Is Reverse Logistics Becoming the Need of the Hour in India?

The growth of the e-commerce industry has led to an increase in the demand for reverse logistics. With customers expecting quick and easy return policies for their products, a strong and viable reverse logistics system needs to be put in place to ensure customer satisfaction and brand loyalty. Reverse logistics deals with the movement of goods from the customer to the seller or manufacturer. 

Reverse logistics is used when goods are moved from their final destination to another location to recapture value or for final disposal. With the booming growth of the Indian e-commerce industry, reverse logistics in India has become even more relevant due to real-time feedback and returns initiated by customers.

The Five Rs of Reverse Logistics

Customer satisfaction involves both deliveries of goods and also the return of goods from the customer in a timely and speedy manner. It would not be wise to keep customers waiting for the pick-up of returned goods. Reverse logistics can be categorised into five areas:

1. Returns

Returns are the first stage of the reverse logistics flow process. Products may be returned for a variety of reasons and a process needs to be in place to receive, inspect and test the products returned by the customers.

2. Recalls

Recalls involve removing a product from the market due to a defect or potential hazard. Recalls need to be handled quickly and delicately to avoid accident or liability concerns. Although recalls create a negative customer experience, a business’s initiative to remove bad goods from the market eventually increases brand trust among customers.

3. Recycling

Recycling of products enables companies to implement minimal wastage of resources and also focus on sustainability. Customers are becoming increasingly aware of environmental issues and care if a product is eco-friendly or not. Now, people are even willing to pay more for eco-friendly products.

4. Repackaging

After a returned product is tested and found to be in perfect working condition, it can be repackaged and returned to stock.

5. Repair

Products that are returned due to small faults or damages are repaired or their functional parts are harvested for re-use. Repaired products can be repackaged and sold in secondary markets.

Advantages of Reverse Logistics

Increased online buying leads to higher product returns for which businesses need to establish a framework for reverse logistics. Logistic services in India are coming up with new approaches to implement reverse logistics. The majority of businesses have started to share the cost of reverse logistics with their logistics partners to retain brand support and ensure sustainability.

Safexpress, a market leader in supply chain and logistics, has expertise in effective management of reverse logistics through their various processes and REVLOG system designed to automate the process thus ensuring reverse logistics to be easy and timely. Safexpress have process set in place to handle procedures like returns, documentation and taxation requirements, repacking and redistribution of products effectively.

 Some advantages of reverse logistics are:

· Better profit margins and reduced wastage as the returned product can be recycled and resold.

· Increased customer satisfaction and a better brand image.

· Availability of product data to correct issues that might have caused the return of the product.

· Opportunity to implement environment-friendly sustainable practices.

Conclusion

Reverse logistics in India is becoming more relevant due to the exponential growth of the e-commerce market in the country. With the Indian government giving importance to sustainability and minimization of e-waste, reverse logistics is fast becoming a crucial element in supply chain management.

Source:-https://www.reddit.com/user/safexpress1/comments/mnz4qd/is_reverse_logistics_becoming_the_need_of_the/