Reverse Logistics: Money Tree or Money Pit?
by Gail Dutton
July 4, 2010

Reverse logistics—the process of returning, recovering, testing, repairing, restocking, reshipping and disposing of products—doesn’t have to be a money pit. Savvy companies are using it to contain costs, boost revenue and buttress customer loyalty.

A recent study by the Aberdeen Group puts numbers to those assertions. Specifically, in the report “Reverse Logistics: Driving Improved Returns directly to the Bottom Line,” the Aberdeen Groups says that companies with best-in-class reverse logistics processes slashed the time it took to return parts from nearly 17 days to just over 4 days. The cost of repairs dropped 10 percent last year, compared to only 4 percent decreases for everyone else. Customer satisfaction was high at 93 percent, versus 81 percent for all others.