whatsoever reasons, it is advised to look for safe, environment-friendly and cost-effective ways for disposing them. This could mean approaching third-party recycling companies to reclaim waste and dispose assets for them. This segment distinctly sees high-tech electronic devices or instruments from which companies are able to retrieve metals like gold, silver, copper, titanium, etc. This helps in minimizing waste and reducing costs.

Without a reverse logistics management set in place, sellers will be investing too much time, money and resources on repairs of the products. Repairs are not advised for all the return products. Moreover, setting up a reverse logistics process can be time-consuming and complex if it is not a core competency for your Company. This is when you can outsource these processes to third-party logistic providers who can help you improve quality, cost savings, inventory management and a lot more.

Final Point:

A third party shipping service, like eCourierz.com, allows you to find the lowest rates and take advantage of commercial pricing with no subscription fee. This makes for a more profitable, and less complicated forward shipping process.

eCourierz.com provides live shipping calculation to ensure you get the best price while still using trusted shipping services. You are able to compare and select the best rates immediately. It also gives you access to a wide variety of shipping services and discount pricing without having to go through additional sign ups or approvals.

By taking advantage of services that allow you to minimize your shipping cost, you will maximize the profitability, maintaining your edge in the competitive world of ecommerce. Contact us today to make sure you’re getting the most value out of your ecommerce business.