Supply chains share common goals: increase productivity, reduce costs, mitigate risks. Common goals for reverse logistics are to improve customer satisfaction, cut costs, maximize return on assets. Reversing the supply chain means taking in returns, recalls, damaged goods and overstocked merchandise and recapturing its value or disposing of it. With the popularity of online shopping, the supply chain has become more multifaceted, increasing the importance of an organization’s reverse logistics strategy and inventory management practices.
Of all products sold, an average of 8%-12% are returned, and the cost to return those units is 2-3 times more than bringing them to market.