Reverse Logistics Archives - GlobalTranz

7 Steps To Implement an Effective Reverse Logistics Process with a 3PL

mzugovic — Thu, 30 Nov 2023 14:00:00 +0000

Retail product returns can make a big impact on your bottom line. In fact, these returns account for an estimated $165 million in losses per $1 billion in sales.¹ Without a proper reverse logistics strategy, your business could lose out on profits simply for not being prepared. But don't worry — leading third-party logistics providers have the tools, resources and support you need to create an ideal reverse logistics strategy. In this article, we'll walk you through the basics of reverse logistics and seven steps you'll need to follow to create your own reverse logistics strategy.

An Overview of Reverse Logistics Management

Reverse logistics encompasses any reuptake, recycling, refurbishing and redistribution of goods. From the intake of returned items to the repurposing or reintroducing of those goods back into the marketplace, a solid reverse logistics management strategy can help your business maximize the value of returned products regardless of their condition.

Reverse logistics encompasses:

Return shipping of products
Product recalls
Reselling of returned items
Repairing or refurbishing items
Remanufacturing items to reuse the raw materials
Recycling products that cannot be reused

What do reverse logistics providers offer?

Leading reverse logistics providers offer a comprehensive view and holistic approach to supply chain optimization. From the intake of raw materials to the distribution of returned goods back into the marketplace, a quality reverse logistics provider will help you with:

Scalability and flexibility within your supply chain
Deep industry and geographical knowledge and expertise
Transparency into the entire product life cycle
Distribution and refurbishment center management
Data integration and web-based technology

How will 3PL reverse logistics help my business?

Reverse logistics management from a trusted 3PL can transform the way your business operates. Optimizing your reverse supply chain can help you save money, improve operations, and so much more.

Benefits of 3PL reverse logistics management include:

Reduced administrative, transportation and aftermarket support costs
Increased efficiency
Increased service market share
Higher achievement of sustainability goals
Greater customer service and higher retention levels
A synchronized supply chain to include forward logistics, inbound logistics, and reverse logistics
Transparency in supply chain operations across your network
Automatic consolidation of data from partners and systems

7 Steps to Implement a Reverse Logistics Process and How a 3PL Can Help

Looking to implement a reverse logistics process? Follow these steps to create a solid strategy. And make sure to partner with a reverse supply chain expert to ensure that your supply chain optimization efforts are as efficient as possible.

1. Develop and communicate a returns policy.

A reverse logistics process always starts with a clearly communicated returns policy. Returns happen, there's no way around it. Set yourself up for success by crafting and putting into place a clear-cut process for returns. Then make sure that your process is clearly stated on your website or by your sales representatives. Your customers should be in the loop in order to streamline the process and avoid any potentially upset clientele.

2. Collect and analyze returns data.

After you've implemented your new returns process, it's imperative to start collecting and analyzing data so that you both have an idea of where your profit benchmarks should be and also inform your future decisions to maximize efficiency. Make sure to collect and compile all data points so that you can effectively audit your process and continuously improve your supply chain.

3. Create an area for handling returns.

One quick way to optimize your reverse logistics process is to section off a specific area to handle all returns. Not only will you save time when processing returns, but you will also save yourself and your employees energy by having all returns in one centralized location. No room to designate a set returns area? No problem! Certain 3PLs offer warehousing solutions to help you make the most of your space.

4. Set up inbound shipping logistics for transporting products for returns, refurbishing and other reverse logistics tasks.

Once you have a returns plan in action, complete with data recording and a designated work area, you'll want to take a look at how your returns make their way back to you and plan for what will happen to them once they arrive. Working with a 3PL reverse logistics expert can help you find the best prices and services to fit your unique needs and help you maximize your reverse supply chain processes.

5. Establish a working process.

Determining what happens to your returns can make or break your reverse logistics efficiency. Recycling goods with life left in them or refurbishing goods with a low profit margin can leave you with unnecessary losses. Work with a trusted 3PL partner to decide what criteria each return must match to be resold, refurbished or recycled. Then create a process to follow through.

