Everything that happens after the sale or to unsold products is an aspect of reverse logistics or returns management. For retailers, manufacturers and supply chain professionals, an inefficient return, refurbishing or reselling process can mean significant financial losses, including increased operating costs and inventory write-offs.
RETURN: Initializing the process
The returns process begins with customer support. Warranty management and product support are often outsourced. Contracts for asset transportation are often managed by this group that manages product returns. Throughout the reverse logistics cycle, an asset may be moved more than seven times — sometimes oversees and back in containers.
RETURN: Dispositioning
The review process begins with triage. It is generally performed at the point of return — though it may be outsourced. While also performed in triage, general practice is to inspect the product. Triage options may include: repair and return to user; return to stock - no issue found; repair and refurbish; or send to salvage. Each of these options may involve different service providers and practices.
Repair/Refurbish
Depending on the product category, certifications, authentication, test equipment and trained staff may be required. In some cases, products may be cycled into remanufacturing.
Repackage
This task may be performed either by the repair facility or their reseller as per contract. It may require special equipment including labeling processes. Different packaging requirements are set for assets to be resold and those assets that are moved in bulk. Often, they are re-kitted to add value for resale.
Resell
Different channels for the secondary market exist for B2C, B2B, bricks-and-mortar and ecommerce outlets. Some primary vendors also resell refurbished goods. The secondary channel may be responsible for product support and warranty on refurbished products. Liquidators often act as intermediaries. These are key components of the circular economy.
Reuse
At a product's end of life, an asset can be harvested or re-purposed. Salvage value can be significant. For some products, there are a returned-goods market, e.g. cell phones, while others may be upcycled for creative reuse.
Recycle
The industry goal is to eliminate landfills. Some manufacturers claim landfill usage is as low as 1% of product weight. Recycling often requires shredding or other processes to certify destruction and/or create materials.
