Reverse Logistics Built to your Needs
For many companies reverse logistics takes a back stage in the supply chain management. Up until now there were a number of solutions to deal with reverse logistics but they were fragmented and disjointed leading to problems not only for the manufacturer but also for the retailer and third party service provider. This has led to missed opportunities and higher costs due to lack of efficiency and productivity in the reverse logistics process. Moreover poor product visibility, weak operational performance and asset utilization and missed customer commitments have also led to organization paying penalties for low service levels.
In a new market research study of 250 reverse logistics professionals conducted by Blumberg Advisory Group, Inc., more than 50% of respondents rated their current systems as not effective in many critical performance metrics due to the fragmented and disjointed nature of the reverse logistics management systems they have.
Organizations have woken up to the fact that reverse logistics if handled properly can yield not only profits but also customer loyalty.
Challenges faced in Reverse Logistics
- Lack of visibility within the reverse supply chain.
- Inability to meet customer demands, expectations and contractual obligations.
- Lack of maximizing asset utilization and resources.
- Challenges with respect to improving operational performance.
- Lack of knowledge of what to do with respect to returned goods.
These challenges faced by organizations can have a negative impact on the financial performance and customer satisfaction resulting in increased operating costs and penalties due to compliance issues and lower profit margins.
The Need for Efficient Reverse Logistics Solution
The ideal reverse logistics solution should provide for end-to-end integration of business functions and processes that are integrated with other back-end systems such as CRM, supply chain planning systems and financial systems. The principle of forward logistics should be followed with reverse logistics also. It should provide for real time visibility, tracking of product, material and data through the reverse pipeline.
The use of state of the art software systems to manage critical business functions has been adopted enterprise wide to automate core business processes such as Supply Chain Management, Customer Relationship Management and Distribution etc. Thus by implementing reverse logistics management organizations will gain significant ROI with reduced operating costs. They also significantly gain in areas like improved quality levels and customer satisfaction.
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