RETURNS PROCESSING AND REFURBISHMENT : A CASE STUDY ON E-COMMERCE REVERSE LOGISTICS

Abstract

Growth of online shopping and the proliferation of last mile delivery options naturally result in more returns, placing increased pressure on reverse logistics operations which now need to be managed at scale. While product returns and reverse logistics can be predictable in their frequency over time, they are difficult to plan and optimize on a daily basis. They also create complexity as they require coordination with many other functional areas of a company, such as driver routing, warehouse operations and inventory management. This coordination is crucial in order to maintain operational efficiency, chain of custody and deliver a satisfying, timely return experience for loyal customers. The bottom line is that reverse logistics have become one more piece of the ever-intensifying battle to remain competitive in the online landscape. Since they provide a great opportunity to build trust and confidence with customers, businesses are increasingly realizing the value of having an efficient returns process for internal reasons (faster return processing means faster re sales), as well as external ones (customers who are waiting for a rapid refund). Reverse logistics are integral to creating a positive customer experience through reliable processes that facilitate a cost-efficient way to quickly and accurately retrieve and return inventory back into their network. This study focuses on how E Commerce organization - Amazon can still extract profits and increase further salability yield from customer returns units by simple audit mechanism. These products can further be available for sales as fresh products thus reducing losses happening due to Customer returns.