Reverse logistics is difficult and costly. For retailers and carriers, sending a package is easy. Fulfilling online returns, however, is not. The process is inefficient and unpredictable, and leaves retailers with used inventory that oftentimes cannot be resold. Even consumers find making online returns a pain, having to repack, print shipping labels for and drop off unwanted online purchases.
Online consumers today have come to expect cost-free and hassle-free online returns policies. In order for retailers to appeal to this demand, they are having to bear the brunt of orchestrating difficult reverse logistics processes and eat the costs of doing so themselves.
The solution to the online returns conundrum lies in innovative technology and enhanced partnerships between shippers, logistics providers and tech-enabled platforms. Technology solutions today offer free, fast, flexible and sustainable returns to consumers and low-cost, resource-light processes for retailers, ensuring both parties are satisfied.
Route orchestration and optimization can increase capacity utilization for trucks carrying less than a full load to take on return deliveries. Retailers can enhance the use of their many omnichannel nodes to accommodate returns, using technology to determine which products should be sent back to where. Visibility technology can boost the communication between retailers, carriers and consumers, alerting consumers in real-time when their return is processed, and refunds can be made. All of these amount to a better experience for consumers, giving them immediate visibility to the cost and status of their return and greater choice in how their return is made.
Last-mile delivery isn’t a one-way street. With an increasing amount of products moving in reverse within supply chains, reverse logistics technology will become critical in the coming years for retailers and carriers alike. Those who can build reverse logistics processes into their business strategies stand the best chance to move forward.
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