Organizing Returns Processes With Reverse Logistics

Returns processing, also known as reverse logistics, is a subsection of third party logistics that deals with minimizing costs of returns. With as much as 30% of some buyers returning goods, it’s important to have a reverse logistics operation in place for any retail or manufacturing operation.

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.

Repairing defective products is less expensive than replacing a product on average. An example would be with a mobile phone that costs several hundred dollars. Troubleshooting and replacing the defective part would cost much less than having to replace the entire device. That’s why a business needs to setup a repair department as soon as possible.

The refurbished market is a common one. A tactic used in this market is to cycle through refurbished products as needed. If the business selling the product receives a request to repair a certain item, they might instead put the item they receive in a warehouse to get ready for troubleshooting. They would then send an already repaired device back to the consumer to save on repair time. This doesn’t work for personalized devices, but does for most retail electronics.

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

Third party logistics companies have operations, software, and the man power ready to take on any reverse logistics operation. Medium and large businesses are better off outsourcing their operations, rather than attempt to do an in house logistics operation and cause a clear cut disaster instead.

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