ROUNDTABLE
Reverse logistics , a critical yet underappreciated aspect of supply chain management , focuses on moving goods from their final destination back through the supply chain . It encompasses returns , refurbishments , recycling and proper disposal , enabling businesses to recover value while addressing sustainability goals .
Unlike traditional logistics , which prioritises delivering products to customers , reverse logistics optimises the management of returned goods and surplus inventory , helping businesses cut costs , enhance sustainability and improve customer satisfaction .
Reverse logistics and customer loyalty Recognising efficient reverse logistics is vital to the customer experience . Proper management of returns can significantly impact customer loyalty . Experts agree that mishandled returns may “ break customer loyalty ,” emphasising the importance of seamless processes .
However , managing returns – especially across borders – introduces complexity . Customs regulations , taxes and shipping constraints often lead to delays and increased costs . Streamlined processes , accurate tracking and effective communication are essential , therefore , to overcoming these challenges and maintaining customer trust .
Innovation leading the way To address the challenges , businesses implement innovative solutions , such as strategically located return facilities , automated processes and AI-driven technologies . Automated return labels , flexible return options and predictive AI tools enhance efficiency while improving customer convenience .
94 January 2025