Handling of returns is not only a part of a successful customer
experience strategy but it is a logistics challenge that many retailers
struggle with. In fact, according to Intermec’s recent survey, about 44% of
distribution center managers admit that managing returned goods is a pain point
within the business. To solve this pain point, 60% of distribution center
managers are turning to ‘reverse logistics—the reverse management of stock to get
items back into the supply chain as soon as possible.
As more retailers move into multi-channels, the management
of reverse logistics can not only be difficult but costly if not done
correctly. Next to free shipping, an easy and free returns process is important
to maintain a strong customer experience, particularly for online purchases.
Specialized companies such as Newgistics offer solutions for
retailers that chose to outsource this service. Based on a Newgistics’whitepaper, more than half of consumers surveyed said they had returned merchandise
to an e-tailer at some point. Among these shoppers, the top expectation for
returns was a prepaid, preaddressed shipping label. This feature makes the
return process easier for consumers. After prepaid, preaddressed shipping
labels, the second most common consideration that consumers cited regarding
returns was how quickly their accounts are credited. Next came the desire for
e-tailers to clearly communicate their return policies prior to purchase. An
unfriendly or unknown return policy is one of the top reasons customers abandon
online shopping carts.
Reverse logistics could possibly be a competitive advantage
for brick and mortar retailers over e-retailers. By capitalizing on its
multi-channels such as the physical store, online presence, mobile and tablet
websites and its distribution centers, returns can be made either in-store or
by mail regardless what channel the merchandise was originally purchased in.
The merchandise can then enter the reverse logistics process and if determined
saleable can be sent to any store as part of standard inventory replenishment
or be sold online. To do this properly, retailers will need to connect their
online websites (mobile and standard) with its physical store and to its distribution
centers for complete visibility in inventory, transportation and order
management/fulfillment – These systems will need to be able to communicate with
one another in order to balance this process successfully. Probably a more
difficult and definitely more complicated process to set up than from that of
an e-retailer but the potential could be great. Partnering with the likes of
Newgistics or even traditional logistics providers that offer a reverse
logistics solutions such as Kuehne+ Nagel, DHL, CEVA or UPS may be beneficial
as well.
UPDATE: A bit remissed here and my apologies but not only would companies benefit from traditional logistics providers but also from fulfillment/efulfillment companies such as Kenco, Innotrac, Webgistics, DMI and Shipwire.
UPDATE: A bit remissed here and my apologies but not only would companies benefit from traditional logistics providers but also from fulfillment/efulfillment companies such as Kenco, Innotrac, Webgistics, DMI and Shipwire.
