The 5 Essential R’s of Reverse Logistics

In the current condition of the environment, it becomes extremely important to be smart about your supply chain and optimize every link. You have to be aware of both the forward as well as the reverse logistics. There are many organization’s that have been putting their valuable effort in optimizing their forward supply chain but as far as the return management process is concerned, it still remains a black hole. In today’s blog of – reverse logistics Singapore, we are going to explore this topic in detail and we will also discuss the 5 Essential R’s of Reverse Logistics. So let’s start today’s discussion.

Returns: The first R that we are going to talk about in reverse logistics Singapore blog is actually the first step in the reverse logistics flow. There are numerous reasons because of which customers return products. Some of these reasons include the product being defective, damaged, seasonal, fails to meet expectations, or simply represents excess inventory. No matter what is the reason of the return but the key to handling returns efficiently is having processes in place for receiving, proceeded by inspecting and testing the product, along with return material authorization also called RMA verification and tracking systems. You may encounter some organization’s that like to deal with return and repair processes separately.

Recalls: There is another method through which the parts and products can be returned is through recalls. We would like to tell our readers that the recall process that we are talking about here is more complex than the basic returns that we see. The major reason behind this is that they typically involve a product’s defect or potential hazard that the product may contain and may also be subject to government regulations, liability concerns or reporting requirements.

Repair (refurbishment, re-use, or re-manufacturing): One of the myths that we want to break here is that not all products that are returned go directly to landfills. If the faults that the device contains are not too severe then usually the manufacturers identify the failure and repair, refurbish or re-manufacture the product to its brand new state and return it to the market for reselling. Such practices have quickly become popular among manufacturers as they now recognize the value of reusing materials from returned goods. In both the conditions customers can expect an increased stock of both new and re-used or re-manufactured products at the markets.

Repackaging (restock or resale in secondary channels): There are two conditions under which the returned parts and products might be re-manufactured. The major reason behind customers returning products is because they are not satisfied by the device and not because they detect something wrong with the device itself. The products are tested again by the manufacturer and once the testing process reveals “no trouble found,” these products are typically repackaged and returned to the retailer for reselling as quickly as possible.

Recycling, disposal, and disposition: The last R in the reverse logistics is when the products reach the ends of their useful lives where they are in need to be scrapped. In order to dispose of such products in an environmentally friendly manner organization’s are putting in a lot of effort to find processes which are safe and cost effective as well.

The reason we need reverse logistics is its impact which is significant on two fronts as they impact both the customer experience and the bottom line. In our blog of reverse logistics Singapore, we are sure you must have understood the importance of reverse logistics to its depth.