Reverse Logistics: The Daily Definition

 In Best Practices, Inventory Management, The Daily Definition

What is reverse logistics?

Reverse Logistics

Reverse logistics is the particular area of logistics focused on the movement of products after they’ve been delivered to the customer. Product returns, refunds, and the like look to reverse logistics for marching orders. Other areas of concern include how the product is recycled, reused, or properly disposed of once it’s no longer useful.

An example:

For most distributors, returns, exchanges, or refunds are of the biggest concern when considering reverse logistics. How does a customer return products to you? What happens to these goods once they’re back in your warehouse? What is your refund policy? These questions are all answered by your reverse logistics strategy.

Logistics as a whole is concerned with delivering your products to your customers. These are known as forward logistics. Reverse logistics, though, deals with what happens after the customer has received your goods.

Our two cents:

Ideally, you don’t have to consider what your plan is for returned inventory. In a perfect world, customers never need to return or refund the products you sell them.

But, we don’t live in that world, unfortunately. Inventory breaks, or is defective. Customers change their minds.

Once your logistics strategy is in place, look to your customer service. If a customer needs to return inventory because it was defective or there was another problem with it, they might not be too happy about that. The returns/refunds process can be tricky territory to navigate, even in the best of circumstances, so make sure that you are providing your customers with the best support you can manage.

The right customer service software goes a long way, and it’s well worth your time to find the right solution for your company. With the right software at your fingertips, you can create a customer experience that is smooth, satisfying, and easy for both your customers and employees to navigate.

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