However, it has been observed that companies that have an effective reverse logistics system can benefit from the return process in a number of different ways as listed below. Setting up reverse logistics provides companies with the following advantages: Minimise the environmental impact. Reverse Logistics. Reverse logistics is the process involving the return movement of goods away from their final destination for the purpose of capturing value or proper disposal. Improving Reverse Logistics Management. Our updated 2018 reverse logistics diagnostic toolkit is available to download and use free of charge via the links at the top of this page. What Is Reverse Logistics? If you want the most cost-effective returns process, then you need to have key performance indicators (KPIs) in place to measure your Reverse Logistics. RLA is a member driven, global trade association for the returns and reverse industry. RL Magazine is a monthly digital publication of the Reverse Logistics Association and is the only magazine in the world completely focused on the issues and next/best practices of the Reverse Logistics industry. Companies such as goTRG and B-Stock Solutions offer reverse logistics solutions they say can boost recovery rates, reduce dependence on liquidators and automate the process of disposition. Planning for products to return to your company (returns management) may seem counter-intuitive.Still, for companies that offer rentals, product pick-ups, or any type of shipment logistics management, the path backward can be just as costly as the path forward. Step 2: All the products returned are consolidated as per company’s policy and quality checks are performed. Reuse of materials in manufacturing processes helps stave off the misuse of unprocessed raw materials and requires less power. For example, reverse logistics management and protocols are key to recall management too, which is a key aspect of a successful food logistics strategy. The reverse logistics process is fairly easy to understand once you’ve broken down the 6 steps companies follow to carry out this specific management strategy. Reverse logistics is more complicated than forward logistics. According to an industry survey, 60% of active online shoppers say that free returns are a vital part of a good returns experience. If your business doesn’t have a great reverse logistics plan, you could be losing revenue and not even realizing it. The following are common types of reverse logistics. The purpose of reverse logistics is to recapture value or properly dispose of a product. "They’re taking boatloads of these returns that are being sold to … The RLA offers information, research, solutions, and facilitates networking introductions for manufacturers, retail companies and third-party providers. This includes returns, … The Reverse Logistics research team would like to welcome you to our new reverse logistics website. Service Returns management has been a Reverse logistics and warranty repair center for over 30 years. Reverse Logistics Magazine. If it is incorporated as a key function of the business with the right investment in technology and support networks, it can operate as a major asset and value addition to the brand. Well, it’s time to handle reverse logistics as an integral part of your supply chain management strategy. That will put a significant strain on all networks as data spikes exponentially and approaches zettabyte levels annually. 3PLs Make Return Logistics Easier Expak Logistics is a third-party logistics (3pl) company working on the industry’s cutting edge, helping retail businesses streamline their reverse logistics operations, controlling costs and creating a vastly more efficient operation in the process. Knowledge concerning the challenges of reverse logistics facing manufacturing pharmaceutical companies in the city of Tshwane is very limited and motivated the researcher to … The function has been around since the Phoenicians began shipping amphorae of wine to Rome in 1,500 BC.. The reverse logistics process is executed in the following manner: Step 1: The products to be returned are first retrieved from the customer or the warehouse. There may be as many as 30.7 billion IoT devices in use by 2020. Reverse logistics is any process that involves moving things from the customer back to the producer. We have developed procedures, systems, testing equipment and recordkeeping that have met the quality standards of consumers, retailers and manufacturers alike. Reverse logistics also enables companies that rebuild, refurbish, or repair products—whether automobile parts remanufacturers or telecom or computer companies—to more swiftly recapture value by getting these products back into the marketplace faster. But not all reverse logistics companies are created equally, so before you Logistics in general has been estimated to take up about 10.7 percent of our nation’s economy, but the portion of that taken up by reverse logistics is almost impossible to identify. Reverse Logistics is an absolute must for any business that has a returns policy. In an ideal world, products would move from the manufacturer’s production lines, onto the subscribed for logistics solution and reach the customer. It can include returns from e-commerce and retail, as well as components for refurbishing and remanufacturing. Benefits of reverse logistics. Reverse