Can the return/repair cycle of products remain as an extension of the process and infrastructure devoted to product creation, or should manufacturers follow those who have moved beyond a “fix/respond” mode to a “value added” servicing model?
An opportunity to generate additional revenue, differentiate market position, and support original product demand is sitting right in front of many companies. It is estimated that reverse logistics costs account for almost one percent of the total United States GDP. Therefore, reverse logistics is rapidly becoming an integral component of retailers’ and manufacturers’ profitability and competitive position.
Product returns are the most common aspect of reverse logistics. Yet, most companies do not handle returns well not because they are part of their core competencies.