Latest Trends in Reverse Logistics

 

 Hi all! I'm Sreelakshmi M N, second year MBA student at Amrita School of Business Coimbatore. In this blog let us discuss some of the latest trends in reverse logistics.

As shippers search for ways to remain competitive and prevent possible coronavirus disruptions, confusion about the US-China and the 2020 US election, taking time to concentrate on returns is a chance for change. Returns will become as important as outbound freight this year, and shippers need to know the top trends to expect in reverse logistics.

1. To meet customer expectations, Reverse Logistics must evolve

 From quick, hassle-free return processes to free, hassle-free, and unlimited return capabilities, consumer expectations have continuously changed. In other words, for whatever reason, consumers expect to return a product at any moment, and shippers who do not get leverage of their supply chain will know increased costs and possible issues resulting from the continuation of the reverse logistics impact.

2. Efficient reverse logistics automation allows better package auditing and lower costs.

Automation within reverse logistics also facilitates better auditing of packages and lower costs. The implementation of automation represents one of the main advantages and the top trends for the coming year in reverse logistics. Automation can be leveraged to route requests for customer returns, produce packaging and labeling materials, prevent delays in returning items in brick-and - mortar stores, and give the customers the opportunity to send back orders, and much more.

3. Traceability within Reverse Logistics will reduce the risk of fraud.

Another dominating theme for 2020 would also be traceability within reverse logistics. As companies across the globe are looking for ways to deploy more track and trace capabilities, including the launch of the supply chain block chain, traceability will become the core of all visibility initiatives in the coming year.In addition, traceability decreases the risk of fraud, and with market confusion about the state of China's raw materials and goods, it is now time for grey market traders to set up shops and try to trick existing supply chain leaders. Fortunately, further traceability can continue to enable shippers with block chain and additional visibility steps.

4. Smart planning developments in reverse logistics will improve sustainability

In reverse logistics, smart planning developments also include the incorporation of the Internet of Things ( IOT), smart analytics, automation of robotics processes, artificial intelligence , machine learning, and metrics to enable better planning and reverse logistics. Since reverse logistics relies heavily on consumer details, smart planning needs to include customers and produce data at every step of the way.

5. Circular supply chains can further encourage efficiency of reverse logistics

The subject of circular supply chains has made headlines in recent months, but the circular supply chain will begin to encourage reverse logistics effectiveness in a profound way in the coming year. Given that reverse logistics requires the return of goods to shippers, suppliers and third parties, it would make sense, first of all, to use damage-free, unopened goods to satisfy additional orders and to reduce the costs associated with the re-storage or re-shipping of the order.

6. Throughout the coronavirus outbreak, full exposure and diversification of parts' sourcing strategies will reign.

As the coronavirus is increasingly on its way to disrupting the global supply chain, the implementation of maximum visibility and diversification of parts procurement strategies to resolve possible obstacles and disruptions arising from quarantined zones would naturally entail more interest in reverse logistics.In the automotive or electronics industries, this impact could be more valid than any other, and supply chain executives who understand the need to diversify and gain insight into the supply chains of their parts will make the required adjustments to prevent possible delays during the year and in the future.