March 9, 2023

How Can We Improve Your Reverse Logistics Process?

The circular economy of supply chain management must address the transportation of goods back to the manufacturers or sellers. Last decade, many companies fixed their eyes on improving the reverse logistics process to keep costs low. Thus, returning became an integral part of the distribution program.

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Here are some new trends that will make your reverse logistics processes more efficient:

Evolving to meet shippers’ requirements and expectations.

Shippers will always want to avoid increased costs. This statement becomes more accurate amid a growing market. Every day, more and more businesses are evolving to meet the demands for an efficient reverse logistics service.

Industries like electrical, pharmaceuticals, and automotive, among others, are playing an increasingly crucial role in the escalated volume of returns and replacement of items. As a result, shippers and retailers who need more control over their supply chain will see increased costs and potential issues related to an immediacy market.

Savvy planning to enhance sustainability.

Several steps are involved in reverse logistics, including processing the products, dealing with freight, and maintaining the movement, repair, or recycling of products. Smart planning must incorporate the internet of things, automation, analytics, artificial intelligence (AI), metrics, and machine learning to enable better outlining.

Since reverse logistics relies on information, smart planning must address all the generated data. Strictly speaking, companies should use all information available to reduce the rate of returns, as well as avoid fraudulent returns.

Circular supply chains

This trend aims to promote reverse logistics significantly. Therefore, leading players usually invest in the improvement of supply chain management. This process includes refurbishment, recycling, reselling restocked products, and reclamation of raw materials.

Since reverse logistics handles the flow of items back toward manufacturers, shippers, and third parties, it would be efficient to utilize unopened and undamaged products to fulfill new orders. Therefore, the cost associated with re-shipping or restocking will be reduced.

The use of technology to improve auditing.

As companies look for ways to expand their trace capabilities, traceability is becoming the cornerstone of all transparency measures. Moreover, an efficient tracking system reduces losses related to fraud and delinquency.

The use of automation in reverse logistics processes is one of the most significant trends in the years to come. Automation might be utilized to route return requests, avoid delays in processing, generate labeling and packaging, and much more. Companies can leverage robotic automation to audit their operations effectively as the process continues.

At Last Mile Logistics, we have made more analyses to help you improve your processes. Our combined experience will match perfectly with your business. So please, call us if you have any inquiries or an RFP.

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