What is Reverse Logistics?
According to The Council of Logistics Management, the full definition of reverse logistics is the process of implementing, controlling, and planning the cost-effective flow of finished goods, raw materials, and in-process inventory. The flow is from the point of consumption (i.e., the customer) to the point of origin (i.e., the manufacturer), to properly dispose of these or to recapture value.
Returns, a growing tendency in in-store and online retail
Reverse logistics encompasses all the supply chain processes for returned products and materials traveling “backward” through the supply chain. Hence the name reverse logistics.
This includes anything from returned goods, disposal/recycling of packaging materials, responsible disposal of previously sold products, etc.
Proportion of returns among total retail sales in the U.S., in %
Source: NRF (National Retail Federation) and Appriss Retail
As the share of e-commerce and drop-shipping continues to increase drastically, and as customers expect to be able to return products, online retailers are now facing a challenge when managing and creating added value from the high volumes of returns.
Proportion of returns for online sales in the U.S., in %
Source: NRF and Appriss Retail
Supply chain actors and manufacturers are waking up from years of “sweeping things under the rug” and are now treating Reverse logistics as an important aspect of their business proposal.
Categories driving more return, in %
Turnkey solution for reverse logistics and returns
BRAND & BUSINESS INCUBATOR has set up an all-inclusive and fully integrated return management process for its existing customers and for new clients. We follow specific guidelines built in partnership with our clients that include, but are not limited to:
- Insert return instructions in outgoing orders,
- Receive and segregate the returned products,
- Discard and recycle damaged products and packaging,
- Test the product following the company instructions,
- Follow instructions if product fails the tests,
- Clean and refurbish tested products,
- Repack the refurbished item and add new accessories as necessary,
- Repack and restock the product,
- Donate the products to Charity,
- Systematically recycle returned products,
- Resell returned products to discounters,