Reverse logistics

Reverse logistics, between legal obligation and customer satisfaction

After developing delivery solutions designed to optimize the customer experience, e-commerce players are now focusing their efforts on reverse logistics. But beyond customer satisfaction, the challenge for online retailers is also to meet their legal obligations.

Above all, a legal obligation

Under article 221-18 of the French Consumer Code, "consumers have a period of fourteen days to exercise their right of withdrawal from a contract concluded at a distance".

An argument for customer satisfaction

This legal obligation is undoubtedly in the interests of customer satisfaction. Knowing that they have this freedom will encourage consumers to order more easily.

Costs not to be underestimated

Shipping costs for the first shipment, transport costs for the returned parcel, processing of the returned parcel, reshipment of a new product - these are just some of the costs involved in returning a product Managing returns is therefore a highly strategic issue for e-tailers, as it represents a significant cost. To limit these costs, e-tailers need to simplify their returns policy as much as possible, and limit the number of interactions between the consumer and customer service.

The main levers for optimization

Upstream organization

In order to optimize reverse logistics, it is first necessary to identify all possible upstream scenarios, and for each of them, to identify the appropriate solution.
In addition, to reassure buyers about the possibilities open to them in terms of returns, the company must define its guarantee conditions upstream, and facilitate access to this information for the end customer.

Optimizing return flows and processes in the warehouse

To optimize return flows and processes in the warehouse, logistics platforms need visibility. However, the diversity of information systems adopted by each player in the supply chain contributes to hampering this visibility.

The advantages of a WMS in optimizing reverse logistics

Deploying a WMS offers a number of advantages when it comes to optimizing reverse logistics. Here are just a few: real-time inventory management, increased reactivity, organization of stock placement, tracking of all internal and external logistics flows. The WMS is therefore an indispensable tool in supply chain management (SCM).

Process acceleration

To optimize reverse logistics, it is essential to speed up product restocking. The longer a product remains in the system, the more its value is likely to decline. Conversely, the faster a product is returned to stock, the faster it can be reintegrated into a secondary sales channel.

Inventory optimization

For a company, it's vital to work on inventory optimization. The aim is to avoid overstocking and understocking. Over-stocking penalizes investment in other areas. Conversely, under-stocking can lead to stock-outs and loss of sales. Having a clear view of inventory in the reverse flow enables you to avoid under- or over-stocking.

Ecological responsibility dimension

Reducing environmental impact is an increasingly important aspect of returns management, and will undoubtedly become a real selling point in the years to come Steps taken in this direction include the creation of local return channels, the reinjection of finished or semi-finished products into production processes (which limits the use of virgin raw materials and generates lower energy consumption), and the sale of reconditioned products from end-of-life goods.

Reverse logistics is a major commercial challenge for the retail industry, as it determines customer satisfaction and loyalty.