6 Questions to ask to take control of reverse logistics

Many companies claim they truly understand their customer’s buying Journey and that they are totally committed to meeting all of their customer’s desires.  This commitment however is totally challenged in many ways when it comes to Reverse Logistics. So, what are the challenges businesses will encounter as it relates to the growing need to control a company’s reverse logistics operations?

First and foremost is the fact that very often senior management is totally unaware of the following elements of the company’s reverse logistics operations:

• The actual size of the reverse logistics operation
• The total cost of reverse logistics operations
• The impact of reverse logistics operations on the corporate bottom line
• The impact reverse logistics has on customer service 

The truth is all companies are chasing a constantly moving target in their attempt to wrap their arms around reverse logistics operations.  It’s hard to nail down a firm plan to control these operations and costs when the goal posts are continually moving. Many company’s reverse logistics operations are often disjointed and often in chaos.

So we strongly recommend that the following 6 questions not only be asked at the corporate level, but that firm processes are implemented in an effort to finally take full control of all areas of a company’s reverse logistics operation.  

1. Who really owns the reverse logistics operation; is it the right person or group to achieve the best results for the company?
2. Who actually has full P & L responsibility for reverse logistics? 
3. How are finances reported, and what is actually being reported in those financials?
4. What IS the true customer experience when it comes to reverse logistics operations? 
5.  How is training handled?  Does the company even have training programs in place for reverse logistics operations? 
6. Does the company really have controls in place to continually improve the reverse logistics processes and to continually monitor and control all costs related to the reverse logistics operations?

So, what’s your company doing to control operations and costs in this very critical area of business that could become a death sentence if not properly managed; we’d love to hear from you.