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Inside Business

The Components of Reverse Logistics

Earth Model with BoxesMany people have experienced returning products they recently bought for one reason or another. While most businesses put more focus on putting goods in the hands of customers, they should also pay attention when the reverse happens.

All companies have to deal with reverse logistics. ReverseLogix explains that this is the movement of goods from the customer to a business instead of the other way around. Here are the components and process involved:

Customer service

The first thing to do is to call the business or go to their customer service department. It may be an in-store counter or some type of online service. Call centers, e-mail, and online chat services are the most common of these online avenues. In all cases, the customer should have a positive experience.

Shipping

The next process in product returns is getting the product from the customer back to the seller. The seller may ask the customer to mail it back or bring it to an authorized site. Some companies may even offer to pick it up from the customer.

Storage

The business needs to have a way to track, tag, and store the returned products. It may be to a warehouse designed for that purpose. Ideally, the warehouse has an automated way to organize and locate the goods as needed.

Processing

The returned goods cannot stay in the warehouse permanently. An efficient reverse logistics system will include a way to sort the goods according to their condition. Some goods may be in good condition and sent to resellers. Others may require some repair before they’re sold again. In some cases, the goods may be a good source of replacement parts. This means just a few of the returned products have to go to landfills.

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Reverse logistic processes is a business in itself. It may be too much for a business to handle in-house. A reverse logistics service provider can handle all these for a business. With proper management, repairing and reselling returned goods could actually be profitable.

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