Have you felt that overlooking reverse logistics puts your organization behind others who master the discipline? If yes, it is not you alone, as there are many organizations yet to decide that reverse logistic is a strategic concern. However, it involves adopting the most efficient way of dealing with the process.
Reverse logistics is the practice of efficient transportation of finished products from their destinations back to their origin to capture residual value (or salvage value).
Manufacturers want to retrieve defective products efficiently from their valuable customers, and IT solutions are a definitive boost in that context. By improving the process, manufacturers can save costs and speed up their service to ultimately promote a positive brand image. It also helps the marketing aspect of business significantly.
How large organizations tackle typical challenges
To pursue the fresh stock, companies have started focusing on clearing old inventory. However, to do so, there are several hindrances for enterprises. Due to huge sales volumes and extensive customer bases, organizations face the problem of many unidentified and unauthorized returns. Warranty management software establishes total control over such processes by maintaining unique product identification numbers and tracking mechanisms.
As all the claims are managed automatically through software, there is no scope for unauthorized system inventory movement without a laid down protocol being followed. Most of the time, organizations are unable to write off a significant amount of returned inventory held in their warehouses. The claim processing rate is far lower than the inward-inventory movement rate, which results from a lack of return agreements with retailers.
The latest warranty software are a step ahead in this aspect, as they manage the return policies and protocols laid down right from the beginning of product life cycle.
Software capabilities
Warranty systems come with cross-functional integration capacity and minimize the claim-processing time, helping improve customer confidence. With high-level integration, the collection of goods from customers can be managed automatically. The software can be synchronized with third-party logistics providers (3PLs). As soon as a claim is processed, an automated intimation is sent to initiate the collection sequence. After the inventory arrives at the organization premises, it is accounted for automatically against a goods receipt note (GRN), leaving no gap for fraudulent claims.
With traceability to this extent, organizations can extract maximum value from salvage of the returned goods in parallel to a hassle-free operation. Companies can also re-engineer and reintroduce the product back to the market and derive profit.
Meet Tavant warranty experts at Booth #3 at 13th Annual Warranty Chain Management Conference (WCM) on Mar 7th-9th, 2017 in Tuscon, AZ
