Reverse Logistics: Best Practices for Efficient Distribution Center Returns
Being busy with outbound fulfillment is great. But it can come with a troublesome side effect: a surge in returns. Examine reverse chain best practices, including types of racks and aisle configurations in return areas, steps such as unloading, staging, and triage, and what types of material handling vehicles support efficiency.
Being busy with outbound fulfillment is a good thing for a warehouse. It means your assets and space will likely see high utilization, and every on-time shipment that delivers on your company’s commitments keeps revenue flowing. But it also can come with a troublesome side effect: a surge in returns.
functions and equipment.
That includes aisle configurations, racking options, and forklift equipment.”
warehouse product specialist
Processing returns in a distribution center (DC) is a key aspect of what is known as reverse logistics. And with the rise of ecommerce, it’s an expanding challenge facing the most successful warehouses. Historically, retail returns comprise 8% of total sales, but with ecommerce orders, the return rate ranges between 15% to 30%, depending on product type.1 With ecommerce sales for the 2018 holiday season up by 16.5%, that equates to significant, growing stress on many DC operations.
This paper will examine some of these best practices, including types or racks and aisle configurations that can be used for returns areas, how to think about workflow steps such unloading, staging, and triage, and what types of material handling vehicles such as forklifts and end rider pallet jacks support efficiency.
