Challenges of Reverse Logistics
Reverse Logistics has its challenges. The companies that can respond to these challenges effectively enjoy a bigger market share and can increase their profits. That is why it might be worth considering relying on independent expert 3rd parties such as Unilog.
The challenges include:
● Response Time
Modern consumers are very time-sensitive. They want their products to be shipped in a matter of days, and if the shipment is free of charge, it is even better. They also expect the full return and refund process to be effortless.
The storage and processing of the returned goods can generate storage costs. The ability to swiftly recover the product, repair it and release it back to the market in a short time can differentiate a company from its competitors.
● Poor visibility
Good visibility of all parts of your supply chain is necessary for good reverse logistics. The ability to track and trace the goods across the supply chain is necessary for efficient collaboration between parties. This visibility optimizes the processes and decreases the cost and time of reverse logistics processes.
● Lack of capacity to manage the returns
Businesses may lack the knowledge to manage their returns. The ability to choose the right courier, ship replacement products, respond to customer questions, and employ the appropriate personnel to manage all of it might not be feasible for the company.
However, they can always outsource all their reverse logistics to Unilog.