Last Things First: Using 4 Reverse Logistics Benefits to Boost Supply Chain Management

Last modified: April 17, 2015

Supply Chain Management typically ends at the end user. The original item has been manufactured, shipped and received by the consumer. Generally, a lack of thought goes into the process of returning products and what to do with them when received back in-house. Most return management processes are vaguely outlined. Information is unclear as to what returns exist in the pipeline and their status. Are the items to be repaired, replaced, refurbished, recycled or trashed? Reverse logistics handles the processes that are used to return products, parts and materials from the end user or final consumer. Reverse logistics aims to increase the bottom line for businesses with the creation and implementation of improved internal processes.

4 Core Benefits of Deploying a Reverse Logistics Process

  • Improved transparency of the status of the returned item. Create a process that allows users to calculate the number of items to be utilized wholly or in part. The company can save in manufacturing parts by knowing which parts can be harvested and reused in the future.
  • Identify waste streams and inefficiencies. As reverse logistics is a part of the entire lifecycle, remediating areas that get bogged down such as repairs and refurbishing help to get usable products back to end users or to new consumers at a reasonable cost.
  • Consumers are able to be kept current on the status of their product in the pipeline. Not every product needs to be replaced and end users need an idea of the time it will take to get their product fixed. Transparent practices create clear modes of communication for consumers.
  • Better handling of the raw assets that are returned. Will the product be sold as raw material or end-of-life recycling? Identify in-house or third-party providers that will help collect waste and dispose of assets in a sustainable and cost-effective way.

Reverse logistics helps companies to quantify and calculate the product returns from the end users. The processes in this area are coordinated to use the returned product as an asset and provide additional income with the implementation and coordination of sound business practices.

The Types of Businesses That Can Take Advantage of Reverse Logistics

reverse logistics benefitsReverse logistics processes can be added within emerging and established tech or with those with no existing supply chain management processes. Especially in the data center and data security industries who have to replace parts across the globe for high paying clients. Often, within the service level agreement for the client’s of these types of companies, a specific KPI of 98% or higher is required as it pertains to uptime and service parts replenishment. Reverse logistics is an area that addresses returned items. This particular process usually has little organization and supervision and is generally seen as a loss to businesses and simply a part of the cost of doing business.

Flash Global, your specialist in high-tech, mission-critical SPL, enables growth for companies large and small. The implementation of supply chain solutions that are consistent, compliant and visible strengthens the ability of key users to communicate effectively, responsibly handle issues quickly under agreed upon specifications and make the most out of the products and materials themselves.

Implemented supply chain solutions:

  • Are scalable. Supply chains will easily handle growth within a company. Employees are easily onboarded when company procedures and objectives are clear.
  • Improve Communication. Everyone can be directed to set procedures that can be changed for future needs but provide a consistent foundation of general rules, expectations and third-party providers.
  • Reduce man hours. Work quickly and efficiently when all parties communicate clearly and can function well within their roles.
  • Make money. Manufactured parts and raw materials are assets that can be reused or sold and reinvested into the company. Stop the money leaks by eliminating inefficiencies.

Leverage the Expertise of 3PL

Flash Global is a leader in global reverse logistics management services. They specialize in the emerging technology sector. This encompasses data centers, network security and telecom industries. FlashTrac, their propriety web-based IT platform, integrates with internal CRM and ERP systems and external systems such as SAP, Oracle and Salesforce.

4 reasons to choose Flash Global are:

1. FlashTrac offers clients enhanced benefits:

  • Global visibility. Meet the needs of end users across the globe in real time.
  • Transparency is applied within operations unhindered by borders or time zones.
  • Automaticity built in to the system. Data is consolidated on all ends from partners and systems and uploaded automatically.

2. Partner with Flash Global and take advantage of the new FlashView. This tool enhances the management of shipments throughout the supply chain.

3. Collaboration with an expert third-party logistics provider and experience greater control over the complete supply chain. Their knowledge of reverse logistics management creates more efficient practices in the testing and inspection of returned items.

4. The Flash Global comprehensive program addresses the technical, strategic and operational need of organizations internationally with local assistance in 80 countries guaranteeing inside knowledge of operations within that area.

Learn how to turn apparent losses into additional revenue and create better internal processes with the implementation of reverse logistics. Choose a leader such as Flash Global to assist in the supply chain needs within an organization for improved efficiency, communication and profit.

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