E-commerce has been an increasing industry for decades, but the pandemic is pacing its growth. The increased digital demand is imposing severe overproduction across many sectors of the economy, causing ongoing issues for retailers processing returns. In the industry, it’s known as reverse logistics, a process often dismissed by businesses. However, now returns and reverse logistics are expanding exponentially. It went so far that about 400 million square feet of older capacity will become available to handle explicit returns by 2025.

Global reverse logistics market is predicted to reach $604 billion in the next 5 years, according to the reports. There is an increase in planned reverse logistics, as sustainability becomes more vital to businesses. Many supply chains, especially in the apparel industries, are changing their business models from linear to circular by including up cycling as a necessary step in a supply chain.

Extract the Insights

Reverse logistics is a tricky issue for everyone involved. In particular, the returns experience directly affects customers’ view of your business and service. Look at historical data to help you recognize the dynamics of returns in your business and derive valuable insights. These insights will guide you as you optimize your reverse logistics process.

Use Modern Technology

It is impossible to see and effectively interpret supply chain information if we don’t have sufficient visibility of operations, shipments, and transactions. Visibility is an integral factor of successful supply chain management, regardless of whether it is a small retailer or a vast business. Integrating a TMS system will give you easy access to the information which is needed to optimize your supply chain.

Upgrade your Returns Process

Once you have a clear vision of particular issues in your reverse logistics process, you can figure out the next steps and start enforcing the new strategy. It can be better load planning, route optimization, expanding your customer support, or extending returns time slot, depending on the company. Only through data analytics, it is workable to handle reverse logistics at scale. Dexters help you combat your supply chain visibility challenges.