Returns Processing In Relation To Third Party Logistics

Third party logistics services are shifting focus to reverse logistics, which is the practice of organizing and refining the process of product returns. For a large business to succeed, they must make their returns department efficient in their duty in pleasing the customer at an acceptable cost.

The amount of people returning items is higher than ever. With money tight with most United States citizens, and the Internet providing a common barrier between buyer and seller, there have been high returns all across the board. This means that there must be a system in place to handle excess returns, but also a system to solve the problem of why returns are occurring.

Many returns aren’t because the customer didn’t like the product- it might be because they didn’t receive it! Getting an address wrong or failing to verify address data is a leader in causes of wrongly addressed packages. On the front end of things, it’s nice to verify address information before accepting any new orders. For the back end, it’s best to have a system that is well organized and can handle mass addressing operations.

Some products are better off being fixed than replaced- such as what Microsoft does with its gaming consoles. With the gaming console fiasco Microsoft went through, it was apparent that fixing consoles for the price of shipping and low labor costs was much more effective than missing out on lost profits and enduring new restocking costs.

Some of the most successful repair operations in reverse logistics work based on fixing products, and then shipping out refurbished products as new products arrive. This works best when there are few products that a manufacturer offers. An example would be with a router manufacturer: if a router comes in needing a repair, an already refurbished router of the same type can be sent immediately while the old one is fixed. Waiting times are drastically reduced.

Remember that you are competing with other businesses that could potentially take business away as a result of dissatisfaction. One way to reduce confusion or communication errors within customers is to spend extra time making a manual and operating booklet that goes with the product. A mobile phone should have a detailed list of every feature and button. If it doesn’t, the buyer will probably return it and trade it in for a different model that is easier to learn.

In Conclusion

Return departments can be massive: sometimes spanning entire buildings and employing teams of laborers to repair, ship, and store parts or products. Ask for help when you need it; third party logistics operations are there for when you think you have outgrown the business and need to expand with grace.

Learn more on 3PL EDI services and returns processing.