The Four Main Benefits of Employing Reverse Logistics in the Supply Chain
The management of the supply chain usually ends with the user, following the required item being made and shipped, finally being delivered to the consumer. It is a common fault of many companies to pay an inadequate amount of attention to the returning of products and handling them once they’re returned. In most cases the processes involved are vaguely outlined, and information regarding the existence of returns and which state they are in is hard to obtain. Managers and operative should be able to tell whether an item is to be replaced, repaired, recycled, refurbished or disposed of. The process of reverse logistics takes care of the processes involved in returning products, materials and parts throughout every stage. Taking care of this can have a positive effect on the company’s bottom line. Here are the four main benefits of an optimized plan for reverse logistics:
1.Improvements in transparency into the status of the item being returned. A process needs to be created whereby the user can calculate the total number of items needed as a whole or incrementally. This will allow the firm to save their manufacturing parts because they know of any parts to be collected and reused at a later date.
2. Recognize where waste and inefficiencies are occurring. Due to the fact that reverse logistics is an indispensable aspect of the lifecycle, it is important that the area which gets weighed down, including refurbishing and repairs, are remediated. This accelerates the process of getting products of the required quality back to new customers or end users while avoiding escalating costs.
3. Keeping consumers up to date on the status of their purchase as it passes through. It won’t be every product that requires replacement or repair, but end users are in need of knowing at which time their product will be fixed. The provision of transparent practice allows for the creation of clear communications with the consumer.
4. Optimized handling of any raw assets being returned. Questions of what to do with the asset being returned include whether it will be moved on as a raw material or recycled. It is important to establish relationships with waste collection specialists, whether they are in house or third party, in order to received good standards of assistance in efficiently and sustainably disposing of assets.