Returns can be tricky. If handled with care, it can widen profit margins

Reverse logistics should be an integral part of supply chain management. In a comprehensive automated SCM, it is in conjunction with order management system (OMS), and provides full proof dispatch and return policies. A planned and systematic line of work for reverse order is crucial for eCommerce, as it witnesses maximum returns and exchanges than a brick-and-mortar store. Online retailing has opened several options for shoppers with regard to delivery and returns & exchanges. For proper channelizing of returned goods, OMS provides vital information required for alignment of data with respect to return pick-up, logistics, transportation and route optimization.

Reasons for Streamlining Reverse Logistics

Huge purchasing often happens during festive and holiday seasons for gifting and other purposes. The rate at which online shopping escalates, at the same pace there’s requests for returns as well as exchanges for reasons ranging from not required, wrongly ordered, defective fitting and many. A retailer needs to pre-plan moves for maximizing this opportunity to improve customer experience for gaining return customers and not to scare them away. Also, the 5Rs of reverse logistics – return, refund, repairs, reselling, and replacement need to be addressed for improving business profit margins.

• Reason Behind Return: No matter how robust or complete online retailing becomes, there is always a scope for reasons for returns. It can be anything between difference in the look of the product from what it appeared online, or delay in the delivery decimated the need, or defective product or not as expected. If these reasons can be graphed and studied, flow of return and exchanges can be controlled.

• Better Customer Satisfaction for eCommerce: If a retailer can guarantee surety of effortless return or exchange policy, customers are not scared of online shopping. Their inhibitions and fears related with ordering wrong merchandise, money and time wastage are adequately taken care by sharing of requisite information. Customers feel confident, it builds their trust in the retailers, which is a positive sign for the business of a merchant.

• Improved Inventory Management: With a seamless integration of reverse logistics and inventory management, retailers get real-time information about the movement of product through a single window. Supply chain management becomes more holistic as returned order can be stocked at the right warehouse and recycling of the stock can be done without incurring any loss.

• Transportation: eCommerce has reaped profits for small scale businesses, with limited funds and resources. With an integrated reverse logistics and order management, they can track orders and consider outsourcing logistics and transportation to 3PLs for efficient and cost-effective handling of return process.

• Financial Advantage: Once there is system to track an order and its lifecycle, resources can be used for improving the quality and for R&D. This can bring down the possibility of returns.

How Reverse Logistics Process is Simplified with an OMS?

A market leader would initiate and integrate the reverse logistics process with Order Management System. Each SKU is generated with options for return, especially if it is for online vendor. Since the complete process is automated, it is easy to track and obtain real-time information about an order. In case of a query, customer service is well-equipped to inform the real status about pick-up, return or exchange. This visibility and transparency in communication serve as a pacifier for customers and a belief is established for future.

An automated OMS provides following things, and thus simplifies the most complicated and tricky return management process.

• Provides SKU which improvises tracking of an order.

• Provides policies for return and exchanges, for efficient and smooth reverse logistics.

• Improves customers control over placing an order, there is transparency, customer-friendly rules for return and exchanges if required and enough timeline within which return can be initiated if not required.

• Warehouse Management System ensures there is no overstocking of products on return, and it is allocated and transported at the right place.

• OMS helps in route optimization, coordination with inventory management, and warehouse management.

• Real-time analysis of the frequency of return of an item ordered from a location or a customer can help in improving coordination and cookies can show only products which are of interest to a customer.

When both reverse logistics and OMS work in close proximity, there is continuous visibility over product movement and demand, a pictorial representation of the life of a product can be achieved. The automation reduces manual involvement, so the herculean task which involved a lot of time, money and manpower, is no more complicated and delayed. Reports are available in real-time either for timely withdrawing of product from the market or for manufacturing more before running out-of-stock.

By incorporating right technology, supply chain management can remodel and help in scaling business in the shortest possible time. For every business, irrespective of size and niche, SCM is the backbone and real tool to connect with the end customer.

Advatix CloudSuite™: Rethinking Reverse Logistics for the Modern Retailer

Navigating the complexities of reverse logistics can be a daunting challenge for many businesses. The intricacies of managing returns, exchanges, and quality control across different channels often prove cumbersome. But what if there was a solution tailored to simplify this entire process?

Enter Advatix CloudSuite™, a beacon of innovation in the realm of Order Management Systems (OMS). With this cutting-edge platform, businesses can:

• Enhance Inventory Traceability: Manage returns and exchanges across various channels with an impeccable precision that ensures every item is accounted for, mitigating the risks of inventory discrepancies.

• Prioritize Customer Satisfaction: By offering a user-friendly interface for product rental and return processing, Advatix CloudSuite™ ensures that customer interactions are smooth and hassle-free. This not only results in immediate satisfaction but also fosters long-term loyalty, encouraging repeat purchases.

• Efficiently Handle Carrier and Customer Returns: Whether it’s a return initiated by a carrier or directly by a customer, Advatix CloudSuite™ streamlines the entire process, reducing operational bottlenecks and enhancing efficiency.

• Uphold Quality Standards: With an in-built quality control mechanism, every returned item undergoes rigorous scrutiny, ensuring that only products that meet the brand’s quality benchmarks make their way back into the inventory.

• Stay Updated in Real-time: With real-time status updates, businesses can keep their finger on the pulse, always staying informed about the status of every return or exchange.

In a world where customer expectations are continually evolving, it’s essential to stay ahead of the curve. By integrating Advatix CloudSuite™ into your operations, you’re not just adopting a tool but embracing a vision—where reverse logistics is simplified, customer satisfaction is paramount, and operational excellence is a given.