How to Find The Right Reverse Logistics Partner

As consumer demand for e-commerce products continues to grow, more than ever, there has also been a demand for better returns management processes. Reverse logistics plays a key role in achieving that. That said, in an increasingly complex freight world, getting it right depends on whether your online store or physical retail outlet can find the right reverse logistics partner.

A good reverse logistics partner is crucial to run a successful returns management operation that customers can trust. A less-than-ideal partner can lead to several issues, including a process slowdown, disappointed customers, and obfuscated workflows for everyone involved.?

To find the right reverse logistics provider, you need to know what to look for. The following checklist can help:

1. Robust service offerings

2. Experience and expertise

3. Customer service and communication

4. Ample investment in technology and infrastructure

Although the list covers what you need, you should understand each item in depth for better outcomes. Read our piece for a more in-depth view.

Industry Voices

"Leaders win through logistics. Vision, sure. Strategy, yes. But when you go to war, you must have toilet paper and bullets at the right place and time. In other words, you must win through superior logistics."

• Tom Peters, Business Management Expert

Know Your Term

Reverse Logistics

What is it?

As the name implies, reverse logistics roughly 'reverses' the traditional logistics process. It is the process of managing the flow of goods from the consumer back to the supply chain. If you think about it, we are used to seeing the flow of goods from the supply chain to the consumers.

However, with reverse logistics, retailers, manufacturers, and supply chains across various industries can now collect goods from customers for a variety of reasons, including recommerce, refurbishment, repairs, recycling, unwanted products, and selling pre-owned products back to a business.

Thanks to the rise of e-commerce platforms worldwide, reverse logistics has become a key feature in supply chain operations. It ensures customers can seamlessly return purchased items that do not meet their needs.

Why is it Important?

Reverse logistics has been pivotal to modern retail operations, especially following the dot-com boom. This was when online retailers, e-commerce, marketplaces, and supply chains emerged. Reverse logistics provided a way for online retailers to woo customers by assuring them of the possibility of returning an order if it does not meet their expectations.

Following the dot.com boom, when online retailers, e-commerce, and online marketplaces emerged, reverse logistics allowed them to woo customers by assuring them they could return an order if it did not meet their expectations.

Since then, it has helped them enhance:

1. Product returns by ensuring the efficient handling, coordination, and control of the return process, whether from the end customers, retailers, or other supply and distribution chain parties.

2. Continuous improvement by serving as a great data source for customer feedback and measuring key performance indicators across the logistics chain.?

3. Recovery and value maximization by focusing on recovering value from returned goods. It could do this through refurbishment and recycling.

4. Sustainability and corporate responsibility by allowing retailers and manufacturing businesses to dispose of goods properly when necessary.

What’s Up in The Market?

A lot, as usual. Here are the top highlights of the month for people in retail.?

CBP Seeks Industry Feedback on Tightening Rules for Low-Value Imports

The U.S. Customs and Border Protection (CBP) is calling for industry feedback on proposed regulations to address the increasing risks of low-value imports, AKA de minimis shipments. The call comes amid a 50% jump in de minimis shipments, with CBP processing over four million per day — an increase of nearly 50% from the previous year.

Current regulations require limited information for these shipments, making it difficult for CBP to detect counterfeit goods, illicit drugs, and other contraband. The proposed changes would require additional data collection and create a fully electronic filing process to improve oversight and enforcement. CBP has also emphasized that increased data collection will enhance enforcement and expedite clearance for compliant shipments.

Gen Z Embraces In-Store Shopping for Experience and Convenience

In what can come off as a surprise, research from the payment platform Adyen shows that Gen Z continues to favor in-person shopping. Nearly three-quarters of the customers visit physical stores at least once a week, with in-store discounts, immediate product availability, and convenient locations driving this preference.

Checkout speed and payment options play a major role in purchasing decisions. Long lines cause three in five Gen Z shoppers to leave without buying, and more than a quarter abandon their purchases if their preferred payment method isn't available. Beauty and luxury items are among the most popular categories for in-store purchases, with Gen Z choosing physical stores at a much higher rate than older generations.

Businesses Rush Shipments Ahead of Tariff Uncertainty

A tentative agreement has prevented a strike at major U.S. ports, but shipping companies have already been moving goods ahead of potential trade tariffs under the incoming administration. A survey of supply chain executives found that 78% had requests to expedite shipments due to concerns over tariff increases and labor disruptions. Goods from China led the surge, with shipments from Europe, Mexico, Vietnam, and Malaysia also increasing.

Companies in industries like apparel, appliances, and manufacturing moved inventory earlier than usual to avoid possible cost hikes. Walmart and Columbia Sportswear saw significant spikes in imports, with Walmart's China-originating shipments up over 33% from last year. Shippers are also adjusting sourcing strategies, shifting production away from China to countries such as Vietnam, India, and Indonesia. Concerns over tariffs on Mexican goods have put Texas in focus as a key trade hub.

The Feature of The Month

Did you know that even with high return volumes, you can create efficiencies and increase productivity with every customer return? Our automated returns solutions enhance your supply chain’s ability to streamline returns management for both the business and the customers.

Our Key Features Include:

• Easy & Self-Service: Customers can easily initiate and track returns through a branded online portal.
• Reduce Errors & Improve Accuracy: Automated intake checklists and data visibility minimize errors.
• Process Faster & Maximize Availability: Streamlined processing reduces handling time and returns products to stock quicker.
• Automate Policy Enforcement: The system can automatically approve, reject, or flag returns based on your return policy.

Here is why you need it:

• Customer Satisfaction: Easy returns lead to happier customers, who are more likely to repurchase.
• Faster Implementation: The system can be implemented in 4-6 weeks.
• Increased Efficiency: Automation frees up staff time and reduces manual errors.

Scenario Spotlight

In a fast-paced world where technology reigns supreme, Jabra, the world leader in headsets, speakerphones, and video solutions, was at a crossroads. The legacy platform needed a permanent solution for its global B2B and B2C returns, which prompted a search for the perfect partner to streamline its reverse logistics operations.

After meticulously evaluating seven critical criteria, including industry expertise, technology level, and project management skills, Jabra found its ideal partner in ReverseLogix. This careful selection process set the stage for a transformative partnership that led to the creation of Jabra Service Net (JSN), an innovative self-service online platform that streamlined warranties, claim replacements, shipment tracking, and more for customers.

Implementing ReverseLogixs' solution consolidated diverse return flows into a seamless system, boosted customer satisfaction scores, and alleviated workload pressures. The back-office team tasked with managing returns lauded the newfound efficiency and transparency in handling claims, thanks to the comprehensive overview provided by the system.

As the partnership between Jabra and ReverseLogix blossomed, it became evident that they shared a commitment to quality solutions and a vision for sustainability and continuous improvement. Together, they forged a path toward a future-proof solution tailored to meet evolving market demands and customer needs.

Testimonials

“To really progress in this journey, we decided to pursue a more specialized partner who grasps the complexity of reverse logistics.”?

• Martin Hartvigsen, VP of Support and Services, Jabra.