As readers know, AMS Fulfillment is a full-service third-party logistics company, also referred to as a 3PL. We do it all… warehousing, pick and pack fulfillment, eCommerce fulfillment, B2B/wholesale fulfillment, shipping, kitting and value-added services, warehouse management, inventory management, customer service, and returns management. What about Reverse Logistics?
The term, ‘Reverse Logistics’, actually refers to Returns Management. Returning a product to the seller or the seller’s fulfillment service wherein the customer receives a replacement or a refund. It’s like the river flows from consumer to manufacturer (upstream) rather than from the manufacturer to the consumer (downstream).
Here is how Google describes it: “Reverse logistics is the management of the supply chain in reverse, handling the movement of goods from the end-user back to the seller, manufacturer, or distributor. It involves processing returns, repairs, recycling, and refurbishing to recover value, ensure proper disposal, and improve customer satisfaction.”
Our Team of Associates
Google got it right describing what is involved. “Processing returns” brings about reverse logistics. That’s one of the many services we provide at AMS. We very much appreciate our Returns Management team. They are wise and thorough, and highly trained. It takes skill to make decisions as to the handling of the product, and our clients deserve our best. Let’s look at what they are required to do.
There are several stages of decision-making when a product has been returned. A member of our Team will decide … where does this go? The first question leads to many more decisions. Reverse logistics actually goes beyond just managing returns. Our team member will be well versed in the Client’s wishes, and will make the decisions. Here’s an explanation of the decisions involved:
1) Returns Management refers to the handling of customer returns, exchanges, and damaged items. 2) Repairs and refurbishing take place when possible, restoring products to functional, saleable condition. 3) Recycling and disposal take place when the materials cannot be reused. 4) Recalls refers to managing the return of defective products. 5) End-of-life management is the handling of products that have reached the end of their useful life.
Benefits of Efficient Returns
At AMS we understand the benefits of having a wise and well-trained team: 1) Efficiently managing returns reduces waste and lowers expenses, leading to cost reduction. 2) Top notch returns management supports the circular economy by recycling, repairing, or reusing products, which reduces environmental impact. 3) A smooth return process enhances customer satisfaction and trust. 4) Properly handling returns allows our clients to recoup value from returned items through restocking, repairing, or reselling in secondary markets. This is foundational to our values and beliefs as a B Corp certified organization.
What Truly is Reverse Logistics?
It seems that Reverse Logistics is Returns Management with a plus. The plus is the AMS associates who make it work. Their aim is to quickly get the inventory back onto the shelf as shippable finished goods (for those items that can be refurbished), and to do their best to minimize the costs associated with returns handling.
There is uncertainty and complexity involved in processing returns, and for that reason AMS carefully consults with the client and gives the team of associates thorough training. Processing returns requires careful handling and inspection of items to determine the best destination.
AMS collaborates with the client to create effective returns management solutions for each client, often integrating with their desired returns fulfillment platform, and perform the work to get the return registered in the system, data communicated back to the client, and the product back on the shelf and ready to sell. If the product is damaged and cannot be resold, we set it aside for donation, alternate sales channels, recycling, or destruction in a sustainable fashion.
Let’s conclude with a very big Thank You to our Returns Management/Reverse Logistics Team for their dedication and expertise. Returns are an unfortunate reality for many of our clients. At AMS, we help to streamline this negative work through employing a great crew, automated systems, and client-specific processes.
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Please feel free to visit amsfulfillment.com and learn more about us. We’ve been doing eCommerce fulfillment for more than twenty years and we are a highly respected third-party fulfillment service (3PL) with many satisfied and successful clients.