Reverse Logistics Software - Using It Can Help Your Bottom Line

Reverse logistics software relates to software that is used, installed and implemented in an organization for the purpose of minimizing the levels of inventories and with an overall aim of maximizing customer satisfaction.

Reverse logistics refers to the complete process of planning, controlling and implementing the effective and efficient flow of raw materials, semi-finished goods, related information and finished goods from the point of consumption to the point of origin for the purpose of effective disposal. In other words, reverse logistics includes the processing of raw materials, semi-finished and finished goods using the rules of disposition. It is also used to denote the complete process of returning reusable storage devices such as containers for the purpose of reuse.

The factors that contribute to reverse logistics are as follows: 1. Recall of product by the organization itself. 2. Damages in the stage of shipping or delivery. 3. Faulty and tampered goods. 4. Excessive adjustments of stock. 5. Remorse from buyers.

The process of reverse logistics includes the following stages: * Repair * Refurbishment * Re-manufacturing

These stages help with the addition of value to satisfy the needs and requirements of the customer with regard to exchange or reuse of products. Therefore, it can be concluded that reverse logistics includes chargeable services for in-and-out of warranty products.

The main reasons why reverse logistics is slowly becoming more and more utilized in today's competitive business world are:

1. Increased levels of value recognition from the returned merchandise. 2. Need to provide high levels of customer service and satisfaction. 3. Improvements in the level of cash flow. 4. Lowering inventories. 5. Regulatory requirements for disposition of products. 6. Creation of revenue opportunities. 7. Reductions in the levels of supply chain-related costs.

Slowly and steadily, the concept of reverse logistics is depending more and more on automation because of its rising demand for applications, which are normally web-based in nature, for the purpose of streamlining the complex procedures of returned goods. Reverse logistics processes are usually paper-intensive and require the installment of good in-house logistics management information systems for deriving optimum results.

Reverse logistics includes all product-related information or an application that is returned for the purpose of after-sales service or repairing by the customers of the organization. It tends to help the manufacturers to raise the levels of customer service and satisfaction by providing the customers with an entire view of the supply chains prevalent in the organization.

It is commonly believed that benefits can be reaped from reverse logistics only after proper ascertainment of the needs, requirements and business objectives of the organization. At this time, it is believed that most business organizations throughout the world do not have supply chain management systems which will allow the easy incorporation of effective reverse logistics software.

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