Technology and Customer Data Collection
In Reverse Logistics
What challenges and issues do retailers face in collecting customer information, data, etc. in reverse
logistics processes? How does technology assist in these challenges? Why is technology so
important in managing reverse logistics processes?
DATA COLLECTION IN REVERSE LOGISTICS
Technology and Customer Data Collection
In Reverse Logistics
Data collection and research is a tool instrumental in all types of businesses. The amassing of
information can at times facilitate the improvement of products and services offered by the
particular company. Analysis and examination of the data gathered bits of help in the
formation of a basis regarding what the general customer trends and behaviour are, what they
are influenced by, which products are purchased at a higher rate and in which locations are
certain products preferred as compared to other products offered by the company. Also, the
same information can be used to influence consumers to purchase specific products and
consequently lead to an increase in sales. Reverse logistics is defined as the return of a
purchased good back to the origin. This process requires the gathering of information on
customers in order to ensure its effectiveness regarding customer experience and cost
reduction.
As showcased in U.S. Department of Education, Office of Educational Research and
Improvement (n.d.), each specific method used in the collection of data has its merits and
demerits. Explained below are some ways used to gather information.
Interview.
This is a method of data collection that involves meeting up face to face with the
individual whose information is required. It is advantageous in that the interviewer can
request for more clarity where required, comprehensive information is collected, and the
researcher can find out how people understand the various points at issue. However, in some
cases, it can be costly, problematic regarding analysis, exhausting and end up in the reduction
of sample space due to the availability of time.
DATA COLLECTION IN REVERSE LOGISTICS
Surveys (Email).
These are surveys conducted by sending and accepting receipt of the specific
instrument used in an investigation such as a questionnaire to and from the respondents
through email. Some of the benefits of this method are that it does not use up much time,
many respondents can be surveyed, is less costly and all respondents use similar instruments.
The downside of it is that it is not useful where the description is required, understanding the
issues in question may be difficult, and some respondents may fail to finish and send back the
surveys. Furthermore, the acquisition of accurate email addresses can be challenging.
Observations.
The process of scrutinizing and examining an object or a person is what is known as
an observation. Benefits of this form of collecting data are that it results in factual analysis
and is also not wholly dependent on respondents providing data. Nevertheless, observation
takes much time, is limiting regarding the number of objects or people being monitored, at
times can require the process of observation may influence a steep price and the actions of the
participant.
Focus Groups.
Researchers use this method to interview a group of people of about a dozen
participants or less to determine their judgement, views, attitudes, and thoughts towards an
item, process or idea. The pros involved in this method are that the researcher can interview
some people at a time resulting in fewer costs and can identify how the participants
understand the questions. Also, respondents are influenced to provide answers when one
person participating gives his reaction to the subject matter in question. Despite this, some
participants may find it hard to respond when combined with others, management of groups
may prove problematic, and some participants may choose to repeat or copy another
respondent views.
DATA COLLECTION IN REVERSE LOGISTICS
Information Technology and its Input in Reverse Logistics Procedures.
As highlighted in Jayaramana, Ross, and Agarwal (2008), most companies currently
have incorporated the use of technology in their operations with the aim of smoothing out
their management systems. As technology advances, specific applications and software are
created to tackle specific challenges and reinforce particular processes. EDI (Electronic Data
Interchange), ERP (Enterprise Resource Planning), CRM (Customer Relationship
Management) and also RMS (Returns Management System) systems have been designed for
reverse logistics procedures ( Bajdor & Brzeziński, 2018).
Returns Tracking System (RTS).
These are automated systems that are used in the tracking of a returned product and
are instrumental in its movement. There is considerable growth in the number of returned
goods, and these systems are suitable for improving the flow of the product being returned.
Through this system, returns records are generated, data on details of the returned goods are
stored, replaced products are transported, and incorporation into online shops is made easy.
Also, requests from consumers can be acknowledged or rejected, knowledge on the item
being returned is available, regulations on the returns policy are established, and
communication with numerous storage facilities is enhanced.
Radio Frequency Identification (RFID).
This technology is utilized in the dissemination of information concerning a product
in order to share information about it. The product in question has an RFID tag. The tag is the
medium by which data on the objects are stored. The item does not need to be necessarily in
close range; it can still relay data from a distance because communication is not dependent on
whether or not the tag can be seen. It requires the use of radio waves to recognize the items
instantly. Through RFID, costs are decreased; logistics operations enhanced, and the flow of
the process is made simpler. It is a type of automatic object recognition that is advancing at a
DATA COLLECTION IN REVERSE LOGISTICS
rapid rate. Applications in great number make use of RFID in the retail process and therefore
can also be applied in the return process with the aim of quickening.
Barcodes
These enable real time relay of data through the depiction of the object information by
use of graphs. The graphs are a mixture of sequential black and white sections known as bars
that are governed by the accepted standards of the code’s creation. Its core advantage is the
automatic recognition of goods in logistics consequently simplifying the classification of
items. Whether a product is scheduled for transport, needs repair or requires tracking,
barcodes can supply this data. Also, the transmission and quick storage of data are expedited
(Bajdor et al., 2018).
Electronic Data Interchange (EDI)
Electronic Data Interchange facilitates instant information transfer. The data is usually
stored in a financial record. This transmission is simplified through the establishment of
global principles in regards to the formatting of the documents. A record in EDI format is a
financial document that has been specifically designed with the aim of electronic data
transmission. Subsequently, a physical representation of records is done away with, and
effectiveness in processes is enhanced. It is easy and links straightforwardly automated
systems of firms that are working together. In reverse logistics processes, information
transmission regarding returned goods between different sectors such as a retailer and
producer is enhanced. A significant amount of time and revenue is salvaged through this
computerization of records that are associated in the management of returned items.
DATA COLLECTION IN REVERSE LOGISTICS
References
U.S. Department of Education, Office of Educational Research and Improvement (n.d.).
Different methods of collecting information.
V. Jayaramana, A. D. Ross and A. Agarwal (2008). Role of information technology and
collaboration in reverse logistics supply chains
y_and_collaboration_in_reverse_logistics_supply_chains
P. Bajdor & A. Brzeziński (2018). The Role of IT Solutions in Reverse Logistics
Management Support.
