{"id":11811,"date":"2021-03-04T09:47:34","date_gmt":"2021-03-04T17:47:34","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/?p=11811"},"modified":"2021-05-24T17:06:10","modified_gmt":"2021-05-25T00:06:10","slug":"tips-to-improve-your-reverse-logistics","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/fulfillment\/tips-to-improve-your-reverse-logistics\/","title":{"rendered":"9 Tips to Improve Your Reverse Logistics Process"},"content":{"rendered":"

2020 saw a huge explosion in the ecommerce space with companies having to scale up their operations to adequately meet the spike in demand. This means having the ability to get thousands of shipments out every day. One of the added consequences of this is having to manage the returns and the reverse logistics process that comes with that surge in order volume.<\/span><\/p>\n

When most people think of logistics they picture the process of moving a product from a seller to a customer\u2014all the steps along the way to get goods to consumers. What isn\u2019t obvious at first is what happens when those items need to be returned. This is reverse logistics (also known as returns management)\u2014any time products are sent to a final destination but need to be returned for any number of reasons\u2014and it is a huge aspect of logistics that is as intricate as it is important. Reverse logistics is an integral part of any fulfillment operation because they are an important part of return policies that drive customer satisfaction. Companies with generous returns policies make it easier for first-time customers to try them out because allowing them to buy their products and send them back if they are unhappy with them. This helps to eliminate some of the risk for the customer.\u00a0<\/span><\/p>\n

But even though reverse logistics is an integral part of an ecommerce operation, it\u2019s generally an overlooked part of the business in regards to the typical focus on efficiency. Here are some key tips to help you improve your reverse logistics process.<\/span><\/p>\n

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Create a Streamlined Reverse Logistics Process<\/span><\/p>\n

A defective product can lead to a poor experience. Dealing with errors is just as important as making sales. If a customer had a bad experience with your product, you have to make it right. By offering options to your customers who wish to return items that make it easier for them, it can go a long way to boost customer satisfaction. These can include providing a full refund no matter the reason for the return, not requiring the original receipt if being returned to a brick and mortar store, not requiring the original packaging, among others. One important step to reduce the messy part of returns up front is ensuring they can be received in batches, together, and separately from your other incoming shipments. Work with your marketing and sales departments to make the process smooth end-to-end by having them provide the labeling method and a dedicated location or address that your shipper can use to keep the returns separate from other inbound shipments.\u00a0<\/span><\/p>\n

Remember, even if you use just one shipper for your outgoing packages, you will likely get returns delivered from USPS, UPS, Fedex and other carriers. You should have relationships with all of them so you can set your preferences and work together on getting your returns delivered in a manner that benefits you the most.\u00a0<\/span><\/p>\n

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Have a Dedicated Reverse Logistics Team<\/span><\/p>\n

Reverse logistics is a cost-center for your business (though indirectly it can be a profit center). It requires specialized skills because the identification, sorting, restocking or disposing of your returned goods can impact the financial KPIs of your business significantly. Evaluating returned products and deciding how they should be handled is often a highly skilled part of the job in returns. By being quick and effective at identifying, repackaging and restocking returned items your customers will benefit from better fulfillment rates and the reverse logistics process earns its keep.<\/span><\/p>\n

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Document Your Reverse Logistics Process\u00a0<\/span><\/p>\n

Like any other critical process area, reverse logistics deserves its own documented workflows, KPIs, best practices and training. As mentioned above, you should already have some highly skilled employees who are doing this right, so they can be better equipped to handle the training and onboarding of new employees.<\/span><\/p>\n

Some of the steps and KPIs your process may be required could include:<\/span><\/p>\n