Companies outsourcing reverse logistics is quickly becoming a new standard. Instead of relinquishing all controls, companies now have an opportunity to add-on reverse logistics management capabilities from within an existing transportation management system (TMS). As a result, the multi-trillion dollar problem of reverse logistics can finally be controlled. Of course, it always helps to understand a few things about the challenges and benefits of outsourcing reverse logistics.
As the volume of returns has grown, the ability to maintain profitability and streamline reverse logistics have declined. More organizations are so focused on trying to fulfill more orders and stay competitive, especially considering the Amazon Effect, that spending extra time on reverse logistics just seems counterproductive. Moreover, companies do experience challenges in managing reverse logistics without the proper visibility capabilities, including:
Now, consider how each challenge may be applied to a company outsourcing reverse logistics management. Staff pushback may arise from a perception of lost opportunities. Choosing a quality reverse logistics provider is yet another challenge. Fortunately, outsourcing can hold the solution—provided companies know what to look for in a quality provider.
Take a moment to think about modern reverse logistics. They exist in every channel and must transcend all traditional channels. This is the idea behind omnichannel reverse logistics, and since it means casting a wider net for managing returns, streamlining as many processes as possible is essential. Furthermore, outsourcing companies know that the need for transparency in reverse logistics is absolute. So, the best partners will make tracking the full reverse process easier and integrated with existing systems. It all depends on the existing tech stack and whether it can handle another bolt-on system. Fortunately, most modern TMS platforms are built with this in mind.
Companies outsourcing can unlock significant benefits through outsourcing. These benefits are highly like the benefits of outsourcing forward logistics management as well. In fact, the top benefits realized through companies outsourcing the returns and reverse logistics processes include:
Applying a TMS that can handle companies outsourcing reverse logistics in returns management is a must-have in today’s world. Customers will not accept cumbersome returns management practices, and failures within reverse logistics will inevitably cost customers. Fortunately, reverse logistics-capable TMS platforms exist, including the Cerasis Rater. It’s time to bring logistics into the next era of outsourcing and efficiency with a proven platform that can handle both the forward and reverse logistics needs of brick-and-mortar locations, online order fulfillment centers, warehouses, and distribution centers.
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