Reverse Logistics is profitable

Last days in class we have noticed about the importance of the reverse logistics for a company. Until now, we can have the feeling that many companies were overlooking this aspect in their logistics strategy, but the e-commerce huge rising (and consequently, competition and market factors complexity) has put the topic on the table again.

Nowadays in many sectors, the most relevant factor in reverse logistics is reduce the high return cost which has been dramatically increased with the rising of e-commerce. A recent study in the clothe sector shows that up to 40% of the orders from last year’s holiday season resulted in a return.

Assuming that a return involve the reduce of the income, transportation cost, new packaging and the possibility of damaged products, delays or inaccurate accounting, a good reverse logistics system become a crucial aspect in the company logistics strategy.

To improve the efficiency of the reverse logistics research and recapture the income reducing the returns are very important for the company. With a good reverse logistics strategy a firm will reduce the costs increasing the profits in consequence.

By: Mateu Caldentey, Jordi Pla and Xavier Bruch

Source: Barrett Distribution

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