6. Determine next steps based on product usability.

Once you've decided which returned product goes where, you'll need to create a process to determine how goods are resold, refurbished or recycled. Consider your unique needs and limitations. There is no one-size-fits-all process, so be sure to work with an industry professional to ensure that you're making the most of your own capabilities.

7. Implement the steps to complete a successful returns process.

Now that you've created a solid returns strategy, it's time to put your optimized reverse logistics process into action. Remember that optimization is not a one-time occurrence. Continue collecting data and revamping your process to fit your needs as you scale and grow. A 3PL can also help implement the reverse logistics strategy to ensure all steps are working properly

Get Best-in-Class Supply Chain Optimization from GlobalTranz

Having an effective reverse logistics process in place can help companies become more efficient and profitable, especially during times of growth. Reverse logistics management, however, involves much nuance and industry know-how that companies may not have the time or resources to do well. That's where we come in. At GlobalTranz, we have the insights and expertise you need to identify areas for improvement and maximize efficiencies in your supply chain from start to finish. Reach out today to talk to an expert and see how GlobalTranz can transform your reverse supply chain.

¹Dopson, Elise, "Ecommerce Returns: Expert Guide to Best Practices (2024)." September 6, 2023. Shopify.

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What is reverse logistics and how can you benefit?

Annie Graupner — Wed, 22 Feb 2023 18:17:48 +0000

As a shipper, you are probably always on the lookout for ways to save money and increase operational efficiencies to protect your bottom line. One solution that some companies struggle with is reverse logistics. This is the process of regaining value on returned products or its parts and materials by reintroducing them into the marketplace. You can also sell qualifying recyclable parts and lower your environmental footprint.

It's no wonder many companies have begun to appreciate the underlying value of their products and are more willing to spend the time and money to invest in the reverse logistics process. In fact, they may have no choice. The National Federation of Retailers recently released a report that said, "retailers expect 17.9% of merchandise sold during the 2022 holiday season to be returned." With numbers like this, perhaps reverse logistics management should be seen both as an opportunity and necessity.

GlobalTranz, an industry-leading third-party (3PL) logistics company with a full suite of shipping solutions, is here to help. Below, we outline the different types of reverse logistics solutions and describe in detail how a company can gain value throughout the entire lifecycle of their products.

6 Reverse Logistics Management Strategies to Incorporate

Reverse logistics is considered one of the biggest challenges facing shippers. The idea of transporting and processing returned products can be difficult for many companies. However, the benefits of an efficient program include better customer outcomes, reduction in storage/distribution costs, saving money and environmental considerations. A 3PL can help you incorporate the following reverse logistics supply chain management strategies.

Returns

The customer usually initiates this step when they no longer want a product, or they found it to be unsatisfactory. The retailer or business can resell the products to another customer in marketplace at regular price or as a clearance item. Additionally, if the products are in good condition, they have the option to sell them to inventory liquidators or overstock buyers to sell at a lower price.

Pro tip: "Return" has a different meaning for rental and leasing companies that loan out vehicles, machinery and equipment on a regular rotation. When the products are returned, the company should inspect them to ensure they're in safe and working order before leasing them to another party. At some point these products, which go through a standard reverse process multiple times, will join other products in the reverse cycle as their quality and usefulness degenerates.

Recall

In recall situations, the company initiates the reverse logistics process. Consumer protection laws require manufacturers, suppliers, distributors, importers and retailers to report products with safety defects or concerns to the Consumer Product Safety Commission. If a recall is in order, the company will create an action plan to address the concerns, communicate the information to consumers and monitor the recall process. A product recall can be costly, but a company's reputation can be saved through a thorough, professional and ethical corrective plan.

