Our organization is apparel producers and sold through 30 country wide retail outlets. As a policy customer can bring product to a retail store (collection point) free of charge for sake of alteration. In peak season, reverse logistics initiated from each retail stores almost on daily basis. Our organization has no direct financial incentive for implementing a reverse logistics system. People in organization regarded reverse logistics as cost center. Reverse logistic function taken as burden no one is interested in improvement of this important process. Please suggest, is there in any need to improve efficiency of reverse logistics and why?
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Customers returning goods increase the uncertainty. But if Returns management (RM) is clearly a part of the parcel, and, if handled properly, it can decrease costs, while simultaneously increasing revenue and serving as a means of competition. The total offer is called the “value package” and consists of the physical product plus the services surrounding it.
People in your organization should understand that reverse logistics as an integral part of services for gaining value and organization should communicate its importance. The responsibilities and roles of all participants of reverse logistics must be clear, defined and understood. The importance of timely and standardized communication of RM should be practiced for gaining efficiency.