Companies embrace reverse logistics in their operations to maintain the relationship with customers and to regain value from the products returned. Reverse logistics improve the customers’ experience with the items and increase their satisfaction since they can change the product for another or regain value from the fatigued item. This report explains how the reverse logistics of the business process improves consumer satisfaction. Customer satisfaction is often based on how the business treats them. If the business treats them as superior contributors to its success and values them, then the customers become loyal to the business. A proactive relationship between the business and its customers determines the reverse logistics policies (Banihashemi et al. 2019). Consumer satisfaction is also vital for brand imaging since consumers promote the business through referrals. Suppose the two have a positive relationship enhanced by reverse logistics. In that case, the customer will recommend others to the business since they can return items that do not satisfy their needs or those that have completed their usefulness, thus regaining a section of their spending.
The report also identifies the reasons that contribute to the growth of the reverse logic of businesses. Some of the reasons include improving the customer care experience, maintaining an efficient flow of commodities, reducing the cost, decreasing the risk attributable to an asset, and completing the item’s product life. The customer care department in businesses helps resolve significant customer dissatisfaction issues in the business. The reverse logistics process aims to solve the core issue of consumer dissatisfaction and enables effective negotiations between customers and firms (Julianelli et al., 2020). Reverse logistics maintain an efficient flow of commodities and help them complete the product cycle since the customers return the remains to the manufacturer for remaking and recycling. This eliminates the disposal of waste products into the environment, thus conserving the surroundings. Reverse logistics are essential for product development and protecting the company’s reputation and brand image.
Reverse logistics of businesses is how customers return goods to the business. The customers return the products for various reasons, such as correcting defectiveness and recovering value from the products to increase revenue and minimize expenses (Cortés & Alarcón, 2018). Reverse logistics follow a similar supply chain as used in the original purchase. The process involves returns, repairs, refurbishment, and dismantling the items to regain some value from them. Reverse logistics is critical in the business since it completes the product life cycle and determines the future relationship between the customers and the business. A company’s acceptance of the product the customer returns creates a good relationship between the two since the consumer will always rely on the company to dispose of or change the items.
Effective communication between the business and its customers’ stock availability, better generation of return on investment, proper asset utilization, and reduction of losses and unplanned revenue are the benefits attributable to the reverse logistics of the business process (Pacheco et al., 2018). Communication enhances proper understanding between the seller and buyer by influencing the agreement-making between the two parties. When purchasing the commodities, the buyer demands all the terms in the deal, including those concerning the reverse logistics of the business. Thus, the process strengthens communication to relay the most practical information. Another benefit is creating a better return on investment for the investors and consumers. Reverse logistics maximizes the utility of an item by regaining some value from the item, recycling, reusing, and dismantling the goods. This increases the return on investment for both parties since they gain more from the commodity.
The report discusses the demerits obtained from reverse logistics on the business and the customers. Although the process has many benefits, it still has several disadvantages that affect the business and customers. First, the customers reversing the products incur high reversing costs since they have to chatter the transportation cost back to the retailer (Nie, 2018). High reverse logistics cost reduces the amount regained through the process. Second, there is an inadequate labor force to handle the returns because most companies focus on selling the products to consumers and not receiving rejections from customers. Businesses have to employ huge customer care desks to handle the returns and customers without interfering with the main business. Furthermore, there is an inability to understand the rationale of the returns. Most businesses do not understand how to balance omnichannel retail with reverse logistics. Thus, reverse logistics is inappropriate, especially in small-scale enterprises.
Reverse logistics influences many decisions within the business about the economic control of finances and the cost of regaining the assets from the buyer. The process involves increasing costs for the retailers since they have to refund a section of their revenues to the customers for returning the items (Kosacka-Olejnik & Werner-Lewandowska, 2020). Supply chain management must identify modern means of handling customer reversal requests. The report discusses the reverse logistics of businesses and emphasizes events that contribute to their success and failures and the impact it has on the business and consumers, both positive and negative.
References
Banihashemi, T. A., Fei, J., & Chen, P. S. L. (2019). Exploring the relationship between reverse logistics and sustainability performance: A literature review. Modern Supply Chain Research and Applications. Web.
Cortés, P., P., & Alarcón, F. (2018). Identification of reverse logistics decision types from mathematical models. Journal of Industrial Engineering and Management (JIEM), 11(2), 239-249. Web.
Nie, J. (2018). Location decision of logistics distribution centers based on artificial neural network. NeuroQuantology, 16(6). Web.
Julianelli, V., Caiado, R. G. G., Scavarda, L. F., & Cruz, S. P. D. M. F. (2020). The interplay between reverse logistics and circular economy: Critical success factors-based taxonomy and framework. Resources, Conservation and Recycling, 158, 104784. Web.
Kosacka-Olejnik, M., & Werner-Lewandowska, K. (2020). Reverse logistics as a trend of XXI century–state of art. Management Systems in Production Engineering. Web.
Pacheco, E. D., Kubota, F. I., Yamakawa, E. K., Paladini, E. P., Campos, L. M., & Cauchick-Miguel, P. A. (2018). Reverse logistics: Improvements and benefits when shifting parts exchanging process in a household appliance organization. Benchmarking: An International Journal. Web.