Dirty Little Secrets of Holiday Returns 3: Reverse LogisticsHow 3PLs can help retailers maximize the value of returned goods
For goods that are returned to a distribution center, the story is different. Merchandise that is returned to a distribution center takes an average of four days to restock and costs approximately $6 to process.
Because of consumer preferences to return goods to a physical store and the reduced time and cost of doing so, some retailers are making changes to their businesses. Here are a few:
- A joint agreement between Kohls and Amazon enables consumers to return goods to 82 stores in Chicago and Los Angeles
- Walmart initiated “Mobile Express Returns” in approximately 4,700 stores across the U.S. Consumers simply need to open the Walmart mobile application, scan a QR code at an express station within the store then leave the merchandise.
- Walgreens has partnered with FedEx to facilitate returns to one of the more than 7,500 stores across the United States.
3PL Reverse Logistics Activity Broadens Following Booming Holiday Sales Season.
First the holiday sales, then the holiday returns. It is all part of the great retail cycle of life in which not all retailers are equal. In terms of the global supply chain and logistics industry, not all retailers are prepared to process the volume of returned goods, especially online retailers. As it stands, online retailers that have the necessary business process, operations and people in place or that outsource reverse logistics to experienced
5 Reasons to Rely on a 3PL to Process Returns and Handle Reverse Logistics
Because industry studies, popular articles
- Improved margins and enhanced profitability
- Faster turnaround to stock time
- Enhanced customer service
- Higher rate of consumer satisfaction
- Overall reduction in operational expenses
3PL Value-Added Services for Returns Processing and Reverse Logistics
Reverse logistics is, by its nature, a very manual process. Packages are opened. Goods are inspected. Documentation is prepared based on the assessment of the returned goods. Returned merchandise is then determined if it can be resold or if it is damaged.
Time is the enemy in processing some types of returned goods and inventory management is critical. Apparel, electronics
Using supply chain management software for inventory management and to provide
- Returned merchandise repair or enhancement:
- Button attachment or button changes
- Deodorizing merchandise
- Emblem attachment
- Miscellaneous repair of goods
- Heat transfer
- Screen printing
- Product assembly
- Bonding or fastening
- Sewing repairs
- Cleaning, mold and mildew removal
- Prepare returned merchandise for resale:
- Packaging or re-packaging
- Hanger change or hanger insertion
- Application of barcodes, labeling or re-labeling
- Price ticket changes or re-ticketing
- Application of security tags
- De-kitting or kit assembly
- Salvage of parts or components of merchandise
- Recycling of goods
Leading Qualities of a 3PL Reverse Logistics Services Partner
- Ability for the 3PL partner to provide clear, accurate, timely communication
- Experience in repairing rather than simply replacing merchandise components, especially items that are expensive or hard to locate
- Rapid turnaround time
- High quality accurate performance of
- Usage of
leading edgetechnologies to provide real timeinformation flow and supply chain visibility
Using these various types of supply chain software, wireless technology and material handling solutions reduces labor and errors, provides real time information visibility for inventory management and aids in speeding up processing time. All just to get goods back on the shelves so that consumers can buy them-again.
In the complex supply chain and logistics industry, many businesses falter when handling returned goods and the reverse logistics business processes that are required. By outsourcing the business process of returned goods to third party logistics providers, retailers can rely on their expertise, supply chain and logistics networks and technology to provide real time information flow and supply chain visibility.
Processing returned goods quickly, accurately and efficiently so that they can then be positioned for resale is often essential to reselling the goods at all. 3PLs that deal with returned goods typically offer a wide array of