GOODQUESTION
A SIGNIFICANT CHALLENGE REMAINS: the slow processing of returned inventory that sits in the warehouse—tying up capital. These items must be inspected and made available for resale much more quickly. –Troy Graham
High to Low Marks I would give a range of grades from A to F for how brands are handling reverse logistics. There is still a
lot of variation in this area—from consumer spending to B2B direct spend. A stellar reverse logistics program can lower the bar to buy. It’s so much easier to make a purchase decision when you know you can send the product back if needed, with no hassle. This is an area for improvement. –Doug DeLuca Product Marketing Manager, SAP Business Network, SAP
VP of Customer Success, Descartes Systems Group
discounts, or destroying items entirely. Using a warehouse management system to drive the returns process supports a well-managed reverse logistics system. –Eric Allais President & CEO, PathGuide Technologies, Inc. REVERSE LOGISTICS OPERATIONS have been left largely unchanged for decades. Manual, paper-centric processes lead to a lack of visibility and accountability. Brands need to implement technology and automation into their operations. –Jon Ward Senior Director, GM, Elite EXTRA, an Epicor solution WITH AN OVERALL RETURN RATE of nearly 18%, revenue is significantly impacted by returns. Consumers demand convenience, free returns, instant exchanges, lenient return policies, and consistency. Providing all this comes with a high price, but it’s worth it to improve customer satisfaction.
development? Defects in the product? Marketing that made customers think they were getting something different? Each returned item is a lesson. –Josh Dunham CEO, Reveel BRANDS SHOULD VENTURE to porch returns, restaurants, airports, and spaces with heavy foot traffic, looking beyond traditional parcel posts and kiosks. When it comes to quick fashion sustainability, they should consider how to salvage excess in a better way and embrace virtual try-on technology to reduce returns. –Ann Marie Jonkman Vice President, Global Industry Strategy, Blue Yonder
RETURNS-TO-SALES RATIO remains steady. Focusing on reducing returns is crucial. Other opportunities include fraud prevention and sustainable disposal in the reverse supply chain. –Tara Buchler
Vice President, Product Management, e2open
CONFUSING POLICIES and clunky processes frustrate customers. Tech could improve tracking, speed, and data. –Roslyn Ellerbee Founder & CEO, Express Errands & Courier BRANDS OFTEN OVERSIMPLIFY or neglect reverse logistics to focus on outbound logistics. To improve, they should set up processes to categorize and classify returns, create clear business rules for handling items (resale, refurbish, recycle, or dispose), and work with a reliable 3PL provider. –Dave Tu President, DCL Logistics
SOME MATURE GLOBAL SUPPLY CHAINS have been using reverse logistics to find backhaul revenue opportunities and minimize the movement of empty trucks. By and large, companies are only beginning to think about how to optimize reverse logistics, and this will be strategic to sustainability in our new circular economy.
–Jason Minghini Senior Vice President, Operations, Kenco
MANY DEFAULT to writing off returned goods as a loss without ever learning from it. Are there patterns that can inform future product
–Matthew Bunce Senior Engagement Principal, Aera Technology
Answer upcoming Good Questions at: www.inboundlogistics.com/good-question We’ll feature some responses.
BELOW SATISFACTORY. Brands struggle with reverse logistics by either mixing returned items with new inventory, reselling products at vast
June 2024 • Inbound Logistics 7
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