02 Sep 10 Returns Processing In Relation To Third Party Logistics
Third party logistics services are shifting focus to reverse logistics, which is the practice of organizing and refining the process of product returns. For a large business to succeed, they must make their returns department efficient in their duty in pleasing the customer at an acceptable cost.
The amount of people returning items is higher than ever. With money tight with most United States citizens, and the Internet providing a common barrier between buyer and seller, there have been high returns all across the board. This means that there must be a system in place to handle excess returns, but also a system to solve the problem of why returns are occurring.
If a customer doesn’t receive a product, the business that shipped it just lost money on shipping and handling. That’s why the process of obtaining the address and organizing the business back end is important. Customers should always verify their address before placing an order, and the database of information should be well laid out, and able to flawlessly print out address labels onto packages. Outsourcing is a good option here for most businesses.
Some products are better off being fixed than replaced- such as what Microsoft does with its gaming consoles. With the gaming console fiasco Microsoft went through, it was apparent that fixing consoles for the price of shipping and low labor costs was much more effective than missing out on lost profits and enduring new restocking costs.
Where repairs are concerned, there are different systems to choose from when deciding how to get the product back to the buyer. A large operation of returns would best be suited by a system that immediately sends back a refurbished product to the buyer, and then the team repairs the one sent in once they get the opportunity to do so. Cycling through products like this will help bring down the customer dissatisfaction that comes from requiring a repair job on the product.
Remember that you are competing with other businesses that could potentially take business away as a result of dissatisfaction. One way to reduce confusion or communication errors within customers is to spend extra time making a manual and operating booklet that goes with the product. A mobile phone should have a detailed list of every feature and button. If it doesn’t, the buyer will probably return it and trade it in for a different model that is easier to learn.
In Conclusion
Return departments can be massive: sometimes spanning entire buildings and employing teams of laborers to repair, ship, and store parts or products. Ask for help when you need it; third party logistics operations are there for when you think you have outgrown the business and need to expand with grace.
Learn more on outsourced order fulfillment and healthcare kitting and fulfillment.
No related posts.
