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It would be tempting to think of reverselogistics as forward logistics done backwards. Reverselogistic isn’t simply a reverse gear. Reverselogistics can also have a dramatic effect on steering a company’s fortunes. This also qualifies as reverselogistics.
One crucial yet often overlooked aspect of the supply chain is reverselogistics. Lets explore what reverselogistics entails, why its important, and how businesses can optimize it. What is ReverseLogistics? At its core, reverselogistics deals with the flow of products moving backwards in the supply chain.
Reverselogistics could be the business equivalent to the passage of time and life for nature. And at the end, check out a nice infographic speaking more to reverselogistics strategies and practices. Throughout the course of business, there will be a series of recurring updates for equipment, software, and materials.
However, one of the most important aspects of supply chain strategies is often overlooked: the reverse supply chain (also referred to as reverselogistics ). Basically, reverselogistics in the supply chain revolves around dealing with end-of-life, malfunctioning, or hardware upgrades.
What is reverseLogistics? Before we dive in the nuances of reverselogistics, otherwise known as return logistics, integration, let's briefly recap what reverselogistics is. Reverselogistics refers to all operations related to the reuse of products and materials.
Anyone who owns an ecommerce brand has unwittingly been through a crash course in ecommerce logistics. Forward logistics, or the process of moving a product through the supply chain from the manufacturer to the end customer, is a process most startups don’t worry about until it becomes a problem. What is ReverseLogistics?
Of course, Amazon is investing heavily in its infrastructure and working toward market share gains, likely in detriment to earnings. Nike’s 2020 earnings are another example of costly e-commerce operations’ impact on the bottom line. As does reverselogistics (returns). percent profit margin. Not a magnificent maring.
Within the course of one online chat, an isolated email response, or a single phone call, someone who bought from your ecommerce brand can be influenced whether or not to buy from you again. Of course it is, right? And no, that wasn’t an exaggerated example to make a point. Let’s find out the TOP 10 now! Move Like the Wind!
So, for example, outsourcing sales activity is not typically a good idea if yours is a retail sales company. But, of course, what those circumstances are is for you to decide. Let’s take ecommerce as an example. But just because you can outsource it all doesn’t mean you should.
The shift to full end-to-end integration, of course, leaves no one else in the middle. The first is size , of course, with Maersk running over 17% of global ocean capacity , but also selling land-services to just under 20% of those same customers. Other sources reported that DB Schenker was not the only forwarder making this shift.
Standardise and Digitise The key to managing complexity, of course, is to be organised. The ecommerce logistics practitioner must instead integrate reverselogistics into his or her company’s inventory management strategies and processes. Try to establish consistency in the identification of your company’s products.
For example, a subtle change in hydraulic pressure may still permit the machine to operate. However, over the course of several months, this slight change in pressure could cause permanent damage to the machine, or it may cause additional problems for other aspects of the manufacturing process.
This neutral third party acts as the admin and point person for managing the ins and outs of your 3PL order fulfillment situation, as well as all other supply chain partners you may work with (for example manufacturers, freight forwarders, outsourced customer service teams, etc.). Another example is the crucial factor of 3PL software.
Indeed, for many logistics and supply chain professionals, reverselogistics for years has been regarded as pejorative expression. But in today’s era of the fickle e-commerce customer, the reverse loop represents an untapped opportunity for hard-working, imaginative logistics managers and their third-party logistics partners.
Cloud computing itself is a prime example. All you need is your credit card (and a driving licence, of course.) Value-Added Services Modern 3PLs are expanding beyond traditional logistics services to offer additional value through reverselogistics management, product customization, assembly services, and supply chain consulting.
More and more enterprises will be focusing on processes like ethical sourcing, reverselogistics, and using green materials in response to public demands. Our customer ELIX Polymers, for instance, uses S&OP Navigator to quickly simulate the impact of any problem on their volume and EBITDA and decide on the best course of action.
Of course, it is helpful to have some statistics on hand to validate the statement above. Walmart may be the most famous example of a company that has succeeded primarily because of a well-developed and aligned supply chain strategy. The success of your business links inextricably to the performance of your supply chain.
How quickly do you need to restock, how should you split your inventory across multiple locations , and of course what kind of inventory ordering system best suits your brand? Even if your order management is running at a high level, though, without reverselogistics systems in place your operation can only go so far.
Of course, it would be possible to write an entire book on this particular subject, so for the sake of keeping this article relatively brief, I’ll stick to a short explanation of crucial factors to consider when planning a warehouse network (even if it is a network of one). Outbound Logistics: Keeping Customers Satisfied.
Brands that have a reverselogistics plan in place make it through the returns season in much better shape than those that don’t. Of course, the opposite is also true — when handled poorly, returns can hurt your brand. Let’s take apparel, for example. That’s a lot of merchandise flowing backwards up the supply chain.
While the initial change seemed minimal, the ministry lowered their Purchase cost of remanufactured toner cartridges by up to 40 percent, with reverselogistics aiding in sustainability measures. In another example, Hong Kong began switching conventional traffic lighting to more energy efficient LED traffic lighting.
Ecommerce bands, even those with amazing reverselogistics operations in place, feel the negative impact of returns. The best 3PLs, like ShipMonk, take care of the reverselogistics side of things, which helps limit the fallout of these situations. The toll may not even stop there.
