Industry Insights From Renewal Logistics:
7 Strategies to Optimize Reverse Logistics
When it comes to reverse logistics optimization, apparel brands need a cohesive strategy. A strategy that accounts for speed, efficiency, and cost. Paying close attention to policies, partners, data, capacity, and logistics will set your apparel brand on the right path to success and profitability.
Evaluate Relevant Policies and Agreements
- Are your Returns Policies clear?
- Review and revise the procedures related to your company’s returns policies
- Make sure they are clear and consider the root causes of your returns.
- The way a brand deals with returns can be a competitive differentiator.
Collaborate with Suppliers
Close collaboration with suppliers can help ensure a smooth, integrated experience for customers, not a disjointed one they will struggle to navigate.
Use Data to Optimize Processes
- Do you have technologies in place to collect data points?
- Collecting data on product returns will help you can understand why customers may be returning products.
- This allows insight to make adjustments in sales, product design and forward or traditional logistics processes accordingly.
Track products forward and backward
- Are you tracking product issues?
- As an example in the food industry, linking raw materials to the finished goods and the customer order allows you to trace ingredients in the event that you need to process recalls.
- Instead of issuing them for entire lines, you may be able to find the issue and selectively issue recalls.
Centralized Return Centers
- Do you have a dedicated or centralized facility for your product returns?
- With a centralized return center, you can better sort products and identify the best next step for each of them.
- Centralization can help your brand more efficiently determine how best to reclaim product value.
- If your company lacks the resources to have a separate returns center, consider partnering with an apparel-focused 3PL that offers Value Added Services.
Examine Logistics and Transportation
- Can your inbound transportation company pick up empty pallets as they drop off full pallets, so that you save trips, time and money.?
- Regularly review the processes for forward (traditional) and reverse logistics and transportation. Determine if it is feasible to integrate some of these processes and transit.
Automation
- How are you tracking asset recovery, managing refurbishment and providing business intelligence analytics.?
- Using cloud-based logistics software can help streamline operations and optimize profitably.
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