Organizing Returns Processes With Reverse Logistics
September 1st, 2010 . by Learn For FreeThird party logistics services are shifting focus to reverse logistics, which is the practice of organizing and refining the process of product returns. For a large business to succeed, they must make their returns department efficient in their duty in pleasing the customer at an acceptable cost.
The amount of people returning items is higher than ever. With money tight with most United States citizens, and the Internet providing a common barrier between buyer and seller, there have been high returns all across the board. This means that there must be a system in place to handle excess returns, but also a system to solve the problem of why returns are occurring.
If a customer doesn’t receive a product, the business that shipped it just lost money on shipping and handling. That’s why the process of obtaining the address and organizing the business back end is important. Customers should always verify their address before placing an order, and the database of information should be well laid out, and able to flawlessly print out address labels onto packages. Outsourcing is a good option here for most businesses.
Return departments don’t always just replace a product. Instead, a product may become refurbished and sent back to the buyer. This is popular for heavy machinery such as riding lawn mowers, where replacing the entire machine would cost much more than replacing a simple part. As a result, your business may also need a repair department on staff.
Some of the most successful repair operations in reverse logistics work based on fixing products, and then shipping out refurbished products as new products arrive. This works best when there are few products that a manufacturer offers. An example would be with a router manufacturer: if a router comes in needing a repair, an already refurbished router of the same type can be sent immediately while the old one is fixed. Waiting times are drastically reduced.
Remember that you are competing with other businesses that could potentially take business away as a result of dissatisfaction. One way to reduce confusion or communication errors with customers is to spend extra time making a manual and operating booklet that goes with the product. A mobile phone should have a detailed list of every feature and button. If it doesn’t, the buyer will probably return it and trade it in for a different model that is easier to learn.
In Conclusion
The logistics of returns processing isn’t simple to master. Outsourcing to a third party logistics service is necessary for when you outgrow your basic business model. Third party logistics services seek to save money, not waste it, so they are a great business investment. Consult several for a quote or consultation.
Learn more about Reno, Nevada distribution and in-house logistics.