What is Reverse Logistics?
Reverse Logistics is the transportation of goods from the customer back to the seller or manufacturer after the sale. The value of a product goes down as soon as it enters reverse logistics. Returning an unsatisfactory item to the customer is costly and time consuming for any company. The speed of the item returning to the manufacturer or distribution center varies from company to company. Determining the value of the item is also a large factor in the reverse logistics flow. If you need more info on reverse logistics, check out our complete guide to reverse logistics.
Why is Reverse Logistics Important?
With ecommerce growing rapidly, it’s important that reverse logistic solutions are in place and run as efficiently as possible. In 2016, this study found that 8.89% of goods bought in stores come back as returns, and 30% of goods online are returns. That totals to $260 billion spent on reverse logistics. The high cost is due to an imperfect system in place for nearly all retailers. Business must react to returns rather than anticipate sales. Companies are searching for ways to improve and streamline the returns process without inconveniencing their customers. There is plenty of room for improvement and innovation left to do in the field of reverse logistics.
Benefits of an Efficient Supply Chain
- Reduce Costs- An efficient plan in place for your reverse logistics can mean a huge cut in delivery prices. Planning ahead and reacting to your customer’s returns can save your company time and money.
- React Faster- Juggling a high number of inventory in your reverse flow can hinder your sales number. When original shipping orders and returns are faster, your company can reclaim returns and get them floor room ready at a greater speed.
- Customer Satisfaction- Retaining customers in a competitive market is a tall task, and if a product fails or is a return, it makes customer retention more difficult. With an effective returns system in place, reverse logistics is actually an area you can impress your customer. It shows them you care about your products and will work hard to make any corrections. Even when something goes wrong, there is always an opportunity to keep your customers happy with your business.
Bungii Can Help
If you are looking for reverse logistics solutions in the greater Chicago area, Bungii is a perfect place to start. With flexible and cost effective delivery and transportation solutions, we are a great resource to improve your supply chain. Bungii assists with large item delivery retailers with b2b, b2c, and reverse logistics processes. With same day delivery options and customer support with the highest satisfaction rating in the industry, Bungii is a perfect fit for any business. Visit our business logistics solutions page to find out more on how Bungii can help.