Repair and refurbish

These reverse logistics solutions may start with either the customer or company. For example, a customer may send defective equipment or electronic devices to the manufacturer for repair. Or a company may publicize offers for consumers to turn in their current device or electronic goods and upgrade them for the next best model. In both cases, the company then refurbishes the older product for resale.

Remanufacture and reuse

When a product is returned to the manufacturer, it can be disassembled, and its working parts reused in other products. This process may require more strategy since the manufacturer will need to inspect the product and assess if it can be salvaged and reused. Reusing a working component can save the company money from having to purchase new ones.

Recycle

Products that are of no value to the manufacturer can be sold to other businesses for recycling and reuse. This limits the product's environmental footprint and allows you to extend the lifecycle of a product that would otherwise be reduced to garbage.

Proper disposal

This is the final step of a product and its parts when the previous categories aren't applicable or an option. In this phase, the product owner responsibly disposes of the product to create the least impact or risk to the environment. Chemicals and pharmaceuticals fall into this category, as well as those products that are of no further value and have completely reached the end of their lifecycle.

Want to learn more about reverse logistics management? GlobalTranz can help.

GlobalTranz is an industry-leading 3PL, providing best-in-class supply chain optimization and managed transportation solutions to shippers of all sizes across the nation. Our team of logistics experts will help analyze your supply chain management processes, identifying opportunities to save money and maximize operational efficiencies. That includes incorporating reverse logistics solutions into your shipping strategy.

Are you ready to speak to one of our experts? Reach out for a consultation today!

The post What is reverse logistics and how can you benefit? appeared first on GlobalTranz.

How GlobalTranz Can Improve Your Reverse Logistics Processes for Profitability

Mon, 21 Nov 2022 15:33:29 +0000

It's no secret that businesses rely on profit margins and income to stay afloat. So imagine what would happen if your business started seeing heavy product returns out of the blue? Unplanned returns can cause disruption in your shipping operations and diminish profits, resulting in last-minute scrambling to find a solution. That's why implementing a solid reverse logistics strategy is so important. In fact, it can mean the difference between hitting or missing profit margin goals.

Luckily for shippers, GlobalTranz has the managed transportation expertise and dedicated account team resources to transform your reverse logistics strategy. We'll create a customized plan to reclaim materials, handle returns and more, all while helping your company stay ahead of industry trends.

What is reverse logistics?

Reverse logistics allow companies to recoup value on returned products, including their materials and parts. A comprehensive reverse logistics plan may include:

Recycling or reclaiming post-consumer materials
Refurbishing existing goods and reselling restocked items
Managing product surplus and returned goods

Goods hold value throughout various stages of their lifetimes. Reverse logistics allows you to capitalize on that value and make the most of what you have.

Why invest in reverse logistics solutions?

The answer is simple — reverse logistics services can make or break your bottom line. The question then is whether to gamble and take any potential returns as they come or play it safe with a more proactive approach.

Investing in a quality solution from a trusted third-party logistics (3PL) partner provides companies with unmatched support throughout the supply chain. This is especially necessary for growing shippers in today's market where consumer demand is rising and environmental awareness is often expected.

How can GlobalTranz optimize your reverse logistics?

GlobalTranz is an industry-leading third-party logistics (3PL) provider that designs sophisticated logistics strategies for shippers of all sizes. We use our decades of experience and expertise to help companies navigate all shipping challenges, including reverse logistics planning. Here is how we can help you profit from your reverse logistics efforts.

Create a reverse logistics strategy

GlobalTranz can help you customize a reverse logistics solution that meets your unique goals, wants and needs with the use of five basic steps: returning, recalling, repairing/refurbishing, remanufacturing and reusing /recycling. By implementing these steps, you'll enable your company to reduce waste, honor service warranties, maximize warehouse space and increase revenue. And after we've developed your fully tailored managed transportation solution, we'll continue to monitor your operational processes, providing tweaks and tips where necessary.

Ensure your strategy is working by learning about the top five reverse logistics KPIs to track.

