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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.
But, of course, what those circumstances are is for you to decide. Lately, though, aside from improving returns efficiency and cost by outsourcing logistics to a competent 3PL, you may have the option to outsource returns processing only, contracting it out to one among an emerging genre of providers specialising in reverselogistics flows.
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). It can go further than this, of course.
Of course, it is helpful to have some statistics on hand to validate the statement above. If your supply chain network design has not been under the microscope, and you care about business success, it’s probably time to consider the benefits of a design review and optimisation exercise. Mini Case Study: Whirlpool.
Reverselogistics. Once you have gathered the data relating to your customers’ needs, you should be able to see if a single logistics strategy will work for your entire customer base, or whether you need to take a segmented approach. Delivery service levels. Warehouse facilities and proximity. Delivery frequency and lead times.
The added benefit of working with such a partner is that because they collect performance data from hundreds of companies, they can help you choose the most appropriate key performance indicators to use in your benchmarking exercise. They can also aid you in identifying and implementing best practices to further your performance objectives.
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