Why is Reverse Logistics so important now?

The concept of reverse logistics is complex and foreign to most people, but it is more important now that it has ever been. The economic downturn has resulted in organisations seeking to reduce costs and improve customer satisfaction – usually regarded as incompatible concepts.  Manufacturers cannot maintain their high cost bases, but at the same time must not risk losing even more sales through reduced customer satisfaction.  Retailers must focus on sales above all else, but can’t allow that to reduce the quality of their service.

Luckily, specialists in reverse logistics are there to achieve both outcomes.  Organisations can outsource their returns and repairs operations to specialists and achieve both reduce fixed costs, and the service improvements that specialists can offer.

Additionally, the environmental effect of constant consumption is massive.  Reverse logistics has a critical part to play in protecting the world we live in by extending the life of goods and recycling them after their use.

This article from Dr. Harold Krikke in the Reverse Logistics Magazine discusses the current economy and the influence reverse logistics has.

Reverse logistics not only saves money, it actually creates value by supplying vital materials, components and products to the ‘forward’ chain. A well-known European copier firm now sources almost 50% of its parts and materials via its own Asset Recovery department, often in collaboration with first tier suppliers and specialized repair firms.

We overlook the post-sales management of consumer goods at our peril.

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