Utilize data analytics and inform agile decision-making to inform reverse logistics

With GlobalTranz TMS, you and your GlobalTranz account experts can analyze industry trends, access collective invoices and find operational efficiencies within your current processes. Use these insights to proactively plan for returns and make quick decisions when faced with unexpected circumstances.

Enable supply chain visibility through an interconnected, integrated information network

We provide end-to-end supply chain visibility and personal supply chain consulting to allow you more control and understanding of each stage of the reverse logistics process. We'll help you Identify efficiencies and inefficiencies within your supply chain process. Our supply chain professionals will then work alongside you to strengthen your operation. Plus, you can integrate your communications with GlobalTranz TMS to see all your insights and data points in one convenient location.

Oversee reverse logistics management and returns process

We'll not only help you cut costs and improve your customer experience by providing pre-negotiated shipping rates with top carriers nationwide, but we'll also help oversee your returns process and analyze all corresponding data. By partnering with GlobalTranz for managed transportation and reverse logistics solutions, you'll gain access to all the tools, resources and one-on-one support your business needs to succeed.

Redistribute returned products through efficient warehouse management

Our logistics experts are seasoned professionals when it comes to processing and managing returns. Along with helping you implement a fully tailored returns plan, we also offer warehousing solutions to streamline your supply chain pipeline. Store your finished product in one of our nationwide warehouses, and we'll handle both your deliveries and returns, if necessary.

Connecting Shippers Like You with Our Team of Reverse Logistics Strategy Experts

Failing to plan for unexpected obstacles like returns can be costly. However, actually forming a plan to overcome these obstacles is complex and time sensitive. The best way to craft an impactful reverse logistics solution quickly and effectively is by partnering with a trusted logistics partner like GlobalTranz. That's why transportation management and reverse management solutions from a trusted partner are invaluable in today's market.

We've set ourselves apart in the 3PL space by retaining a relational approach to all our shipper interactions. We'll get to know the ins and outs of your unique business, discuss your business goals and help craft tailored solutions to meet any challenges the road throws your way . We'll help you gain peace of mind and avoid unexpected costs with our managed transportation and supply chain solutions, all with specific goals in mind.

Connect with an expert today to see how a managed transportation solution from GlobalTranz can transform your reverse logistics process.

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Return Merchandise Authorization: What Is RMA and Common RMA Policy Attributes

mzugovic — Tue, 30 Aug 2022 05:00:00 +0000

Despite best efforts and quality control solutions, there are times when a product does not meet the expectations of consumers, companies and buyers. And in some of those cases, the product will be returned. However, shippers do have an opportunity to educate themselves on the returns processes which includes RMA shipping . In doing so, they can save time and money and protect their company’s reputation.

When a product is returned, it must go through the return process, referred to as reverse logistics. Obtaining a return merchandise authorization (RMA) is typically the first step. However, the RMA may include several service-after-sale factors. These may include warranty management, service agreements, analysis of returns, management of end-of-life equipment and other considerations. So, while it may not be complicated, it certainly does help to know the return management process from beginning to end.

GlobalTranz, an industry-leading third-party logistics (3PL) provider, helps shippers streamline their returns process. Below, we take a look at how RMAs function and review some common examples of RMA policy.

What is return merchandise authorization (RMA)?

RMA shipping exists as inverse flows of products within the reverse logistics industry . Return merchandise authorizations serve two primary functions: they help prevent improper returns and they help in gathering information about the return in question. Some companies do handle RMAs in-house. However, working with a shipping partner like GlobalTranz can streamline the return logistics process.

For example, a business may sell 1,000 items and 25 percent of them are sent for return due to a manufacturing defect. Rather than having 250 customers arriving in the store, or sending the items to your business, you need a means of encouraging the backward flow of these products to the manufacturer and obtaining financial compensation for doing so.

