Reverse Logistics

What is Reverse Logistics?

Reverse logistics is the process of bringing a product(s) that have reached the market place and is then returned back to the manufacturing company either for refurbishment or for an attempt to salvage parts. The biggest issues our customers face is having a team and department set up to handle these returns and support in an efficient manner. It can be very costly to have these resources in place, so our customers turn to RiverSide Integrated Solutions for their reverse logistics management.

The Benefits of Reverse Logistics

Well implemented reverse logistics improves customer satisfaction and loyalty, by quickly and smoothly managing the return and either repairing or replacing the faulty product. In addition, important customer feedback can be gathered during the process, leading to design improvements that reduce future product returns.

Reverse logistics can also help efficiently extract more value from returned merchandise, saving the time and money that would otherwise be spent on acquiring new parts and assembling them. Efficient reverse logistics can recoup the material and labor costs invested in the material salvaged from returned products in two ways: by using the parts that are still good to replace parts in other repairs, and by selling refurbished merchandise.

Why Manufacturers Outsource Reverse Logistics

In order to deliver those benefits, reverse logistics requires resources spent on warranty tracking, returns management, and additional parts procurement (for when refurbished parts aren’t available).

Aside from those logistics requirements, the repair and rework aspects of reverse logistics usually require a highly-skilled technical staff. That’s because repair and rework require troubleshooting skills, diagnostic equipment knowledge, understanding of the relevant engineering domain (electronics, optics, pneumatics, hydraulics, mechanical), and often specific certifications and formal technical training. Although assemblers can put a unit together, skilled technicians are needed to determine why a product isn’t working right.

Small and even mid-sized OEMs often look to outsource their reverse logistics to companies like RiverSide Integrated Solutions to recapture product value efficiently. Not only do they get top-notch technical and logistical personnel to handle their reverse logistics, but these companies also gain peace of mind, allowing them to focus on product improvements, customer service, and new product launches.