Outsourcing Reverse Logistics
6 May 2008Outsourcing Reverse Logistics is a recent article posted Modern Materials Handling.com that has an interview with Tim Konrad of GENCO (my former employer) - it’s a niche for GENCO that it has been rather good at exploiting . He notes the following key points concerning reverse logistics as practiced by a 3PL:
Do it in volume
Establish vendor agreements
Implement a software package
Receive, inspect and dispose
Reconciliation
If you wanted to know what happens to a product that you returned for whatever reason:
“Ideally, you want to take that product and return it to the same configuration it was in when it left the DC,” says Konrad.
When that happens, the product may be put back on the shelf and sold again.But that’s not always possible. For that reason, a 3PL may return the product to the original vendor, especially if it is a recalled item, sell it in a secondary channel where it will end up in discount stores,donate it to a charity for tax incentives, send it to recycling, or destroy it.
"…sell it in a secondary channel" - If you don’t already know, that means Ebay. You can even buy stuff a pallet/truckload at a go which only goes on to say that what works for diamonds also works for returns - at a different scale.
Tags: Reverse Logistics, Reverse Supply Chain, Outsourcing to a 3PL, How returns flow?
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May 17th, 2008 at 4:25 am
Nice ! Outsourcing is the Up growing industry…
May 27th, 2008 at 2:11 am
“Nice ! Outsourcing is the Up growing industry” - Yes I second that
July 24th, 2008 at 8:36 am
Reverse Logistics operations are labor-intensive
despite the variety of software pacakges out there to streamline the process.
Reverse Logistics is getting out of the back room, and into the board room.