Why Reverse Logistics Are Also Important

Some apparel companies spend so much time trying to streamline their supply chains that they forget the importance of reverse logistics. Whether your business sells clothing online or in a brick-and-mortar store, you must pay attention to reverse logistics. It is a crucial part of the supply chain that you should not overlook.

The High Cost of Returns

Many companies have built their reputations on lenient return policies, but those policies have damaging effects, especially when they include the cost of shipping.

According to some estimates, consumers return a third of the items they buy online. Such a high level of returns significantly increases processing costs. If nothing else, those returns force companies to hire more employees to handle the heavy volume.

Cutting the Number of Returns

Cutting the number of returns is essential to the future of e-commerce success. According to ASOS, a European retailer focused on women's clothing, lowering the number of returns by just 1 percent could save it $16 million .

With so much money on the line, retailers have tried several strategies to reduce the number of returns they process. Most customers return apparel because they don't like the way their clothes fit. Knowing this, many online retailers have started using technology to adjust their sizes.

Ideally, offering sizes that are more accurate (and meeting the sizing expectations of shoppers) should lower the number of returns and save companies a lot of money.

Of course, it also costs money for companies to develop new technology. It may pay off for them in the long run, but there is always an element of risk when trying something new.

Getting Third-Party Returns Processing Services

Instead of spending a lot of money on attempts that may not actually lower returns, companies can choose third-party returns processing services that offer known results.

The Apparel Logistics Group gives its clients returns processing services that have been shown to:

  • Improve customer satisfaction
  • Lower costs
  • Enhance oversight

Reverse logistics can help you spot problems in your supply chain, but that doesn't mean you have the power to make effective changes.

With The Apparel Logistics Group, you don't need to worry about how you will prevent returns. The company uses advanced technology to manage your inventory and track returns. Instead of worrying about your returns, you can leave it to a company that has already proven its effectiveness in this area.

Reverse logistics is becoming an increasingly important part of managing retail supply chains. Unfortunately, many companies don't have the tools they need to address issues raised by reverse logistics adequately. You might have some information about customer returns, but that doesn't automatically mean you have the power to lower the number and cost of those returns.

Request a free consultation from The Apparel Logistics Group to learn more about how the company's services can keep your customers happy while streaming every aspect of your supply chain. You will likely find that these services will finally give you a chance to tackle the problems that hurt so many apparel retailers.

Posted: 12/16/2015 10:59:22 AM by Global Administrator | with 0 comments

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