The What, Why & How of Reverse Logistics
In today’s blog we will discuss what is reverse logistics, why do we need it and how does it work.
Reverse logistics is similar to supply chain management, but instead of managing the supply of goods from the seller to the consumers, it starts from the end consumers and moves backward throughout the supply chain all the to the seller. It includes recycling, reclamation, of raw materials, refurbishment, and reselling of items that have been restocked.
But why is Reverse Logistics Important?
“Less than 10% of in-store purchases are returned, compared to at least 30% of items ordered online.”
Whenever we purchase a product online, especially clothing items, it is very difficult to get an idea of the exact products, and most of the time we need to return or exchange the product and this is where reverse logistics companies help you serve your consumers. Because, the option of return and exchange, especially on eCommerce websites, increases the consumer’s trust as well as the seller’s reliability.
Studies show that worldwide, the returns are worth almost a trillion-dollar annually and this continues to grow further each year with the growth of the e-commerce industry.
Therefore, it helps to build customer loyalty and repeat business and to minimize losses related to returns.
How does Reverse Logistics work?
Broadly speaking, it involves managing returns and buying surplus goods and materials as well as dealing with any leases or refurbishments. But the exact process varies from industry to industry and so does the economic incentives.
For instance, in the construction industry, with the growing sustainable practices to reduce waste, there is an opportunity for cost-saving by using reverse logistics as they help to move and recycle salvaged materials to new sites where they are used as raw materials for new constructions.
Whereas in the food industry, it mostly involves returning packaging materials and pallets as well as rejected food shipments.
So, do you need to outsource our reverse logistics to a company or can you do it by yourselves?
As the eCommerce sector grows, the demand for both reverse as well as traditional logistics management is increasing. Some eCommerce companies prefer to outsource these tasks to companies who specialize in them whereas some prefer to do it themselves.
Irrespective of whether you are a small or a big eCommerce company when you opt to outsource your reverse logistics to companies that specialize in it, you not only reduce your risk of error but also increase your bandwidth to focus on your primary work.
We at GreenTek Reman offer you one of the best reverse logistics services. We undertake the responsibility of reverse logistics for our clients. In addition to improved customer relationships, we also ensure competitive monitory return based on efficient asset recovery. We are well equipped with a separate R&D division and a highly-automated facility for End-to-End e-waste disposal. At GreenTek Reman we recover up to 99% of recyclable products and dispose of the highly hazardous waste. We believe in prolonging the lifespan of valuable materials by recycling all that we can. Hazardous Components obtained in this process are treated in an environmentally safe way & metal extraction is liquidated. Recycle process can be explained under these steps.
- Contract Sign-up
OEM’s, E-commerce companies, and logistic partners with Greentek to pick up the user returned, DOA, carton damaged objects.
- Collecting Damaged/ Returned/ EOL Inventory
When the client requests a pickup, the Greentek Reman team acts to pick up electronic equipment from the client through PAN India logistics.
- Repair /Refurbishing
E-waste is dismantled, shredded, separated (ferrous and non-ferrous) and then EOL products are recycled in our plant.
- Asset Recovery & Liquidation
GreenTek ties to maximize the re-utilization of the electronic products It should be received through reverse logistics. Assets recovered in this process are remarketed.
To know more about us and our reverse logistics services, you can reach out to us at GreenTek Reman