|EBN--Recently, high-tech manufacturers and service providers gathered at Interlog Summer 2011 in Los Angeles. This annual conference specifically focuses on the aftermarket and brings together after-sales service parts and reverse logistics professionals in high-tech industries to share their supply chain successes and challenges. |
Interlog provided the opportunity for companies to come together and discuss the ins and outs of reverse logistics, especially since this area can lead to competitive advantages in the marketplace. A 2010 Aberdeen report on reverse logistics found that best-in-class companies were recognizing $1.8 million in year-over-year savings as a result of improved velocity of returns. In addition, reverse logistics and aftermarket services consulting firm Greve-Davis found that consumers across the United States returned $200 billion worth of goods last year -- that’s more than the GDPs of 66 percent of the countries in the world.
And yet, despite the potential opportunities to improve the top and bottom lines, reverse logistics is a business area that is consistently overlooked by many companies. It is true that the returns and repair process is complicated, particularly for high-value products like computers or smartphones. However, the costs of failing to focus on this area go beyond lost savings opportunities: This supply chain breakdown also can impair the customer experience and damage brand reputation.