Step up ROI from Reverse Logistics in Supply-chain Management

Posted By : Vipasha Singh | March 28, 2020

Reverse Logistics in SCM

With the advent of integrated networks comprising numerous stakeholders in favor of isolated business units, effective supply chain management is necessary. Even though a majority of planning and strategy is directed towards forward logistics, reverse logistics is not a new notion to businesses. The flow of returned goods through a supply chain constitutes the reverse logistics. A typical misbelief surrounding reverse logistics is that it is over the odds and fruitless. A well-structured supply chain management, however, incorporates a strategic movement of returned and damaged goods to reclaim their value.


Reverse Logistics in Supply-chain Management Explained

The existence of functional reverse logistics in a supply chain is inevitable. Be it enhancing customer satisfaction or maximizing utilization of materials and finished goods, reverse logistics ensures it.

A reverse logistics supply chain environment must be augmented with an efficient inventory to ascertain the balance between supply and demand. At the same time, it demands coordination between return, disassembly, recycle and assembly units.

To avoid an accumulation of returned products, it is important to have an advanced analytics system in place. Evaluation of patterns in sales, returns, and complaints aids assimilation of products and practices as per customer demands. It includes forecasting supply/market demand patterns to formulate customer retention strategies and a fully automated product routing for cost-effectiveness.

Nothing determines customer loyalty better than easy returns and exchange. Enterprises thus need to streamline reverse logistics operations and schedule frequent maintenance activities to get a competitive edge in the market. For this, they need an efficient reverse logistics and supply chain software development.

Optimizing Reverse Logistics

An opportunity for companies to reduce costs, magnify gains, and get market traction, optimizing reverse logistics implies optimizing the entire supply chain. By expanding infrastructural capabilities and technological expertise to develop an efficacious reverse supply chain, organizations can build robust, minimum-waste supply chains. Here’s listing features that result in an optimized reverse logistics environment:

Central control

An SCM system utilizes mobile devices like barcode scanners for RFIDs, visual sorting and computer databases for collecting and sharing real-time data. This aids in sorting and moving products from a centralized return center to the next-in-line facility. Goods are systematically sorted and sent for storage, repair or disposal, reducing transit time in reverse supply chain and increasing efficiency.

Real-time visibility

Real-time visibility into the reverse supply chain through IoT and cloud-computing means access to product data at any level in real-time. This makes the process efficient by accurately passing on product handling and destination information beforehand. Not just manufacturers and retailers, even customers can track product returns, making sure the product is neither on incorrect track nor lost.

Integrated inventory and warehouse management

When real-time data is recorded into the inventory, the process of organizing and moving items runs smoothly. Keeping a tab on location, condition and destination of goods spontaneously comes in handy to warehouse managers. This also facilitates demand-based ordering and restocking of components and products. Circulation of data over the reverse supply chain prepares workers for future tasks guarantees precise allocation and use of products.

Mobile workforce management

A mobile workforce management system, as developed at Oodles, affirms an unbroken reverse supply chain. As workflow alerts are set up on this system, workers remain in the loop about the movement of products. Along with product information, workflow alerts sent to the workers’ mobile devices makes it impossible to skip any item. This keeps the warehouse staff on their toes and aids managers to supervise all activities even remotely.

Predictive Analytics

Traditionally, a growing inventory would spell trouble. With AI-powered reverse supply chains, however, they are an asset. They put predictive analytics into motion which analyses all data collected in real-time to create maximum-productivity workflows. Employing predictive analytics in a reverse supply chain enables organizations to gauge and improve the quality of products and services. It amounts to putting a planning and strategizing unit into place for proper allocation and management. It also supports forecasting supply/market demand patterns to formulate customer retention strategies and a fully automated product routing for cost-effectiveness.


At times, products enter the reverse supply chain when they fail to function properly or stop functioning within the warranty period. The process of repairing and producing these comes under remanufacturing. With a disassembling unit as an addition, this process becomes more complex than manufacturing. With the right analytical models, it can be used to maximize returns from items through demand-based component disassembling and restoration.

Therefore, it is critical to optimize the supply chain through reverse logistics tasks like restoration, refurbishing, recycling, cross-selling and re-distribution.

Building Custom Supply Chain Management Software for Reverse Logistics

We are an ERP Development company that provides futuristic ERP solutions. Our custom development solutions enable businesses to automate, plan, collaborate, and execute their operations methodically. Our unbeatable services like SAAS, SCM, WFM, CRM boost enterprise growth and revenue. Our Supply chain software development services integrate the reverse supply chain data into the main supply chain, ensuring easy allocation of resources. Get in touch with our experts to custom discover Supply chain management solutions for Reverse Logistics.

About Author

Vipasha Singh

Vipasha is an avid writer and technology enthusiast. She has an eye for all ERP solutions like Odoo, Hubspot, Magento, and Salesforce. With a bent towards Artificial Intelligence and Machine learning, she strives to produce informative, well-researched, and responsible content.

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