How to Use Reverse Logistics to Improve Your Bottom Line
With the holidays right around the corner, businesses and retail stores are preparing for the inevitable wave of returned products that is sure to come their way. In fact, the National Retail Federation is predicting that returns will account for more than 9.3 percent of all holiday sales this year, which will total more than $260.5 billion dollars. If your business is one of the millions preparing to deal with this yearly trend, consider implementing reverse logistics management software to save holiday returns and increase your bottom line.
What is Reverse Logistics
Reverse logistics refers to the backward flow in the supply chain. It is the process of controlling the efficient flow of goods and products from the consumer all the way back to the producer through the original supply chain. By examining warrant recovery, repair, product recalls, dissatisfied customers and excess products, reverse logistics management software can help companies improve overall cost efficiency.
How Does Reverse Logistics Help?
For years, reverse logistics has been credited with helping improve a company’s bottom line, but now with the rate of returns continuing to increase, businesses can also use reverse logistics to bump up their top line, too. Below are the following ways reverse logistics helps improve your company from the top down.
- It can help cut operational costs while also increasing sales and securing customer loyalty.
- It allows to you turn failures into success by analyzing and leverage the data from returns and utilize it in the planning of new products or promotion strategies.
- It can help you determine which returned products can be repaired or refurbished and plugged back into the supply chain to generate revenue.
- It allows you to reduce costs through scalable technology and improve cash flow with comprehensive return stream management.
- It reduces cycle times by implementing a more fully integrated system that improves business controls.
- It increases liquidation values with diverse processes and improves transportation effectiveness through greater adaptivity.
Implementing Reverse Logistics Software
For more information about how reverse logistics can improve your business, visit Elite OPS today. As Utah’s reverse logistics leader, Elite OPS can help you prepare your business for the rush of holiday returns.