Generally, the companies give more importance to the forward supply chain more than the reverse logistics. The reverse logistics can support the company in getting additional revenue and the work which they do is very beneficial to the company. The activities which fall under the retail reverse logistics are repaired, product recalls, resale, service end returns, within warranty recovery, and many more. If you notice they are the team who interact with the customer more and they can help you to have more happy customers. Let us see some five areas in which the company should improve the return management.
- Returns: This is the first step in the return logistic system process. The customer returns the product to the company due to many reasons like they have received a damaged product, defective piece, or the product has not met the customer expectations. The company should have a proper process in which they can receive the returned product, check the product and do all the required testing.
- Recalls: Another part of the return process is the recalled product. In the reverse logistic genre, the more critical and complex part is the recall process. The products which are included in the recall process are defective or hazardous and linked to government regulations. The process should be set up in such a way that as soon as the part is received and once the verification is done immediately the replacement should be dispatched.
- Repair: It is not compulsory that all products which are return back have to be sent to landfills. If the repair is small then repair or re-manufacture the product and send it back for sale.
- Repacking: Most of the time the product which is returned is not defective the reason for return is that the customer has not liked the product. In such cases, once the product is returned it is repacked and sent back to inventory.
- Recycling: Here focus is on the end-of-life parts. The team tries to reuse the same parts like different metals found in the circuit board etc.
Each company must focus its attention on reverse logistics to earn additional income.