Reducing reverse logistics costs:
an essential strategy
Reduce costs, improve the customer experience and increase efficiency with optimised reverse logistics.
Reverse logistics: an underestimated cost factor
Reverse logistics refers to the management of flows linked to product returns. Long perceived as a constraint, it now represents an essential strategic lever. According to KPMG, The costs associated with returns can represent around 10% of a company’s turnover.
Between transport costs, reconditioning, the destruction of non-recoverable products and administrative management, there are many sources of expenditure. However, a structured approach can turn this expense into an economic opportunity.
Gain a better understanding of your flows to control them more effectively
Before any optimisation, companies need to have a clear view of their returns flows. According to a study by Deloitte, only less than 30% of companies have complete visibility of their reverse logistics costs.
Without this precise mapping, it is impossible to target priorities or identify hidden losses. Analysis of volumes, causes of returns and the geographical areas concerned is an essential prerequisite.
Rationalising transport to reduce costs
Transport accounts for a significant proportion of the logistics costs associated with returns. Solutions exist to reduce this cost, such as pooling flows, using local platforms or optimising transport modes.
By grouping returned products in logistics hubs before redistribution, companies can significantly reduce their transport costs and their carbon footprint. This rationalisation both reduces costs and meets growing environmental expectations.
Making sorting easier and more efficient
Manual returns processing is slow, costly and error-prone. Technology, such as RFID scanning, optical recognition or specialist solutions such as Reversys, can simplify and speed up operations.
According to a study conducted by McKinsey, Well thought-out automation can reduce the operational costs associated with returns management by up to 20%. It also improves the traceability of returned products and facilitates their rapid reintegration into stock, repair or resale.
Reducing upstream returns thanks to the customer experience
Limiting returns avoids the associated processing costs. This means improving the customer experience: clearer product descriptions, appropriate sizing guides and responsive customer service.
According to Statista, Companies that invest in improving the user experience see an average 15% reduction in returns. Transparent but controlled returns policies also make it possible to limit abuse without damaging customer satisfaction.
Technologically equipped to go further: Reversys, a key partner
Reverse logistics is a complex chain that requires significant human, technical and logistical resources. For many companies, outsourcing this function is a way of boosting efficiency.
Specialist players such as Reversys propose a comprehensive, optimised returns management solution. Their approach combines :
- the organisation of return transport,
- helping to make sorting safer,
- real-time flow management (control and traceability),
Reversys can significantly reduce costs while improving the overall efficiency of the supply chain. The client company can concentrate on its core business while offering a seamless return experience to its consumers.
A function that has become strategic
Too long considered a necessary evil, reverse logistics is now emerging as a lever for economic and ecological performance.
Between flow analysis, automation, reduction of returns and outsourcing, there is plenty of room for manoeuvre to optimise this often underestimated chain.
Against a backdrop of pressure on costs and rising consumer expectations, investing in reverse logistics means investing in sustainable competitiveness. Partners like Reversys are supporting this logistical transformation and helping to turn returns into a strategic advantage rather than a loss.
Sources
- KPMG – Coût des retours : https://assets.kpmg.com/content/dam/kpmg/id/pdf/2017/08/id-future-proof-reverse-logistics-2august.pdf
- Étude Deloitte, “The supply chain visibility imperative”, 2022 https://www2.deloitte.com/us/en/insights/focus/industry-4-0/supply-chain-visibility.html
- McKinsey – Automatisation logistique : https://www.mckinsey.com/capabilities/operations/our-insights/beyond-automation-how-gen-ai-is-reshaping-supply-chains
our articles :
Why reverse logistics boosts customer satisfaction
Turn your returns into a loyalty lever with well-controlled reverse logistics.
Should reverse logistics be outsourced?
Optimising your product returns without losing control: finding the right balance.
Reverse Logistics:
A strategic lever for business performance
Our references
Our solution and expertise recognised by the leaders in e-commerce
Contact us
La société Smoosys traite vos données à caractère personnel dans le cadre de votre demande de contact. Le traitement a pour finalité, la gestion et le suivi de la relation avec les clients, prospects et fournisseurs. En savoir plus sur la gestion de vos données et vos droits.