Uprising Logistics Strategy: Reverse Logistics
Online shopping has become an essential part of people’s shopping habit as the COVID-19 lingers longer than anticipated. What e-commerce driven companies have established for the operation to be sustainable and keep up the consumers’ soaring commands? The answer is reverse logistics. This is introduced as a flexible refund system by all the big retail stores, a common virtuousness from long ago and continuously offered to consumers. When the system applies to online shopping, it is considered the reverse logistics.
In general term, reverse logistics is describing when the product reach to the end user and back to the merchandiser. Many reasons are involved but those are not the factors here. The logistics process of this operation is considered reverse logistics, and what are the benefits for this process to the merchandiser? It sounds like the consumers are abusing the system, but this actually makes the inventory sustainable and manageable when a crisis is in front.
Considering the beginning stage of the crisis when everyone is buying not just regularly but excessively. It empties out the inventory quicker than normal. There is nothing to sell and you have an almost-empty warehouse. The stock level may not recover back to normal operation to keep up the demands in a short period of time. The reverse logistics from the consumers can be the source to restock the inventory and keep the operation running on a manageable level.
Also, reverse logistics is common on the operation of electronic products when the company can offer refurbished or open-boxed items at a lower price tag. It is a healthy recycling operation to keep the unnecessaries out of landfill.