ESSAY: Returns Processing

Returns processing, or reverse logistics as it has become known, involves the handling of product returns, transit packaging and surplus items. In 250-300 words describe the processes involved with returns (reverse logistics).

ANSWER

Reverse logistics refer to the activities involved throughout the movement of products to the point of origin to recapture value or for suitable disposal. Refurbishment and remanufacturing practices may also be included in this definition (Antonyová et al., 2016). The two primary components of reverse logistics are returns management and remanufacturing or refurbishing. 

Returns’ management guarantees optimally efficient returns’ processing through avoidance and gatekeeping. The former entails screening products before they are allowed into the reverse flow. Some of the most effective avoidance techniques entail user friendliness, quality control and tactical promotional programs (Belvedere et al., 2017). This process helps in minimizing the volume of returns. Gatekeeping, on the other hand, include decisions made to manage the volume of products allowed into the reverse flow. The process is quite essential in cost management as it eradicates the overheads involved in the return of products that should not have been returned in the first place. A successful…

Moreover, a substantial amount of products is returned to supplier due to inaccuracies or damages to the commodity delivered to the recipient. The damage may have taken place at manufacturer’s warehouse without their knowledge, or it might have occurred along the supply chain. Refurbishing and remanufacturing deal with items on this track of return processing. The damaged products may require basic repair work before re-integration into the distribution chain for re-sale (Morgan et al., 2018). At times, the manufacturer may be required to use new or reused components to rebuild the item as per the original specifications. Refurbishing entails enhancing an outdated commodity to mee…