Published on
February 7, 2020

What is Reverse Logistics?

assorted boxes on shelves Photo by noodle kimm on Unsplash

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.  

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

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.

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.'

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.

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