A Lesson In Reverse Logistics

May 2012 Integrated Solutions For Retailers

By Kevin Permenter, Aberdeen Group

As competitive and economic pressures continue to weigh heavily on the supply chain, more and more companies will turn to reverse logistics as a method of relief.

As the number of selling channels continues to grow, retail companies are turning to reverse logistics as a means of managing logistics cost and even as a place that can drive new revenue opportunities in terms of remarketing, service, refurbishments, etc. In fact, a recent Aberdeen research survey on warehouse management reveals that reverse logistics is on the rise — growing by nearly 10% overall between 2010 and 2011. Moreover, Best-in-Class (Top 20%) companies are 30% more likely to utilize reverse logistics as compared with all others. The data clearly points to the rise of reverse logistics as a key organizational component. While companies have begun to embrace the importance of reverse logistics, big challenges remain.