Executive Briefings

High-Tech, Electronics Industries Begin to Find that Reverse Logistics Programs Can Save Money

In the high-tech and electronics industry, cutting costs is often difficult and nearly impossible to do without impacting product quality, time to market, or customer service. Unwilling to compromise on such critical business factors, many electronics companies are turning to less conventional means to drive cost savings and as a result, are often finding ways to not only reduce costs but also improve operations and overall business practices. Reverse logistics is one such area.

A recent white paper, "Recovering Lost Profits by Improving Reverse Logistics," written by Curtis Greve and Jerry Davis of Greve-Davis and commissioned by UPS, found that when effectively managed, reverse logistics can uncover hidden profits, reduce liability and improve customer satisfaction.

According to the Aberdeen Group Inc. , the average manufacturer in 2010 spent between 9 percent and 15 percent of total revenue on returns. Had they recognized the value of an improved reverse logistics process, those same manufacturers could have instead increased revenue up to 5 percent of total annual sales that year.

In fact, when viewed holistically - from the returns policy to product repairs to recycling and disposition - a strategically managed returns process can often produce profits rather than waste.

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Keywords: High-Tech/Electronics, Reverse Logistics, Third-Party Logistics, Logistics, "Recovering Lost Profits by Improving Reverse Logistics"study, reverse logistics management, returns process

A recent white paper, "Recovering Lost Profits by Improving Reverse Logistics," written by Curtis Greve and Jerry Davis of Greve-Davis and commissioned by UPS, found that when effectively managed, reverse logistics can uncover hidden profits, reduce liability and improve customer satisfaction.

According to the Aberdeen Group Inc. , the average manufacturer in 2010 spent between 9 percent and 15 percent of total revenue on returns. Had they recognized the value of an improved reverse logistics process, those same manufacturers could have instead increased revenue up to 5 percent of total annual sales that year.

In fact, when viewed holistically - from the returns policy to product repairs to recycling and disposition - a strategically managed returns process can often produce profits rather than waste.

Read Full Article


Keywords: High-Tech/Electronics, Reverse Logistics, Third-Party Logistics, Logistics, "Recovering Lost Profits by Improving Reverse Logistics"study, reverse logistics management, returns process