Benefits of Reverse Logistics
Reverse logistics helps businesses maximize the time-sensitive usefulness of their products. When a customer receives a defective product, the return process can be long and costly, and adds stress for a logistics team unclear on the next steps. But there are many other benefits of reverse logistics that will save your company money and help it run smoothly.
- Inventory Management
Warehouse space costs money. Without an efficient reverse logistics process, returned merchandise waits on the floor taking up space that should be used for sellable products, resulting in inventory reduction. Returning and refurbishing products in a timely manner not only maximizes space in your warehouse, but also allows for a better return on investment when you are able to resell a product quickly.
- Keeps Customers Aware
If the product needs to be replaced, your customer will be asking where they are in the pipeline. With a return strategy in place, you’ll be able to quickly update the customer on the repair or replacement – and they’ll be happy with your customer service.
- Find Inefficiencies through Better Data
One of the benefits of reverse logistics is that a company can better see the issues in their overall process. Systemizing returns to will show you if products are regularly defective or damaged, which provides better insight into your supply chain as a whole. When you’re confident that products are being repurposed or recycled appropriately, the amount of waste will begin to decrease.
- Clients Look for Refurbished Products
Clients have been educated on the benefits and cost-savings of buying a refurbished product. If a manufacturer can turn around an item for resale quickly and efficiently, customers will be happy to save costs, and you’ll be making money twice!
- Opportunity for Proper Recycling and Reuse
While recycling and refurbishing are not new concepts, most companies do not have the systems in place to handle the process efficiently. Instead, they may let defective or unusable product sit in the warehouse while waiting to hear from the manufacturer on next steps. With growing interest in sustainability in all industries, this effort to recycle or reuse will set your company apart from your competition. Take a look at our article on industrial material recycling for more information.
Start Building Your Reverse Logistics Strategy
Reap the benefits of reverse logistics! Returns are an unavoidable part of the industry, and you should be optimizing the benefits of reverse logistics to receive the best return on investment on your products. Many times, this additional work cannot be handled by the in-house logistics team alone. The strategy needs just as much attention as your forward logistics system, so you can be confident you’re getting the most out of your products.
With a third-party reverse logistics provider, you ensure proper repair or disposal of these products. You’ll also be saving money on excess inventory in your warehouse, while providing better customer service to those waiting on an update.
AECI offers reverse logistics and management programs for surplus equipment. We want to help your company efficiently handle customer returns, as well as help manufacturers find clients for their refurbished product. Contact us today for more information on our services.