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The Relation between Reverse Logistics and Supply Chain

by:VIPUTRANS     2020-09-24

Reverse logistics plays an important role in supply chain solution. This is an after sales procedure where goods are returned by the customer to the distributor and ultimately to the manufacturer. Reverse logistics helps manufacturers to understand the customer's reactions, the quality of their goods, performances of the vendors and the effectiveness of the marketing strategies.

Reverse logistics facilitates effective returns management. With this process the manufacturers can remove the products from areas with low demand and ship it off to other destinations with a higher demand for the same products. This helps in reducing costs on transporting goods to destinations where there is no demand. Reverse logistics helps manufacturers identify their customers' options and choices. Manufacturers can hit the jackpot by studying the purchasing patterns and modifying their marketing strategies in accordance and garnering more profits.

As reverse logistics is still undergoing development manufacturers are yet to reap the complete benefits of this process. Businesses are still concentrating on tools that help to forecast procurement and inventory management of spare parts, rather than identifying and managing the source from where the maximum return goods are anticipated. Returns management also becomes a complex and cumbersome process because of the various compliance regulations applicable. The disposal of goods that have hazardous potentials is equally important to understand and incorporate into reverse logistics management.

Thus manufacturers ideally need tools with flexible, collaborative, integrating and real-time analytical features that help provide updated and accurate information to facilitate manufacturers to make quick and correct decisions. The supportive returns management solution proves its true worth when the manufacturers can make the right decisions before the goods are returned to the reverse logistics cycle.

As businesses are realizing the scope of reverse logistics they can seek assistance from the providers offering these services. The providers offer secure, efficient automated solutions as per the demands of each customer. All the tasks right from warehousing, transportation to the final stage is taken care of meticulously providing customers the facility to gain profits and also render prominent customer satisfaction.

The returns management solution is a worthwhile investment that helps minimize the cost of redundant products, fulfill customer demands and reduce the overall cost of the returned goods with greater profit margins. It also helps accelerate productivity of the store associates and warehouse staff. Thus reverse logistics helps businesses evaluate their position and utilize the opportunity to provide goods measuring up to customer expectations. Businesses can enjoy exclusive customer loyalty and retention privileges without bearing any losses with reverse logistics.

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