Importance of Effective Reverse Logistics in Door to Door Delivery Services

Posted: December 31, 2015 in courier services
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Domestic courier service in India

What is Reverse Logistics?

In the express delivery industry, Reverse Logistics is a term used to describe all operations associated with the reuse of products and materials. It can be defined as the process of planning, executing and monitoring the cost-effective and efficient flow of raw materials, inventory, finished products and information related to them such as point of origin and destination. Simply put, reverse logistics is the process of transporting goods from their final destination. This is done for the purpose of proper disposal for for capturing value.
The process of reverse logistics includes the management and sale of excess goods or returned products and shipments. Traditional logistics deals with the process that brings a shipment to the customer. However, in the case of reverse logistics, the product goes back at least one step back in the entire supply chain, that is, product moves from the customer to the distributor or manufacturer. Reverse logistics comes into the picture after the sale of the product. If the product is found to be flawed, the customer has the right to return it. On return, the entire process and management involved in getting the product back is called reverse logistics. This flow includes the shipping of the defective goods, testing it, fixing the defects if possible followed by disposal or recycling. The product travels in reverse via the same supply chain network.

Importance of Reverse Logistics in the eCommerce Industry

In the eCommerce industry, the process of reverse logistics presents a massive operational challenge. This is due to the huge volume and costs of processing returned items. If reverse logistics is handled effectively, it leads to increased customer delight, reduced resource investments, decreased storage costs and distribution expenses. The number of returned goods that travel back the supply chain is much more than what people usually imagine. Studies indicate that the actual cost of transporting returned items can be as much as 5 percent of the total revenue. Some industries like catalogue retail, book publishing, greeting cards see an astonishing number of returns. Reverse logistics quality management and costs are something that cannot be overlooked by eCommerce companies as it helps to manage customer relationships and build brand loyalty.

TCI-XPS is a leading national and international express delivery service provided that also specializes in Reverse Logistics. It’s parent company is Group TCI which is valued at USD 400 million. TCI-XPS has a superior reverse logistic process in place that is efficient and cost-effective.

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