Executing Returns and Reverse Logistics

Handling the return of materials and products has been a weak link in an organization's cradle-to-cradle supply chain management.

Lack of focus has resulted in customer service issues, loss of rapid reshelving for viable products and materials, the growth of inventory levels due to the converging returns and newly manufactured products, space challenges, and lost savings. Now many organizations are also facing the challenge of handling the reverse flow of materials to meet recycling initiatives with minimal to no reverse logistics process in place. This information defines returns and reverse logistics and discusses the many opportunities in customer service recovery and the capture of useable products to reshelf or reuse. The topic looks at the cost factors in doing business, as usual, and the cost to implement lean, efficient, and effective management of the reverse logistics process and its importance in successful supply chains. There are many best practices available to support introducing a new process or processes or improving on existing returns methods and reverse logistics. Establishing key metrics for the initiative and reporting on improvements will have all of the decision-makers smiling. Effective management of returns and reverse logistics will take some work, but the return on investment is high.