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Advancement of Reverse Logistics by the Use of Technology

Advancement of Reverse Logistics by the

Use of Technology

How can retailers improve their reverse logistics processes by using technology?


Advancement of Reverse Logistics by the

Use of Technology

The process of Reverse Logistics (the return of purchased goods back to the origin) is
a procedure that has not been fully exploited by the use of present technology. As stated in
Smart Returns (2018), most firms are still processing data associated with return logistics
manually. This is a considerable contrast as compared to the implementation of technology in
forward logistics (the process of delivering products to the consumer) which continues to
integrate technology to quantify and computerize the various aspects in the procedure such as
inventory and tracking. The Reverse Logistics process could profit tremendously by the
advancement of technology. As much as it is hard for companies to envision in what way
technology may be a great asset to the returns process, there are a wide variety of implements
that can be utilized in all the stages involved in the process. This addition will ensure the
whole process is simplified, faster and more effective. Explained below are ways to automate
processes in the reverse chain.
Applications that enhance the returns process. Applications can be used to make a
contrast between the various forms of shipping methods available for the returned products
and select the appropriate one suitable for a customer’s needs. Some applications currently
are made to simplify returns and at times provide immediate reimbursements concerning
money. This will, in turn, provide enhanced customer experience.
Computerization of Inventory. The time-consuming process of taking down
inventory manually slows down operations of a firm and is also a tiresome process. There
exist solutions such as SaaS that facilitate resolutions to whether a returned product should be
repaired, destroyed, returned to inventory and also its specific shipping method back to the
customer. Consequently, a large number of items are not discarded through the use of this
form of technology in the process.

Provision of conduits for sale. Almost any type of product these days can be
sold via the internet. In the case of returned goods, suppliers do not need to market the
product in anticipation of a customer extensively. A technological solution involves listing
the good for sale in online auctions after that getting some bids from around the world.
Finally, when the bidding ends and a buyer selected, a method for shipping is chosen, and
arrangements are made to make sure the good makes its way to the customer. This, in turn,
brings in more revenue than if the good would have been resold locally.


The viability of a company may depend on how efficient its returns process is. This is
due to the growing volume of returns products which may end up becoming too costly. A
company may subsequently fail to maintain its operation leading to its closure. On the other
hand, a company’s profit margin can be increased by a substantial percentage through an
effective products’ return system. The reverse system is tedious and costly regarding
operations and reclaiming the value of the returned product can be problematic. As explained
in Jayaramana, Ross, and Agarwal (2008), detailed management and collection of data that
result from the reverse chain can be highly optimized by the use of technological systems. As
there are some stages involved, opportunities to come up with the latest form of technology
are numerous. Besides, improvement in current technology programs has been found out to
have the ability to bring about efficiencies in the reverse chain. However, it needs a
meticulous implementation to be effective in the process.



V. Jayaramana, A. D. Ross and A. Agarwal (2008). Role of information technology and
collaboration in reverse logistics supply chains

Smart Returns(2018). 3 Approaches To Using Technology In Reverse Logistics

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