Reverse Logistic Management: Strategic Steps Ensuring Customer Loyalty Logistics and supply chain is the lifeline of every business organization. However, customer is a vital constituent as far as the business lifecycle is concerned. To survive and stand out in an aggressively competitive business environment, step and strategies taken by the business enterprise must be with the customer in mind. With the developments in both technology and the market trends dependent on the customer demands, business enterprises both large and small should cater for the return of merchandise or goods from the customer or retail markets.
The challenge faced by the organization is to efficiently and cost-effectively collect and process the returned goods and materials thus meeting customer requirements of high service standards. The process, which involves of planning, implementing and controlling the flow of returned goods and merchandise for recapturing the value through remanufacturing, refurbishing or disposal is termed as reverse logistics. Such effective returns management practices will pave way for efficient management of operational and customer retention issues. Nevertheless, reverse logistics is more than returns management and includes methods to avoid returns and aftermarket supply chain issues.
Customer loyalty and retention being the vital factor in the business scenario, reverse logistic is considered as a value added process for items received from the customer. Organizations tend to invest in a fully integrated reverse logistics management tool, which would incorporate the process of repair, calibrate& return and also provide an end-to-end visibility throughout the entire reverse supply chain. Further, with a high degree of performance the reverse supply chain provides a platform for connectivity for exchange of information, authorization and updates of returns.
With reverse logistics showing reusable ways and means for unutilised and depreciating assets, organizations have a number of advantages in engaging a reverse logistics management tool. This helps to maximise infrastructure investment by integrating with existing systems. Further, it provides connectivity through all components of the value network thus enabling a through and through visibility for the customer to trace the products. The reverse logistic management ensures a performance based billing with order and return placement at the customer locations. Reverse supply chain through the automation of business processes and early notification through real-time reports works towards cost reduction, saves time and warehouse space. Through an integrated reverse logistic and supply chain management systems it is possible to refurbish and recycle a large amount of products to meet the retail market demands and as well as work towards a safer and greener environment.
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Published on Feb 14, 2012
Logistics and supply chain is the lifeline of every business organization. However, customer is a vital constituent as far as the business l...