logistics is the movement of goods in the supply chain from their end destination (such as the customer) backwards. For some companies reverse logistics can be a nightmare as it’s typically not very well managed and that mismanagement can represent a significant amount of the supply chain cost. Since reverse logistics involved many more steps and processes as materials move back through the supply chain, it’s understandable that it takes up a notable amount of all logistics costs in the U.S. Partnering with a reverse logistics company is a great move for your retail business. There is a complexity involved with the reverse logistics process that some companies manage better than others.. Everyone Wins With Reverse Logistics Management. Under our Warranty Returns Program, our specialists will manage the return materials' authorization, picking up recalled items and installing new, while disposing of defective parts or units at our facility. Logistics refers to moving products or goods forward in the supply chain toward the customer, typically considered the final destination.. 34.3% of the supply chain executives said they didn‟t have the right system in place, more than one third said company policies inhibited them to do so. Reverse logistics is like cleaning up the morning after a big party - a mess that no one really wants to face, resulting from things that are left over or ill-used from the day before.. At Reverse Logistics USA, our mission is to consistently deliver beyond our client expectations so they … This includes business processes that involve transport from distribution endpoints such as retail locations back in the supply chain to locations such as warehouses and factories. Ultimately, having a 3PL provider manage your returns does more than just free up your team to focus on growing your business. The right approach to managing reverse logistics companies must leverage these key metrics: Total maintenance costs. Waste not, want not. A decrease in prices: Companies that plan ahead for returns and make sure to make the order right can benefit from the return process by observing a decrease in the cost of shipping, tech support, transportation, etc. The discipline of Reverse Logistics is as important to a business’s bottom-line as the usual management of procurement, logistics and spend analysis. Reverse logistics is extremely important to most businesses because it can help you tackle some of the greatest threats the industry will face by 2020.. Reverse logistics is the process related to the reuse of products and materials, and it is arguably one of the most important aspects of the supply chain when looking for new areas to save money and increase efficiency. Reverse Logistics was a term first used in the 1990s and refers to the process of moving products or goods backwards in the supply chain. Though reverse logistics is a relatively new concept, it is gradually becoming a full-fledged operation for … The reclamation of valuable parts, including OEM parts, can be a source of supplies for future production in your company. companies why they didnt have a strong reverse logistics program, nearly 40% said returns management didnt seem as important as other issues. The goods move from the end user back to the seller or manufacturer. Reverse Logistics USA is a company you can trust on when sourcing and selling on the open market. So what are the benefits of reverse logistics management? Committed to design and operate sustainable cost-effective reliable solutions for enabling producers to be fully compliant and provide services for EPR, while co-existing with informal channels and reaching out to 2 million+ individual households and consumers through awareness programs. From retrieval to repair and screening to recycling, understanding every step is important when it comes to realizing the true value of hiring a company like Direct Drive Logistics to provide you with reverse logistics services. Reverse logistics comprises of activities, which includes remanufacturing, redesigning, and refurbishing. Reverse logistics is the process of moving goods from final destination and receiving returned products/ materials for proper disposal. With the growing need for businesses to invest in new opportunities for logistics and supply chain development, several companies are turning to new capabilities such as reverse logistics. Retailers want shipping companies that create new efficiencies and cut costs. This practice will directly benefit society as a whole. As defined by Reverse Logistics Magazine, reverse logistics is “the process of implementing and controlling planned cost efficient, effective flow of in-process inventory, raw materials, finished goods and all related information from the point of consumption back to the point of origin for the intended purpose of recapturing value or ensuring proper disposal.” What is Reverse Logistics? Not only will your customers be happier with the way their returns are processed faster, you’ll quickly see the impact of that swift returns management on your bottom line. It ensures you maintain a strong relationship with customers by creating a positive brand experience. Our Reverse Logistics service covers all of your return, surplus and disposal needs and the range of services includes: Warranty Returns. 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