Reverse logistics is the process of moving products from the point of consumption to the point of origin to recapture value and ensure proper disposal of the products, rather than turning them into waste. You need to be very smart about your supply chain to optimize all your products and their movement, may it be forward or reverse logistics. While forward logistics is something that every organization is working on, you also need to be concentrating on reverse logistics management to know which products are in the pipeline and wheat should be done with those products that are not useful anymore. This is where the five R’s of reverse logistics comes to the scenario – returns, recalls, repairs, repackaging and recycling.
This is the first step in the entire reverse logistics flow. This is when customers start returning products. It may be due to a variety of reasons like the products being damaged/defective, seasonal, in excess, or may fail to meet expectations. In order to handle these returns effectively, you need to have processes like receiving, inspecting and testing products through verification and tracking systems streamlined.
Recalls are when product returning involves a defect or potential hazard that may be subject to government regulations, reporting requirements or liability concerns. This is mainly seen in the case of high-tech devices as they are more prone to faulty electronics, battery problems, construction issues and other potential hazards. To have this system in check, you must be sure to have processes in place to receive, replace, reclaim or resell products. This will help to save revenues and turn negative customer experiences to positive ones, and in turn build trust.
In case the faults seen in the returned products are too severe, manufacturers identify the fault and then repair, refurbish or remanufacture the products to a condition that is more like new. These products are then returned to stock. Or, if possible, manufactures may use some of the functional components of these products for reuse. Reusing materials from returned products is becoming a common practice today.
During testing the returned products, if the result is “no trouble found”, these products are simply repackaged and returned to inventory as soon as possible. It is realized that the return is not because of any kind of faults; it could be only because customers are dissatisfied with the product. However, in case of minor flaws found, the products are repaired, reconditioned and repackaged for resale.
When products reach the end of their life cycle and need to be scrapped, manufactures look for safe, environment-friendly and cost-effective ways for disposing them. This could mean approaching third-party recycling companies to reclaim waste and dispose assets for them. This segment highly sees high-tech devices from which companies are able to retrieve metals like gold, silver, copper, titanium, etc. This helps in minimizing waste and reducing costs.
Without a reverse logistics management in place, you will be investing too much time, money and resources on repairs. Moreover, setting up a reverse logistics process can be time-consuming and complex if it is not a core competency for you. This is when you can outsource these processes to third-parties who can help you improve quality, cost savings, inventory management and a lot more. Jayem Logistics is a name you can rely upon for repairing damaged and defective goods, as they have a skilled team of more than 300 experts who are great at repairing, packaging and shipping. We also have an area of 5000 square meter storage space that is used to provide services ranging in parts recovery, onsite deployment, RMS management, warranty fulfillments and warehousing. All of this and more has made Jayem Logistics the top logistics service provider in the country today.