In addition, small-to-medium sized businesses (SMBs) may not have the resources needed, which includes both financial and labor resources, to handle mass return process es for defective merchandise. As a result, employing a 3PL, that has the technology in place to handle RMS processes seamlessly, becomes crucial to your ability to continue operating.

Common Examples of RMA Policy and Procedures

Today, most RMA requests are completed online. Upon receiving the initial request, the company, aided by the help of reverse logistics technology, needs to begin gathering information about the product. This information may include:

Date of sale
Product being returned
How it was delivered
Channel through which the product was obtained
Method of payment
Number of items
Reasons for return

The RMA process includes gathering information

When gathering information, an RMA process needs to follow three different paths. These paths focus on the relationship between the supplier and channel of transport, the product quality and consumer accommodation.

Relationship between supplier and channel — When a product is returned free of defects, it may be used for multiple purposes. For example, it may be sent off to an outlet center as it becomes obsolescent; remanufactured to recover the value; restocked in the store; sent to another center in stock rotations; or exchanged following an order error.
Product quality — This part of information gathering focuses on the quality of the item that is returned. For example, was the item defective? Will it need repackaging if opened? Was it missing parts? Does it not fit the consumer’s needs?
Customer accommodation — This refers to how the return authorization policy seeks to compensate or make the customer happy. This may include offering an exchange for a similar product, exchanging the item for the correct product or offering a warranty replacement.

Your return authorization plan should then validate information collected

After gathering information, an RMA process should move into the second phase known as validation. Information may be considered invalid or valid for various reasons. The return request may be outside of the refund and exchange window. However, you must also consider if the cost of denying the return will cause permanent harm to your relationship with the customer. For example, a return of $100 on a single item easily outweighs the cost of losing $10,000 worth of orders. To help keep things simple, follow the following steps.

Verify specifics of the return contract
Verify that a purchase order exists
Verify who is returning the product
Verify the purchase price
Verify whether it was purchased on sale or as part of a promotion
Verify whether the consumer should receive an RMA to guarantee customer satisfaction

The RMA policy will need to have processes in place to review the following items:

Warranty policy
Buyer-seller contract
Policy for customer service
Specification of RMA type (exchange, refund or repair)
User expectations for the item
Product repairs

Additionally, the return merchandise authorization policy needs to take into account how the buyer-seller relationship may change due to the return. It also needs to consider how return management will affect marketing strategy and whether the item has additional use in the product lifecycle. Upon analysis of all these factors and following these processes, the merchant may grant or deny the return authorization.

GlobalTranz Can Help You Manage Your RMA Shipping Strategy

As a shipper, you have access to an enormous number of logistics solutions and services to help you face today’s shipping challenges. And you don’t have to do it alone. GlobalTranz offers decades of expertise and dedicated support for both short-term and long-term strategies. That includes setting up strategies to protect your bottom line against inefficient return processes. Connect with one of our experts today to improve your return logistics shipping practices so you can save money and increase efficiency.

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Return Merchandise Authorizations Benefits and Best Practices for Creating a RMA Process

mzugovic — Thu, 06 Aug 2015 05:00:00 +0000

Return merchandise authorizations (RMAs) allow companies to monitor and perform returns and exchanges for buyers. RMA processes exist to make the practice smooth for consumers. It also makes it cost-effective for the seller and faster for the financial system.

However, not all processes are created equal, and you need to understand the benefits of having an one in place and what best practices should be applied to it. Without this fundamental aspect of the business, you face losing thousands in the cost of labor, time, and money from unauthorized, lengthy return authorization processes.

Benefits of Having an RMA Flow

The benefits of having an RMA procedure are fairly simple. It allows your business to focus on production, not returns. An RMA logistics procedure speeds up the returns process, which in turn, makes your consumers happier. It should encourage consumers to spend more money, and it needs to emphasize your desire to please the consumer after the sale.

When a return is pre-authorized, or it has gone through the RMA process, your system is ready to accept the return, credit buyer accounts, and make a determination on what will happen to the merchandise upon arrival. Basically, RMA processing weeds out the invalid returns, offers exceptions when return periods end and helps keep your business thriving.

