Forbes Magazine Suggestions to Reduce Reverse Logistics Costs PDF Print E-mail
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Written by Paul Rupnow   
Thursday, 01 February 2007

From Reverse Side Of Logistics: The Business Of Returns
Robert Malone, 11.03.05

Forbes outlines some great suggestions for reducing Reverse Logistics costs:

  1. Slash unnessesary returns to reduce credits issued - "A company that currently doesn’t monitor its returns can cut between 15% and 30% in credit issuance by correcting this process"
  2. Further recommendations: 

    "Suggestions for those facing reverse logistics cost or processing problems:

    1. The outsourcing of reverse logistics to a third party logistics provider may be the wisest choice.

    2. The way toward success in the reverse logistics process is through higher visibility of selective information and as close to "real-time" process knowledge as possible.

    3. A smart reverse logistics system can prevent the cost of processing returns that are not actually the responsibility of the manufacturer and prevent useless transportation before it begins.

    4. Above all, keep the process simple and inexpensive for all involved."

  3. Transportation costs: - "Transportation and handling costs can be trimmed or eliminated entirely through consolidating or optimizing shipments--especially catching non-returnable products or items that should be disposed of before they get on a truck for that long trip home"

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