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The Four Fundamentals of Reverse Logistics Management


In this cost-conscious economy, consumers want full lifetime value for their products. No manufacturer can afford aftermarket services that fail to address higher customer expectations, increasing environmental concerns, and a growing need for cost efficiency. Increasingly, intelligent enterprises are discovering the tremendous potential for long-term customer loyalty and revenue growth in more effective reverse logistics processes. Sometimes merchants have difficulty in determining costs and profits per transaction, and a general perception is that the whole process is unpredictable and reverse movement of goods cannot be planned. This has kept many companies from looking at reverse logistics as anything more than a painful duty. However, at Premio, Inc. we see an opportunity to help our customers re engineer the entire process with an eye toward minimizing costs and maximizing value. We work closely with our customers to find the unique opportunities and challenges for reverse logistics, and provide a smart combination of people, process, and technology as the best means of resolving issues and turning reverse logistics into a revenue driver.

Critical Elements to Reverse Logistics

There are four key aspects to consider:

  • Customer Support (helpdesk)
  • Storage and Warehouse
  • Global Logistics
  • Aftermarket Services (repair, upgrade, refurbishment, and disposal).

Unfortunately, many companies continue to focus on the forward flow of goods and ignore the critical aftermarket support customers expect. This often leads to several issues, including non-compliance with e-waste regulations, poor customer service, reduced asset recovery, and higher overall costs. All lead to a bad consumer experience, decreased competitiveness and shareholder value. For global businesses, other challenges include inaccurate reverse support planning when the returns volume varies from region to region, the complex tax and import guidelines that affect returns and repairs, and the high labor costs that encourage replacement rather than repair. Poor reverse logistics is the reason many multinational businesses struggle to service the global market, even as consumers demand more and better services.

Contrarian Thinking Compels Successful Reverse Logistics Management

To drive down costs and create the customer experience that will retain more informed customers, retailers and manufacturers must realize the benefits of superior aftermarket services and take a “one company” approach to all reverse supply chain operations and aftermarket support strategies. Especially in such difficult logistical conditions like global business, aftermarket services features like centralized return hubs and repair facilities are critical. Companies that do not emphasize reverse logistics will soon be forced to do so under the impetus of environmental regulation, customer expectations, and simple competitive survival. The sooner the value in better aftermarket services is realized, the sooner companies can reap the very real profits to be gained

Kiosk Case Study