Best Practices For Creating a Return Authorization Procedure

Saying you have a process and taking full advantage of it remain two vastly different concepts. An RMA policy could be simply requiring a receipt for the return. However, if your computer system automatically recognizes the item’s serial number, creates a return label, and schedules pickup from the consumer’s doorstep, your business can effectively eliminate nearly all of your costs for handling returns. This is a simplified example of the best practices for Return Merchandise Authorizations. Let’s see what other RMA best practices need to be included in your business for your process and physical handling of the return.

Separate Physical and Accounting Processes for Merchandise Return

When an item arrives, it’s tempting to immediately assign all of the merchandise as credited. However, you need to differentiate between items being returned for other purposes and items returned for refund and credit. If a shipment arrives at the facility, some items may need processing for extraction of recyclable metals and others may warrant a replacement. By making this distinction, you can reduce your chances for errors throughout the RMA arrival process.

Utilize RMA Software and Divide Warehouse Operations Responsibility

Rather than allowing physical staff to assign consumer credits upon merchandise return, the warehouse should use an automated system. Furthermore, this will allow the employees to monitor the inventory of the warehouse and reroute the item appropriately, especially if any part of the RMA information capture process was incorrect.

Merchandise Returns Management Life Cycle: Why Versus Quality

Consumers may have any number of reasons for returning an item. It may be old, defective, a recall, an improper size, the wrong color, or a case of buyer’s remorse. However, it is not the consumer’s rationale for returning the item that determines the item’s future; it’s the condition of the item. Furthermore, when the item arrives at the return center, workers must understand how the quality of the return affects the item’s lifecycle. If the item is irreparable, then it must be disposed of. Otherwise, it may be repackaged and sent to another consumer. Additionally, those working in the processing of the RMA claim, particularly when a consumer is going to receive credit, must understand why the item was returned. Ultimately, this determines the next step of the consumer journey: exchange, credit on a future purchase, or selection of a replacement part.

Expect RMA-Merchandise Prior to Arrival

When an RMA has been granted, especially when RMA processes are automated, the receiving facility must anticipate and prepare for its arrival in advance. For example, tracking information for merchandise tagged with radio frequency identification (RFID) chips needs to be entered into the system before the item arrives. This prevents system error messages and lost merchandise.

Must-Have RMA Equipment For a Seamless Process

RMA best practices refer to the steps behind accepting an RMA and processing. However, the physical handling of the return is often completed through the use of some key equipment and management systems. Take a look at how this equipment expedites the process below.

Handheld Scanners and Automated Scanning Software

The receiving facility may be receiving multiple truckloads of merchandise returns at any given time. Therefore, writing down the ID numbers for returns is impractical. Handheld scanners, or even automated scanning systems, can dramatically reduce the time for identifying if an item has been received. Furthermore, scanners play a significant role in the next two aspects of the physical return authorization process world.

Interface With Warehouse Management System

When an item arrives, it should automatically trigger the subsequent events for the facilities warehouse management system. For example, computer part A arrives due to being the wrong color. The WMS should identify this item as available, and the item needs to be stocked on the floor. Alternatively, if the item needs to go for repairs, the WMS should send the item to the appropriate pallet, loading dock, or repair area.

Accounting Software That Supports Returns Management

In close relation to the WMS-interface, the arrival of a return should automatically trigger a response from the accounting system. For example, upon arrival, the consumer receives his requested credit on his account.

Return Merchandise Authorizations Procedure: Create Efficiencies & a Seamless Customer Experience

When considering the best practices for enhancing an return authorization process and carrying out the returns, the whole process should focus on achieving three things: make it easy and fast, make customers happy, and pawn off the process. The last part sounds strange, but it actually means employing 3PL for transportation and logistics services help you reduce your expenses in the returns process. Connect with an expert to discuss solutions today.

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