How to improve supply chain with reverse logistics?

Reverse logistics is the process of monitoring the set of activities that are conducted after the sale of a product to recall value and terminate the product's life-cycle. This might involve how the product could possibly be recycled or reutilized, how the goods should be disposed of properly after use, and any other practice through which the expired product can create value. Logistics companies in Chennai understand that the reverse logistics which directly affect the supply chains the most are the return of products to the manufacturer from the end consumer.

The supply chain can be improved by managing the reverse travel of your product and also, aid you avoid making the same fault again. Apart from this, reverse logistics management enable you to reuse as many components of your product as possible.

Analysis of the flow of reverse logistics in your supply chain-

To understand the flow of returned items entering your supply chain, there are mainly four supply chain analytics which are as follows-

1. Quantity: Monitor the volume of returned products. Are the same products being sent back over and over? Is this happening in huge quantities? Analyze these questions and you will probably find a bigger issue than just a few defective units. The businesses which are severed by logistics companies in Chennai need to consider a recollection or an overhaul of their manufacturing process.

2. Sales percentage: Analyze what percentage of your sales are lost due to product returns and also notice how many of these returned products can be recombined into your supply chain using reverse logistics? The average manufacturing firm will spend 9-15% of total revenue on the returned products process, according to a study by the Aberdeen Group. Think ways how can you still make a profit on a loose and what can you do to control these losses of profits?

3. The condition of the returned products: Determine the patterns of failure in the returned product? Is the product failing occur after a particular operation? Quality assurance (QA) and error reproduction are actually important at such points. Figure out what went wrong and accept and correct the issue before it happens again.

4. Economic value: Without analyzing and managing reverse logistics, a company could be losing millions of dollars. But the electronic agencies manage to turn product failure into revenue by making the best use of reverse logistics. As per “Recovering Lost Profits by Improving Reverse Logistics,” electronics traded in secondary-markets “reflected an estimated $15 billion (traded) in the United States.”

How TruckGuru helps in managing your reverse logistics?

Some of the big logistics companies in Chennai help their customers to manage reverse logistics and TruckGuru is one of them. They help the businesses to reduce the cost and earn profit out of their returned products.