Reverse logistics deal with the management of resources from the consumer or vendor to the place of its origin, yes the manufacturer. This is indeed a very important factor to let him/her or, the organization get proper feedback about the products. In short, the manufacturer would know about the ‘what', ‘whom', and ‘whys' of his/her products.
Though this is very important in the whole supply chain management yet the process of reverse logistics management is still at its nascent stage. In fact, most of the things are still done manually. Automation of the whole process would go a long way in garnering revenues for any business house in the long run, if not in the very first place.
With the growing popularity of the reverse logistics process, nowadays there are special service providers that take care of your returns and analyze the causes and effects accordingly. Most of these management groups resort to automated return-to-vendor credit process that take care of your subsequent transactions and also sees to it that your revenue gets doubled in the consecutive years.
Well, so why is it so important to know about your returns or, in other words why is reverse logistics so vital in the whole supply chain management? The answer is simple; it is because by identifying the reasons for returns you can monitor the quality of your products. You can also learn about your respective vendor performance and also how the customer reacts to your products and whether your marketing strategies are on the right track.
This means that you can get back your inventory where it is not required or not on demand and get these products shipped to destinations where they are required. Precisely, this means minimizing costs on obsolete goods and shipping to the wrong places. And money is indeed the foundation of all business ventures.
Reverse logistics ensure that your customers' choices and preferences are always taken into consideration, which is important for the success of any business. It reveals things like customer purchasing patterns, and streamlining the return process for proper implementation of the marketing plans in the future.
Quick asset recovery is an important outcome of this service. This means that the returned products can be re-routed to their place of origin for reselling or for liquidation. Also by availing the services of a reverse logistics management group you can save on additional shipping costs, as the service provider would take care to integrate returns with other trading partners with minimal shipping expenses.