Reverse Logistic Management Software - Part 1
In the next series of postings, we’d like to delve into Reverse Logistic Management Software (RLMS). This first post is an overall introduction to RLMS, while the next will focus on specific functionality. Feel free to leave any questions in the comment section.
The current state of the Reverse Logistic Management Software (RLMS) should be categorized as an industry that is set for rapid growth while solidifying its viability by validating its approach to Reverse Logistic (RL) operations through automation. Our current analysis of the Reverse Logistics Management Software state-of- the-art finds software applications to be flexible and durable solutions that can operate as stand alone system or as part of an enterprise package.
Evidence that companies are looking for RLMS to be integrated into other systems was evident when the highest percentage of our respondents chose that to be the most important factor in selecting a RLMS vendor. Additionally, a very large number of respondents in an extensive survey we under took reported that they used Enterprise Resource Planning (ERP) to manage their company’s RL.
Overall, RLMS’s inerrant flexibility permits customization to meet precise requirements and gives a distinctive amount of control to the client to meet their specific needs. We perceive RLMS functionality as analogous to a family where the different applications are like the individual family members that compose this nucleus. Just like family members, these applications share the same “genes,” or in our context, feature functionality that makes them very similar.
At the same time, it is the variance or combination of these functions that make each application unique and effective. This commonality shapes an almost predefined internal structure of RLMS that facilitates the interlinking or synchronization of various applications. This framework allows the optimization of the service chain.
We found that almost universally, all reverse logistics functions benefit from “real-time” visibility of selective logistical information. This is a pervasive feature that enables and maximizes other functions. Benefits such as inventory management, forecasting, recall auditing, return management, and others are contingent on having an accurate and current picture of where a given asset is on the supply chain.
We see a definite trend of RLMS functions becoming more expansive and more encompassing. However, our research showed that there remain many functions, such as Liquidation Management, that need to be created and incorporated into current offerings or offered as a standalone application.