How to Market Reverse Logistics - 7 Steps To Success
The RLMS market is a largely undefined and untapped entity. Many industries see reverse logistics as un-glamorous and non-high tech. They therefore discount their inherent need for RLMS. In short, companies need to first understand what RLMS before they can know they need it. Therefore, potential customers have a need to understand the complexities and benefits of RLMS. Many industries are unaware of the different modalities and functions of RLMS and how dramatically RLMS can improve their business. Customer awareness can be raised through concise and simple definitions and models of RLMS. Factors that should shape this description of RLMS are:
1) Cost reduction- Explain both the money lost from poor reverse logistic practices and the revenue possible through proper reverse logistic practices controlled by RLMS.
2) Administration consolidation-Business’s that do practice RL are often doing so through heavy administrative allocation. Additionally, many companies are hesitant to enact RL practices because of concern of needing to adopt a large and costly administration. These companies need to understand that RLMS makes the majority of this infrastructure unnecessary by streamlining and automating critical functions.
3) Protected Income-Companies are often unaware of how much income is unprotected (i.e., at risk) because of seemingly uncontrollable factors that only come into effect after the product is on the market, such as returns and recalls. Companies need to understand that RLMS brings a large measure of control into their hands.
4) Liability protection-Many companies in diverse industries are susceptible and exposed to legal and regulatory action because from environmental and governmental regulations. RLMS allows companies to be up-to-date on regulations and also performs auditing functions that protect companies from investigations.
5) Resource reservation-Inventory, transportation assets, employee allocation, and other resources are wasted on improper RL practices. RLMS conserves and manages a company’s resources.
6) Time saving-Poor RL processes take too much time resulting in poor customer satisfaction and wasted money. RLMS streamlines and optimizes RL process time.
7) Customer Experience Improvement – OEMs and retailers can dramatically improve customer satisfaction through proper RLMS practices. Refined business practices, such as issuing proper credit for returns, fast turnaround on sending products back to customers, balanced books, and issuing replacements are some crucial and improved processes that are automated by RLMS.
These seven benefits of RLMS are crucial points that impact the deployment of new software solutions. Additionally, the size of the after-market for refurbished, returned, and other dimensions of the post-life of a product needs to be defined in able to establish the exact scope of RLMS automation required.