Industry Insights From Renewal Logistics:
The 5 Areas of Reverse Logistics You Need to Know
Understanding Reverse Logistics can aid in an efficient flow of goods, reduce costs, create value for your brand, decrease risk, and complete the product life cycle. As an apparel brand, you can attempt to handle this process in-house. However, partnering with the right 3PL will allow you to focus on growing your brand and do what you do best.
The 5 Areas Of Reverse Logistics You Need To Know
The return process starts when the consumer signals they want to return a product. This step should include return authorization and identify the product’s condition. This process also involves scheduling return shipments, approving refunds, and replacing faulty goods.
Once a returned product arrives at your location or your 3PL Partner’s location, it should be inspected and its return category should be determined.
If you have optimized reverse logistics, you should have an idea of where the product should go before it arrives. For instance:
- Defective Return: Is the product not made correctly or is the consumer not happy with the product?
- Excess Product Return (From Retailer)
- Seasonal Return (From Retailer)
Keep Returns Moving
- Can the product be repackaged, repaired, or refurbished to First Quality?
- Resell as new, resell as a return, resell via recommerce, donate, or recycle.
After reviewing the returned item and determining whether it can be refurbished, what path will it take?
- Discount Channel also known as the value chain
- Refurbish: Sell as New
- Remove Item: Send to Good Will or Waste (Send to Landfill)
Any parts or products that you cannot fix, reuse or resell should be donated or sent for parting or recycling.
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