Reverse Logistics and Automation

Reverse logistics involves moving goods from customers back to the sellers or manufacturers and is required for processes such as return or recycling after a product has been delivered to a customer. We are in a period of evolution as automation and robotics are improving this aspect of logistics. According to the website Logistics Management “Typically, reverse logistics and returns management has been a highly manual process. Now, we’re seeing an increase in automation via the use of robotics in distribution centers, such as autonomous mobile robots (AMRs), automatic guided vehicles (AGVs), and automated storage and retrieval systems (ASRS).”?

We spoke with experts in our company, and this is what they had to say:?

Per Alejandro Mu?oz, GrowthMaster at Hubtek,?“The world aims to be more resource efficient, find better ways to have less impact on the carbon footprint, and look for those types of products and companies that care more about how our environment is changing.”?

In that line, the logistics companies need to use this kind of new way to do and see things as an advantage to expand their business since Shippers eventually will need not only a company that moves their products from point A to point B but might need a provider that offers a complete service capable of closing the circular economy loop.??

Now, technology will be an essential player in this reverse logistics business that is forecasted to grow from $178 billion in 2022 to $289 billion by 2027. We need to be more efficient, quick, accurate, and cost-effective if we want to strive within this new niche. ?

By opening our scope and understanding of a product's complete life cycle and its impact on our world, we could find ample opportunities for expansion into the reverse logistics market.?

Valentina Becerra, GrowthMaster at Hubtek, affirms that many companies don’t have the right systems in place to handle a large volume of returns. The National Retail Federation estimated that around $218B of online purchases were returned last year, which created a significant cost challenge for retailers.?

Some logistics service providers specializing in reverse logistics are piloting the use of robotics, automation, and testing other digital technologies like artificial intelligence to provide logistics insights for product handling, inspection, and allocation to the best channel possible.?

To conclude, to optimize reverse logistics processing and reduce the cost impact of returns, having an automated returns solution in place can help retailers to efficiently manage peak return season.?

Finally, we heard from Elizabeth Velez, COO at Hubtek, who considers that?automation is having a significant impact on reverse logistics. Some ways in which automation is affecting reverse logistics is when showing improved efficiency, by automating you can reduce manual labor and minimize errors. It has also increased traceability.?

Three important topics to consider:?

1. Reduce Labor Cost:?Replacing manual processes with BOTs that can handle tasks more efficiently and with greater accuracy.?

2. Improved customer experience: Providing faster and more accurate responses to returns and repair requests and by reducing the time it takes to get products back into the customer's hands.?

3. Improved visibility and tracking: RFID (radio-frequency identification) and GPS (global positioning system) can provide real-time tracking and visibility into the location and status of returned products and materials.?

Overall, automation is transforming the reverse logistics industry by improving efficiency, traceability, speed, and customer experience. As a result, companies that invest in automation are likely to benefit from lower costs, increased productivity, and improve customer satisfaction.?