By Manjunatha N
In, today's competitive environment, the concept of product return from a customer is a challenge for the entire supply chain community. So Reverse Logistics capability, powered with technology, has drawn attention of the entire logistics community. They are working towards solving the complexity and other concerns in this ecosystem.
The dramatic changes in the retail business, mainly due to the growth of Internet and e-commerce over the past few years, is forcing retailers to handle Reverse Logistics. Consumers are expecting flexibility and promptness while buying a product and are expecting the same promptness and flexibility for product returns.
This is a perfect time for developing a return policy and should be considered as a top priority by all retailers. Faster problem resolution and implementing other methods to provide a smooth flow of products returns from omni-channel and multi-channel for curtailing deception and misappropriation should be the main agenda.
Many retail organizations have put in place best-in-class transportation and logistics systems and processes, but have not considered that Reverse Logistics could be a bottleneck in the future. As it is a crucial area, the retail organizations should strategize and restructure for Reverse Logistics.
The results of "National Retail Federation (NRF) 2014 Return Fraud Survey" from the "2014Consumer Returns in the Retail Industry" report are an eye-opener. It shows that there is a steep increase in percentage of estimated amount of fraudulent returns, by around 20%, from $9.1 billion in 2013 to $10.8 billion in 2014. Retailers and manufacturers should take a note of it.
In the competitive world it is difficult to understand how returns and return fraud can reduce total sales and add to the inventory shrink. A good experience for a customer begins with the right communication of policies, terms, conditions and access to information about the return policies. Eventually it leads to implementing the right solution. Combined with training, it boosts thorough check at the store level where item issue occurs, which leads to lesser returns, lower inventory shrink, increase in net sales, increase in profits and improved customer relationship and gratification.
Conclusion:
The dramatic changes in the retail business, mainly due to the growth of Internet and e-commerce over the past few years, is forcing retailers to handle Reverse Logistics. Consumers are expecting flexibility and promptness while buying a product and are expecting the same promptness and flexibility for product returns.
This is a perfect time for developing a return policy and should be considered as a top priority by all retailers. Faster problem resolution and implementing other methods to provide a smooth flow of products returns from omni-channel and multi-channel for curtailing deception and misappropriation should be the main agenda.
Many retail organizations have put in place best-in-class transportation and logistics systems and processes, but have not considered that Reverse Logistics could be a bottleneck in the future. As it is a crucial area, the retail organizations should strategize and restructure for Reverse Logistics.
The results of "National Retail Federation (NRF) 2014 Return Fraud Survey" from the "2014Consumer Returns in the Retail Industry" report are an eye-opener. It shows that there is a steep increase in percentage of estimated amount of fraudulent returns, by around 20%, from $9.1 billion in 2013 to $10.8 billion in 2014. Retailers and manufacturers should take a note of it.
In the competitive world it is difficult to understand how returns and return fraud can reduce total sales and add to the inventory shrink. A good experience for a customer begins with the right communication of policies, terms, conditions and access to information about the return policies. Eventually it leads to implementing the right solution. Combined with training, it boosts thorough check at the store level where item issue occurs, which leads to lesser returns, lower inventory shrink, increase in net sales, increase in profits and improved customer relationship and gratification.
- Returns vary according to the industry and it poses huge challenges and barriers
- Current industry practices and future market trends reveal upgradation of systems and technologies
- Retailers concentrating on reverse logistics should not view it as just a cost center
- Companies should focus on a comprehensive and strategic Reverse Logistics solution which will add business value and a concrete market advantage
- With a well-defined methodology and KPI's for Reverse Logistics, retailers and manufacturers can derive valuable analytics which will provide a definitive ROI with lower TCO
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