Reverse logistics: Learn from your returns
The best practice in reverse logistics is to prevent product from coming back in the first place. Since that’s unlikely, it’s important to understand why goods are returned and learn how to capture the greatest value from the process.
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April Services PMI contracts after 15 months of growth, reports ISM 2023 industrial big-box leasing activity heads down but remains on a steady path, notes CBRE report U.S. rail carload and intermodal volumes are mixed in April, reports AAR Q1 U.S. Bank Freight Payment Index sees shipment and spending declines Pitt Ohio exec warns Congress to go slow on truck electrification mandates More NewsReverse + logistics = reverse logistics. Sounds like a basic equation, one that would imply that reverse logistics is simply the supply chain moving backward. But if you ask Shibesh Banerji, principal consultant at Tompkins Associates (800-789-1257, www.tompkinsinc.com), he will tell you that the process isn’t so simple. In fact, Banerji and his colleagues prefer the term service supply chain to represent the scope of reverse logistics.
The service supply chain starts the moment a product is sold to a consumer and lasts right up until the end of its useful life, explains Banerji. “There was a time when we would receive a returned item and dump it. Nobody really cared what happened afterward. An OEM or retailer would wash their hands of the item and move forward.”
Not anymore. That practice is changing, and there’s a lot more focus on moving backward. Suppliers and retailers are paying attention to returns whether they like it or not. “Reverse logistics is like a diet—you know it’s good for you, but it’s hard,” says Don Derewecki, assistant vice president at TranSystems (201-368- 0400, www.transystems.com).
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April Services PMI contracts after 15 months of growth, reports ISM 2023 industrial big-box leasing activity heads down but remains on a steady path, notes CBRE report U.S. rail carload and intermodal volumes are mixed in April, reports AAR Q1 U.S. Bank Freight Payment Index sees shipment and spending declines S&P Global Market Intelligence’s Rogers assesses 2024 import landscape Pitt Ohio exec warns Congress to go slow on truck electrification mandates Q1 intermodal volumes are up for second straight quarter, reports IANA More LogisticsAbout the Author
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May 2024 Logistics Management
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