Consumer returns bogging you down? We can help! TechTrade is a leading providing of Reverse Logistics Services for Retailers and Manufacturers. The goal is two-fold: Reduce cost of handling and increase return on investment. While it sounds simple, it is much more complicated than one would presume.
Reverse Logistics is the process of returning raw materials or finished goods to the original Point of Origin from Point of Consumption in order to capture the remaining value or properly dispose. Simplified, reverse logistics is moving products back to the start to acquire remaining value or dispose of properly. Forward Logistics is the process of product moving closer to the consumer whereas Reverse Logistics the product moves further away from the end user in the supply chain.
Forbes sites “Studies have shown that an average of 4% to 6% of all retail purchases are returned, costing the industry about $40 billion per year.” Developing an efficient process to manage returns is crucial to business’s bottom-line. Most Supply Chains primarily focus on Forward Logistics when a bigger impact on overall profit can be made through process improvements in Reverse Logistics. One case study showed companies generally only improve bottom-line by 1 to 2% through Forward Logistics. However, Reverse Logistics could impact 10 to 15% on bottom-line.
- Cost Savings
- Smoother Supply Chain
- Reduction of Time spent on Returns