Did you know that, in 2010, U.S. consumers returned $200 billion worth of goods? That’s more than the GDP of 66 percent of the countries in the world. And, I bet you didn’t know that manufacturers spend 9 to 14 percent of sales on returns. All of this occurs, despite the fact that only 20 percent of the goods returned are actually defective! (2011 Greve-Davis)
Reverse logistics provides opportunities for businesses to control costs while also improving their customer’s experience. Yet many companies don’t focus enough on their reverse logistics process despite the fact that Forrester Research shows that 81 percent of consumers are more loyal to companies with a generous returns policy. But reverse logistics is not easy. In fact, it is very complicated – particularly for high-value products like computers or smart phones. Not only must the consumer return an item – they must also be given a replacement.
What does this mean for a logistics giant like UPS? Well, UPS is changing the face of reverse logistics by making it easier for both the shipper AND the end-customer with a new service called UPS Returns® Exchange – a combined pick-up and delivery service that gives businesses more control over the returns process – while also improving the post-sales experience for their end customers. Here’s how the new service works.
- A UPS driver picks up an item for return while simultaneously delivering a replacement item.
- The driver then packs the product to be returned, scans the shipping label and takes the package for delivery to the product provider’s designated facility.
- The replacement item is only delivered if a like item is provided for return, improving shipper control of the returns process and reducing the opportunity for fraudulent returns
The service, available in October in the U.S., Canada, Europe, Mexico and Puerto Rico, is particularly targeted to customers in the high-tech electronics, healthcare device and high-value retail industries where companies want to control replacement costs while providing excellent customer service.
This new product ensures maximum protection of returned products to reduce costs and environmental impact. UPS evaluates packaging to confirm that it will protect goods against damage for both legs of transportation and ideally, be reusable and recyclable.
For more information on UPS Returns Exchange, visit the UPS Pressroom.
|Category:||Logistics, UPS News|
|Tags:||healthcare, high-tech, logistics, returns, reverse logistics, UPS Returns Exchange|