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Ensuring Effective Reverse Logistics Management.....

    -    
Reverse logistics is a crucial and growing part of a company’s supply chain process and involves the business of returning, exchanging, repair, refurbishment and remarketing products. With reverse logistics management, companies can ensure you know what is coming back by automating returns across different channels. Return logistics offer an opportunity for improving visibility and profitability while lowering costs in the supply chain. With an integrated reverse logistics management tool, there is complete end- end visibility throughout the complete cycle and includes all parties involved in the reverse supply chain flow. Earlier, companies paid scant attention to reverse logistics, but with the passage of time there is greater attention being paid to areas that impact reverse logistics as well those areas that help build stronger relationships with customers.

Reverse Logistics can be a strategic asset that can reduce costs, instead of the necessary evil that it is considered to be. The main feature in reverse logistics is the source and reasons for returns. By understanding the reason for the occurrence of returns, it is possible then recognize the various prospects for enhancing the decision-making and supply chain process. Some of the primary challenges that are faced reverse logistics are tracking of goods while they travel through the returns process, complying with the government regulations, and adjusting to the increasing customer pressure.

How to ensure effective returns management
To ensure that there is neither wastage nor any shortage it is necessary to keep in mind the practices. Your enterprise needs to know of the best returns management practices that should be employed by your enterprise to ensure effective returns processing. It is therefore necessary to have a suitable returns policy that can strengthen relationships with key customers. These policies improve your firm’s profitability by keeping fresh product in the marketplace and by efficiently managing the operational logistics of handling returns. If proper policies are in place it helps in ensuring that products that need to be resold needs to be placed into the forward order fulfillment supply chain and product that requires refurbishment or remanufacturing needs to be identified so as to maximize value and get back the cost faster. Quality control initiatives in the manufacturing and distribution processes can help avoid returns. The cost and customer dissatisfaction associated with returning product damaged in transit can be completely avoidable with an effective returns management.

A vital step in ensuring effective reverse logistics is choosing a solution that manages the entire process of returns logistics in an efficient manner. This can better customer relationships and enhance the overall profitability of a firm.


 
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  Published Date - January 20 2012
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  Mr. Martin Well
 
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