Improving sustainability with better reverse logistics
Achieving operational efficiency in reverse logistics can boost a company's bottom line. This can be facilitated by streamlining the return, repair and product allocation processes.
The number of returns is often higher that the number of defective products, notes Ryder System. For example, the source notes that one in seven cell phones is returned, and more than half of these are in good working condition. These returned products that are still usable can be recovered with an efficient reverse logistics process.
Reverse logistics done right can lighten the administrative load and improve sustainability levels. Sustainability and reverse logistics are intertwined. As green initiatives become more popular with stakeholders and consumers, in addition to their benefit to the environment, companies have been committing more resources to sustainability. Improving the reverse logistics chain will support their sustainability efforts, as it will help them optimize asset recovery, minimize returns, consolidate shipments and improve their freight management.
In fact, asset recovery also enables companies to comply with federal regulations mandating the reduction of electronic equipment waste. These regulations have existed in the European Union for years and are being developed in the U.S.
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File Under: Reverse Logistics