Product Returns

Product Returns

If you have a simple supply chain - say manufacturer to user, then returning goods is fairly simple. Most supply chains are not so simple. Getting goods back is like swimming against the tide. Most supply chain systems are not designed to efficiently take products backwards through the chain.

Some low value product returns have often been disposed of as the cost of return would not be viable.

New Legislation

As you are no doubt aware, things are changing. Consider these pieces of legislation:

WEEE Directive

Packaging Waste Regulations

Landfill Tax

These regulations have made us all think more critically about what types packaging we use and how reverse logistics can cope with returns.

Economics

Even without the pressure exerted by legislation, surely it makes economic sense to properly take the cost of product returns into account. There are currently proposals to force product manufacturers to take into account the full life cycle of the products that they produce. Once again, surely this already is an economic necessity?

By taking into account product returns, supply chain operators can:

Accurately define the true cost/benefit of a given product
Reduce wastage and therefore reduce costs
Improve the product design to take into account not only its working life, but its "after-life"
Help to improve our environment

Expertise

We are experts in this area. We can adapt your supply chain to efficiently distribute returns and deal with returns administration.

We will develop a decision-making process on what to do with them. Such decisions may include:

Physical return to source
Physical return to other point
Use of the National Clearing House
Local re-working of product
Long-distance re-working
Disposal, using a compliance scheme to discharge obligation
Sale, as is

All of the above are subject to the passed WEEE legislation

If you need expertise in the area of product returns, please contact us