Reducing carbon footprint in logistics is not without benefits. Many companies report savings after adopting greener courses of action. Selecting greener suppliers should be the first step towards reducing carbon footprint in logistics. For example, ocean transportation is a notable contributor to global sulfur emissions.
The first steps, of course, are to understand the challenges you face, prioritise them for action, and consider the resources and help you need to meet and overcome them. There are, of course, several ways to achieve a logistics knowledge infusion. Where to Access the Knowledge You Need. How to Improve Product Availability.
For example, you don’t want to assume that a single logistics strategy and service approach will meet all your customers’ needs. Reverselogistics. For example: How much automation will you need in your warehouse(s)? Hence, your first task will be to gather unequivocal facts about your customers’ requirements.
For example, what is meant by quality? Of course it might be possible to reduce last-mile delivery costs while also addressing driver-management concerns, although the necessary technology and conceptual expertise is only just beginning to gain a foothold. Quality or Cost and What does it Mean?
The circular supply chain also integrates the reverselogistics process, taking products returned from customers and reinserting them into the forward flow at appropriate points. A single mistake at the beginning of the supply chain, for example, can jeopardise the ability to meet service-promises to hundreds of customers.
Of course, there is the question of, “Why bother?” Clothing is a perfect example. Depending on what’s being sold, there is also the need to consider reverselogistics, and how to process return and damage claims. E-commerce sales in 2019 accounted for 11% of total sales,” according to data taken from the U.S.
Rather than focusing solely on getting items out the door, your warehouse teams now have to be concerned with the entire product journey, not to mention reverselogistics. There’s a valuable lesson to be learned there. This keeps overhead low and plenty of flexibility in the supply chain.
With all that in mind, I thought I’d share some examples of the highs and lows of online and in-store retail that enterprises have endured between late 2019 and early 2021, and highlight some of the most notable changes in the retail supply chain arena during that period. The reverselogistics process, too, is a prime target for refinement.
In the last session of our Service & Sales course, our professor stated that “partnerships with distribution channels and suppliers create extra value for its customers”. And also, our Logistics Professor said that outsourcing of logistic services as a very intelligent decision in many cases.
More and more enterprises will be focusing on processes like ethical sourcing, reverselogistics, and using green materials in response to public demands. Our customer ELIX Polymers, for instance, uses S&OP Navigator to quickly simulate the impact of any problem on their volume and EBITDA and decide on the best course of action.
From there, there are more silos focused on how the product is sold and delivered, such as "B2B retail distribution teams," "ecommerce fulfillment teams," "reverselogistics teams" and so on. For example, the price of 42# linerboard has gone up 35% in the last 12 months, over the course of 4-5 price increases.
Black swans in the supply chain refer to unexpected, unusual disruptions within the supply chain, reports Melanie Nuce of Inbound Logistics. For shippers, this means finding a way to handle changes in inventory and replenishment, as well as managing outbound freight and reverselogistics. DOWNLOAD THE FREE RESOURCE HERE.
Of course the same is true in many professions, but is particularly so in the arena of supply chain and logistics. Types of Job in Supply Chain and Logistics. There are many job types in supply chain and logistics, so to simplify things, it’s best to categorize them in some way. ReverseLogistics Manager.
This is nothing new of course. No retailer or producer for example, wants to be implicated in a consumer health scare resulting from poor quality-management in their supply chain. Here produce might sit in environments where temperature is not controlled, while waiting for customs clearance , for example.
Value-added services like customs brokerage, insurance, and reverselogistics add layers of complexities well beyond the scope of a carrier’s core competence. One recent example is CMA CGM’s recently-launched Freddie platform. Customer acquisition at scale is a messy process. Another direction is digital integration.
Not all of those examples are exactly illustrious, but they do (for the most part) prove that two heads really are better than one. If you’ve ever thought about expanding your business, chances are that you’ve run into the term “logistics service provider.” How to Choose a Logistics Service Provider.
Of course, if your product, sans packaging, is already above the weight limit there’s not much you can do to make it lighter. For example, ShipMonk runs every SKU through a dimensional scanner during the receiving process. We can manage your returns and reverselogistics as well as order fulfillment.
There are many benefits that accompany the use of transport and logistics providers and their TMS systems. For example, LTL would comprise one bucket. Of course, there are times when the ROI can produce positive results faster. Essentially, this negates the concept of minimal savings from using a dedicated TMS.
This in turn allowed Wal-Mart to replicate sales successes between outlets; creating and managing peaks in demand via its systems for buying, shipping, and of course, warehousing. Premium orange juice for example has a storage life of about 65 days. Everyday Challenges in Warehouse Operations. Tropicana Products, Inc.
Considering the 64 potential combinations, when applied to the course of 1000 shipments, it amounts to 64,000 opportunities for error. Paired with value-added services, a quality TMS can transform outbound and inbound logistics into a turnkey operation. Reverselogistics. Freight claims management services.
Value-added services like customs brokerage, insurance, and reverselogistics add layers of complexities well beyond the scope of a carrier’s core competence. One recent example is CMA CGM’s recently-launched Freddie platform. Customer acquisition at scale is a messy process. Another direction is digital integration.
Costs vs. Client Happiness Two standard examples of the types of companies ripe for outsourcing warehouse operations for the first time. Remember, three costs are involved: the freight, of course, but also the capital warehouse expenses, and the labor component to move merchandise to your customers.
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