I’ve always believed in thinner, lighter and more powerful when it comes to electronic gadgets. A new smart phone. A tiny television. A color electronic book. All of these things fill me with inexplicable glee. But what happens to those gizmos once they’ve been replaced with newer models? Or when my pre-ordered device has to be returned because early units are defective? What’s out of sight and mind for me often represents opportunities for high tech companies.
Enter reverse logistics. Reverse logistics is the processes of receiving returned components or products for the purpose of recapturing value or proper disposal. It is much more than simply counting defective items returned by customers. Reverse logistics can uncover hidden profits, reduce liability and enrich customer satisfaction.
And yet reverse logistics seldom receives much attention — that is, until something goes wrong. The average manufacturer will spend 9% to 15% of total revenue on returns, according to a 2010 Aberdeen Group study. In fact, improving reverse logistics can help a company increase revenue up to 5% of total sales.
Interested in learning more? Read the whitepaper that we commissioned, “Recovering Lost Profits by Improving Reverse Logistics,” written by Curtis Greve and Jerry Davis of Greve-Davis.
|Category:||Business Insights, Logistics|
|Tags:||high-tech, logistics, returns, reverse logistics, whitepaper|