How E-Commerce Boom has Accelerated Importance of Reverse Logistics

Shopping ways are indeed changing! For many consumers spotting a grabby watch in a magazine, on a billboard, or somebody’s wrist can be an exciting feeling. But the very thought of driving to a store, finding parking space for your car, identifying the right size in stock, and waiting in a queue to pay can be a dampener. All these elements associated with in-store visits have prompted consumers to opt for easy-to-use mobile apps to meet their shopping needs. The surge in e-commerce over the years has brought into focus the importance of Reverse Logistics. Of course, Reverse Logistics has been part of retailing for many years now, but its significance has been felt more given the e-commerce boom.

The proliferation of digital technologies across industries has driven enhanced efficiencies and promises to transform the Reverse Logistics processes. After all, the increasing fastidiousness of consumers means that they would settle for nothing but hassle-free return policies that exude a positive customer experience. Service accuracy and timeliness matter a lot to consumers. According to a study, returns on e-commerce orders are three to four times more than brick-and-mortar purchases.

 

Efficient return management is the prime focus and it makes it imperative for organizations to put in place robust reverse logistics systems and processes.Organizations would do well to hop on to the digital technology bandwagon by leveraging various different software, platforms, and tools. This is because such digital technologies can enable a cost-effective Reverse Logistics process as well as a superior customer experience. For instance, Data Engineering can drive enhanced efficiencies across reverse logistics processes by unifying fragmented data sets from different stakeholders into a common data store that can be used for analysis. Similarly, Advanced Analytics and Artificial Intelligence have immense potential to transform reverse logistics by discovering insights and patterns to improve predictability. Another digital technology that can transform Reverse Logistics is Blockchain technology. Blockchain can transform there verse logistics process by facilitating a secure and transparent record of shipment and closely operates with several stakeholders across geographies. Augmented and Virtual Reality are also technologies that can trigger heightened efficiencies across the reverse logistics process by unlocking business value through remote support and virtual try before buy, thus enhancing CX and reducing returns.

Clearly, there are so much that digital technologies can offer in ensuring the Reverse Logistics process is a cost-effective one as well as deliver an augmented customer experience.