Blog/TheBeginner’sGuidetoReverseLogistics

Reverse logistics play a key role in e-commerce and wider circular economy structures. For any business sending out orders, establishing effective and efficient reverse logistics is central to maximizing customer experience and the overall smooth running of your operation.

However, for many businesses, the topic of reverse logistics can be a cause for confusion. In this article from Zedify, we put together an informative guide to reverse logistics. Explaining what reverse logistics is, how reverse logistics can be managed and noting some key benefits of having a strong returns process.

We’re passionate about bringing about sustainable change in our congested cities. In the wake of an e-commerce explosion – we’re rethinking fulfilment, paving the way to reduced traffic congestion and cleaner inner-city air. Our sustainable reverse logistics are designed to help keep your business on the move.

What are Reverse Logistics?

The term ‘logistics’ refers to the movement of goods from one place to another. Reverse logistics specifically deals with the process of returning goods back up the supply chain.

Depending on the circumstances, returned products can either be disposed of or have their value recaptured via reuse or recycling. Reverse logistics covers logistical demands occurring after the initial receiving of a product by the customer, whether this is in the case of returns, exchanges or refunds/replacements for faulty or broken products.

In the age of online ordering and next-day deliveries, the needs of customers are changing. With expectations more demanding than ever, poorly managed returns can really impact how customers perceive your brand and its service. So much so, a poor returns procedure might lead to lost customers.

With so much at stake, it is certainly worthwhile for businesses to look into the fine details of reverse logistics – refining their approach and reaping the rewards. Not to mention how operating an effective reverse logistics strategy and procedure requires several different moving parts – including organisational and administrative elements such as managing incoming returns, exchanges, and recalls all whilst prioritising customer experience.

How do you Manage Reverse Logistics?

Managing reverse logistics can be challenging for businesses. However, incorporating the right practices and procedures can help a business stay on top of its reverse logistics stream.

Create a Comprehensive Returns Policy

A starting point for any effective management would be creating a comprehensive returns policy. This policy will outline what customers should expect from your returns, including all relevant terms and conditions that may impact their access to returns or how the returns process may take place.

This policy should be clearly displayed on your website for customers to access with ease when placing an order. In addition to communicating your returns policy to customers, it is also essential internal staff members have a thorough understanding of the policy – to ensure that returns are handled consistently and effectively.

Optimise your Reverse Logistics Network

As previously mentioned, having a clear plan for your reverse logistics is vital – this includes curating a well-designed network. A well-connected network understands its customers, suppliers, and warehouses to maximise ease of working between components. Optimising this network helps boost both efficiency in-house and speed of service for customers. Having an efficient network can also reduce the environmental impact of your operation if it reduces the number of trips required to action customer requests and transport products.

See how Zedify can improve your returns processes >

Incorporate Technology Solutions

Incorporating technological solutions into your process can be a great way to optimise efficiency. A simple but commonly used example is the incorporation of barcodes to scan and track products. In addition, customer relationship management (CRM) software can be useful for tracking interactions with customers relating to returns.

Explore Zedify’s CMS Integrations >

What are the Benefits of Having a Strong Returns Process?

Improved Customer Satisfaction

In the age of online shopping, customers really do consider returns policies when they choose where to shop. For this reason, it is recommended that businesses have their returns policy easily accessible via their website prior to checkout. This allows customers to make informed decisions about whether your shopping experience fulfils their needs. In addition, having a clearly stated returns policy takes the guesswork out of shopping with someone new.

In this sense, returns policies offer security to customers. No shopper wants to part with money without the certainty that they can access a refund if necessary. In many ways, having clear returns procedures simply makes a business seem more ‘trustworthy’. Further still, an efficiently executed returns policy that is true to what is stated re-affirms customer trust and increases their likelihood of providing return custom.

The impact of parcel delivery services on retail success >

Increased Sales

In addition to boosting customer satisfaction and security. Many businesses also report increased sales as a result of their strong returns process. Noting returns clearly online or within marketing may offer a final decision-making incentive for shoppers to make a purchase.

A reliable returns process may lead to increased sales as customers have the comfort of falling back on this effective returns process. Customers are granted the peace of mind that should they wish to order numerous products and return some after reviewing them in person – they can. Of course, while this may ultimately lead to returns in some cases, there will also be instances where this leads to customers purchasing and keeping more products than they initially intended.

Improved Service

By operating an effective returns process, businesses gain access to insights into which products are falling below customer expectations.

If a business sees frequent returns of one particular product, they may investigate any recurring faults to improve customer experience or cease production of a product if demand appears to be low.

In this sense, your returns process can act as another line of direct feedback with customers, that allows you to refine your strategy and maximise the quality of your product and customer experience.

Cut the Carbon on your Reverse Logistics with Zedify

Here at Zedify, our sustainable reverse logistics services are transforming first-mile delivery across the UK. Our trained, committed team members are experienced in handling a wide range of package types with appropriate care and efficiency. We know how important it is to provide your customers with a fast, reliable returns service – our expert team is on hand to provide sustainable collection and returns. Zedify don’t only achieve sustainable deliveries for their customers, they are also a seamless returns partner.

To learn more about how our cargo bike courier services could support your business’ reverse logistics, start a conversation with the team today. For information about how cargo bike deliveries can also assist your products in crossing the final mile, take a look at some of our other blogs.

• What Does Last-Mile Delivery Look Like in London
• How Important is Next Day Delivery to Your Customer
• Why Choosing Sustainable Deliveries is a Good Idea.