Returns Processing In Relation To Third Party Logistics
Third party logistics services are shifting focus to reverse logistics, which is the practice of organizing and refining the process of product returns. For a large business to succeed, they must make their returns department efficient in their duty in pleasing the customer at an acceptable cost.
The Internet has acted as a marketplace and a hub for business, but it also leads to a higher rate of returned products. Products might be different than what the customer expected, they may rethink a purchase, or it might just be defective. Whatever the case may be, any legitimate Internet presence deserves a returns policy and procedure that can handle even the most massive of recalls.
Many returns aren’t because the customer didn’t like the product- it might be because they didn’t receive it! Getting an address wrong or failing to verify address data is a leader in causes of wrongly addressed packages. On the front end of things, it’s nice to verify address information before accepting any new orders. For the back end, it’s best to have a system that is well organized and can handle mass addressing operations.
Some products are better off being fixed than replaced- such as what Microsoft does with its gaming consoles. With the gaming console fiasco Microsoft went through, it was apparent that fixing consoles for the price of shipping and low labor costs was much more effective than missing out on lost profits and enduring new restocking costs.
Some of the most successful repair operations in reverse logistics work based on fixing products, and then shipping out refurbished products as new products arrive. This works best when there are few products that a manufacturer offers. An example would be with a router manufacturer: if a router comes in needing a repair, an already refurbished router of the same type can be sent immediately while the old one is fixed. Waiting times are drastically reduced.
Remember that you are competing with other businesses that could potentially take business away as a result of dissatisfaction. One way to reduce confusion or communication errors within customers is to spend extra time making a manual and operating booklet that goes with the product. A mobile phone should have a detailed list of every feature and button. If it doesn’t, the buyer will probably return it and trade it in for a different model that is easier to learn.
Final Thoughts
Third party logistics companies have operations, software, and the man power ready to take on any reverse logistics operation. Medium and large businesses are better off outsourcing their operations, rather than attempt to do an in house logistics operation and cause a clear cut disaster instead.
Learn more on 3PL EDI services and returns processing.
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