Why SMEs Are Focusing More On Their Reverse Logistics Responsibilities

reverse logistics proces
reverse logistics proces

Small to medium enterprises (SMEs) have to make the most of the resources that are available. Once waste and human error is factored into the equation, managers are stretched for answers and have to begin making concessions.

That is why a domain like reverse logistics is so important for these businesses, allowing them to invest in a system that returns and repairs stock back through the supply chain.

The manufacturing, distribution and selling of products and services is the easy part, but it takes a level of acumen and adaptability to respond to the other component of an organisation.

We will discuss the benefits for small and medium entities to focus on this responsibility for the short and long-term, examining the potential for outsourced assistance and consultation from expert operators in the field.

The Financial Factor

Ultimately the management of reverse logistics processes comes down to the bottom line. When more stock has to be sent back through the supply chain once more, that is money that is lost for the brand. This is before any repairs or replacements are sourced, creating a cycle of monetary loss that is difficult to recover from if the system is repeated. By focusing on this domain and bringing in outside assistance to help implement a working framework, revenue will be protected and there will be more cash saved over the intervening period to invest in other departments.

Customer Retention

SMEs will want to focus on this domain more when it comes to the customer satisfaction levels that are tied to the exercise. If they have to send items back or deal with warranty provisions, repairs and replacements, there is a greater likelihood that those communities would rather do business with a competitor. Attracting outside interest is phase one, but holding onto those clients to build brand loyalty is just as valuable.

Instituting Accountability

One of the areas in which reverse logistics attention helps with a business will be the accountability of staff members and management. It is not enough to know what has gone wrong but who is actually responsible for the error or the miscalculation. When SMEs have a greater grasp on this component of the operation, they are able to provide a remedy and long-term solution for a permanent fix.

Leveraging Quality Distribution Networks

worker in a warehouse

When the data and analysis has been assessed for reverse logistics purposes, outlets can start to see which distribution networks are in their best interests to leverage. It can be couriers and supplier agreements to material providers and commercial affiliates. Rather than being tied to those brands due to convenience or personal relationships, SMEs can dispassionately assess if there are better alternatives out there in the marketplace.

Implementing Updated Technology Frameworks

Half of the battle with reverse logistics operations is being able to see the data up close and in real-time. Without this level of reporting, it is hard to ascertain what has been lost and what areas of investment are required to make these improvements for an SME. By calling upon industry experts and placing a microscope on this department, businesses will be able to implement updated modes of software and technology to acquire this information.

Reducing Waste & Carbon Footprint

Sending materials back through the supply chain only adds to the waste that is generated by an SME. An investment in reverse logistics processes helps to keep that responsibility under control, reducing the number of materials that are produced and those that are discarded due to functional faults. It is a small detail involved in the reverse logistics cycle, but it matters for those brands that want to be saving money and doing their part for the community.