Reverse Logistics Ch9

• What is reverse logistics?

  Reverse logistics is the opposite of the standard supply chain.
• How do goods move in reverse logistics?

  The goods move from the end user (customer) back to the seller (retailer) or manufacturer.
• What types of returns does reverse logistics include?

  It includes returns from e-commerce and retail, as well as components for refurbishing and remanufacturing.
• What percentage of goods purchased in the US are returned?

  10% of all goods purchased are returned in the US.
• How much is the value of returned goods annually in the US?

  It equates to $260 billion worth of returned goods annually.
• What begins the reverse logistics process in retail?

  It begins at the customer service desk when a customer brings back an item they have purchased but no longer want.
• What must retailers do with returned products?

  The retailer must move products back up the supply chain to recapture value.
• What are some possible actions for returned products?

  Some products could be re-shelved, sent back to a distribution point, or sent to a liquidation center.
• What is the customer expectation regarding refunds?

  The customer expects to have the purchase price refunded quickly and without question.
• What are the four types of returns retailers face?

  1. Commercial returns: Incorrect products purchased or delivered.
  2. Product recalls: Retrieving defective or unsafe goods.
  3. Repairable returns: Items that require repairs.
  4. End-of-life returns: Products that do not receive continuing support.
• What is the primary goal of reverse logistics?

  The primary goal is to recover value from assets to increase revenue and reduce expenses.
• How can reverse logistics boost the efficiency of a traditional supply chain?

  By separating the operations.
• How can value be recaptured in reverse logistics?

  Value can be recaptured by reselling items, refurbishing them, or selling to a discount liquidator.
• What are the benefits of effective reverse logistics management?

  It can reduce costs, improve customer satisfaction, and increase market share.
• What is a primary strategic question regarding reverse logistics?

  Whether a company will handle reverse logistics with in-house resources or rely on a 3PL partner.
• How can returns be divided for efficiency in reverse logistics?

  Returns can be divided by geographic regions, types or size of products, and disposition of products.
• What factors contribute to the increase in customer returns?

  Customer service policies, increase in e-commerce, and the Consumer Protection Act (CPA).
• What was the increase in South African online sales from 2019 to 2020?

  South African online sales increased by 66% from 2019 to 2020.
• What rights do consumers have under the CPA regarding defective goods?

  Consumers can demand an exchange, credit, or refund within 6 months after purchase.
• What happens if damaged goods are identified before delivery?

  It is easier and less costly to resolve the problem.
• What types of goods can be returned if unsold?

  Products like bread, milk, magazines, books, and newspapers can be returned if unsold.
• What is a method to reduce incorrectly ordered goods?

  Ensuring checks are done by both parties before dispatch and delivery.
• What is the difference between warranties and guarantees?

  Warranties usually have a time period for repairs, while guarantees assure product performance.
• What occurs during a product recall?

  Manufacturers or suppliers retrieve defective products from the market.
• What is the first step in handling reverse logistics for retail?

  Establishing a returns policy and training for store personnel.
• What is a key competitive differentiator for retailers?

  The returns policy.
• What is the process for handling returns in clothing retailers?

  Receive returns, process returns, and send goods to the warehouse for sorting.
• What are the 5 Rs of Reverse Logistics?

  1. Returns and Exchanges: Avoid returns by selling high-quality products.
  2. Reselling Returned Products: Tag, test, and repackage returned items for resale.
  3. Repairs: Fix broken items on-site to lower return costs.
  4. Replacements: Offer customers smooth return and exchange options.
  5. Recycling and Disposal: Focus on sustainability and proper recycling.
• How can companies manage repairs in reverse logistics?

  By setting up a field repair operations center for quick inspection and fixing.
• What is the benefit of recycling and disposal in reverse logistics?

  It reduces costs and meets legal requirements for recycling electronics.
• How can transportation companies assist in recycling?

  By picking up used packaging for return to the warehouse during deliveries.