In a supply chain solution, products normally flow from the manufacturer to the customer. The management of flow of goods from the point of origin (manufacturer) to the point of consumption (customer) is forward logistics.

1. Quick Tips on Effective Returns Management
In a supply chain solution, products normally flow from the manufacturer to the customer. The management of flow of
goods from the point of origin (manufacturer) to the point of consumption (customer) is forward logistics. However,
instances may happen when these goods or products are sent backward due to factors such as damage, salvage, recalls,
restock, seasonal inventory, excess inventory and so on. Since the flow of products is backwards, it is known as reverse
logistics. Reverse logistics, thus, is “the process of planning, implementing, and controlling the efficient, cost effective
flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to
the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the
process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.
Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics."
Returned products are always considered as a drain on profitability and it is true to a certain extent. Returned goods
means additional costs in terms of transportation, inventory and warehousing. However, if managed properly these
additional costs can be turned into additional revenue for the company. Hence, here are some quick tips on effective
returns management.
 Ensure that only good quality raw materials, assemblies and components are used for manufacturing products.
Before delivering it to the retailers or the customers perform proper quality checks to doubly ensure that the
products have no defects of any kind.
 Do the right kind of packaging for the products. Choose from the different packaging options such as retail box,
RF sealing, clamshell packaging, blister pack, shrink wrap depending on the type of products being packed.
 When storing and warehousing products make sure that it is done safely and securely. Proper measures must be
taken to protect the products from pests, insects, animals, rain and moisture.
 Choose storing conditions that contribute to the longevity of the products. If the products are perishable, it
should be kept under refrigeration. And if the products react to extreme heat or cold, then the temperature of
the storehouse or warehouse should be set to suitable degrees.
 Avoid obsolescence and spoilage by not storing large quantities of finished quantities in the warehouses.
Manufacture goods based on customer demand.
 Ensure customer satisfaction by delivering the right order that too on time.
Following returns management best practices can go a long way in ensuring profitability from returned goods.
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