What is Reverse Logistics?

According to the Reverse Logistics Association, the term “Reverse Logistics” is “all activity associated with a product/service after the point of sale.”  More specifically, it is the process of attempting to recapture value that is lost once an item is returned.  

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Returned products are routed towards value-added supply chains that maximize your recovery rate and minimize the amount of waste produced. Possible destinations can include return-to stock (RTS), return-to-vendor (RTV), refurbishment, or recycling.

The Rise of Reverse Logistics and Customer Returns

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According to Invespcro, 30% of products ordered through an e-commerce platform are returned. This accounts for $400 billion worth of returned inventory annually. With retailers shifting towards giving their customers free shipping and free returns, the growing problem of customer returns is only going to increase.

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Retailers often neglect or don't have reverse logistics processes in place to tackle the growing problem of returns. Retailers not having a methodology of processing returns results in the loss of millions of dollars of potential value. Having a reverse logistics process in place leads to reduced costs, higher sustainability metrics, and maximum recovery.'

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Do you currently have reverse logistics program in place today? If not, schedule a demo for free today to see how Patturn can help you make better business decisions.