keyboard_arrow_up

Reverse logistics, a growing challenge for retailers

Reverse logistics, a growing challenge for retailers

Reverse logistics has gone from being an operational issue to an increasingly strategic component of the retail supply chain. In the age of e-commerce, where immediacy is an imperative, effectively managing product returns is critical to maintaining and enhancing customer loyalty, optimising costs and maximising sustainability. 

This paradigm shift is forcing companies to re-evaluate the management of their operations and rely on specialised logistics operators to provide innovative solutions that turn reverse logistics into a competitive advantage for their business.

What is driving the rise of reverse logistics?

La expansión del comercio electrónico ha sido el principal catalizador para el rápido ascenso de la logística inversa. Según datos de Morgan Stanley, el canal online pasó de representar el 15% de las ventas minoristas en 2019 a un 21% en 2021. Actualmente, se estima que supone el 22% del mercado retail y las previsiones apuntan a que alcanzará el 27% en 2026.

Este incremento del e-commerce ha disparado de forma proporcional el volumen de actividad de la logística inversa, ya que las devoluciones se han convertido en una parte más de la experiencia de compra online de los clientes. Un informe elaborado por Data Bridge señala que el mercado de la logística inversa está creciendo a un ritmo anual del 5,3% y espera que alcance un valor de 900.000 millones de euros en 2029.

What trends will prevail in reverse logistics?

1. Automation in returns management 
Automation is becoming an essential component of managing reverse logistics. Many retailers still rely on manual and paper-based processes, which are more inefficient and costly than digitised ones, so it is anticipated that the adoption of technology systems that streamline routine reverse logistics procedures more effectively will become more prevalent.

2. A focus on remanufacturing and reselling 
Retailers and manufacturers are increasingly aware that the policy of wasting the majority of products that have been returned cannot be maintained, so trying to repair, refurbish and resell this merchandise, with the aim of recovering the economic value, has become a priority.

3. More environmental commitment 
Reducing the carbon footprint in reverse logistics does not depend exclusively on the use of less polluting vehicles in last mile transport. In this sense, an increasingly global vision is being adopted, with more ambitious policies for recycling materials or minimising the environmental impact at the end of their life cycle.  

4. More control over returns fraud
Companies are implementing more rigorous policies and procedures to combat fraudulent returns. Verification of product authenticity and compliance with return policies, or the implementation of tracking and authentication systems to prevent such abuses will grow in the coming years.

5. Rely on specialised logistics partners
The complexity of reverse logistics is leading companies to rely on logistics service providers specialised in retail and with specific solutions to manage returns. In this sense, many medium-sized retailers, who until now have handled this operation internally, will decide to outsource part or all of their reverse logistics operations to specialised operators.

How do we manage reverse logistics at Rhenus?

We see reverse logistics as an opportunity for retail companies to build customer loyalty. We are aware of the changes in consumer buying patterns, which demand that returns are handled with the same speed and efficiency with which original orders are handled.

To this end, we provide companies with global support and solutions tailored to the specific needs of each company, which we define with five main principles:

1. We integrate reverse logistics into integrated logistics
We are a global logistics operator with the capacity to manage the entire supply chain and with specific solutions for managing returns. These services form part of a logistical vision in all its complexity, in which we take advantage of all the synergies and our transport and storage capacities to provide the most appropriate response to each need.

2. We define a reverse logistics strategy tailored to each company
We design a plan adapted to the characteristics of each economic sector and tailored to each business to manage returns in the most efficient way, from collection to damage assessment. We focus on accelerating the processing and reincorporation of goods, optimising resale opportunities and the second life of products.

3. We bring technological innovation to your logistics
We provide you with advanced technologies to improve returns management. We are well aware of the competitive advantages that these tools bring in terms of tracking goods, streamlining processes and improving the overall customer experience.

4. Investing in more sustainable practices
We prioritise sustainability, driving greener practices at every stage of the logistics chain and globally seeking the best initiatives to minimise the impact of last mile transport and reverse logistics. 

5. We are a committed customer partner
We work with efficient solutions designed to improve the profitability of different businesses, adapting to the growing expectations of the consumer and advising the customer to keep the company in constant evolution. We are a reliable partner because we integrate ourselves into our clients' businesses to share their objectives. 

Do you want to contact a Rhenus professional expert in reverse logistics?