Reverse logistics involves the process of moving products from consumers back to manufacturers for reuse or disposal. It includes managing returned and surplus equipment. Reverse logistics has the potential for cost optimization as it can reduce returns processing costs by 25%, increase productivity by 10%, and increase asset recovery and customer satisfaction. However, traditional logistics providers focus more on forward logistics than complex reverse logistics. Proper reverse logistics encompasses integrated supply chain management and can improve a company's profitability and compliance with e-waste regulations.

1. Reverse Logistics.

2. Reverse logistics is the process of moving
a product from the consumer—the typical
final destination —to the manufacturer,
the point of origin, for re use or disposal.
The process includes the management
and the sale of surplus as well as returned
equipment and machines from the hardware
leasing business.

3. Four Questions.
• What % of products sold by companies are
returned by customers?...4to5%
• What is the cost to process a return?..multiple
times that of forward movements.
• What is the % cost companies manage to
recover? ..lower than 50%
• Are manufacturers complying with govt e-waste
regulations?...Total negligence.
• Every one is so focused on forward logistics no
one understands the potential in managing RL
well.

4. • Under normal circumstances when, say, in case a new
laptop turns out to be defective, the consumer would
return it to the retailer, who returns it to the distributor,
who in turn gives it back to the manufacturer.
• Causing consumer dissatisfaction, cash lockdown for the
retailer, and a rise in the distributor’s inventory.
• Reverse logistics company steps in to reduce the time
and cost involved in the backward chain.
• India- Aftermarket (market that supplies accessories,
spare parts, second-hand equipment, and other goods
and services used in the repair and maintenance of
returned products.)returns that form part of the reverse
logistics industry are estimated at $10-15 billion.
• Reverse logistics has the potential to become a key route
to cost optimization as the Indian economy grows.
• Average spending on reverse logistics is about 10-15% for
garment firms and about 20% for furniture companies.

5. • Power of reverse logistics is in data and so its
solution’s backbone is its proprietary
technology platform that provides end-to-end
data visibility of the returned products from
point of origin to its final disposition.

6. Value Propositions in Reverse
Logistics.

7. • Majority of the companies do not have a control on
the total cost of reverse logistics.
Reducing returns management costs leading to
increased margins
• These costs include repeated customer calls relating to
returns, people cost, warehouse space, transportation
cost, cost of capital locked in inventory that is
depreciating daily, low asset recovery, fraud, etc.
• Reducing cost and making them predictable while
improving process efficiencies makes a significant
financial impact for any company.

8. Improving customer return experience leading to
increased sales.
• More than 50% of consumers surveyed by RLC
indicated that bad return experience will
negatively impact their decision to re-purchase
from same retailer/manufacturer.
• Given a viable option they would not purchase if
they have a bad return experience.
• Consumers in India are getting more demanding
and in these competitive times when retention
and growth are keys to success in India,
companies cannot afford bad customer
experience when it comes to returns.

9. Generating higher asset recovery rates.
• Research has indicated that electronic goods will lose
close to 30% of their value within 4 months.
• To maximize asset recovery key is to put the products in
the market at the earliest.
• Core competency in reverse logistics can – through
channels of disposition , proactively strive to dispose off
returned, refurbished, overstocked, and surplus products
in the fastest possible time without cannibalizing new
product sales channels.
Avoiding channel conflict resulting in new customers.
• One of the biggest value proposition RL brings to its
customers is in form of an organized trusted partner who
will ensure that sale of returned, refurbished,
overstocked, surplus products are marketed as such and
do not cannibalize your new product sales channels.

10. • Network of partners is under survellience to ensure
that all products are never sold as new.
Providing business intelligence services for better
decision making.
• RL’s proprietary technology captures data that can
be translated into valuable trends, and insights for
customers allowing them to identify product defects,
customer return patterns, tweak expensive
marketing campaigns, and improve supply chain
bottlenecks.
• This data can be harnessed to improve customers
bottom-line as well as top line and make company
more competitive and efficient.

11. Providing a trusted, organized partner to manage
electronic waste.
• The day is not far away when India will also
implement strict regulations around electronic waste
management.
• Today most of electronic waste is being "disposed
off" through unorganized channels that pay little
attention to the damage that they are doing to our
environment.
• This can be a PR and liability issue for large
companies, something they cannot afford.
• In RL customers can have a trusted partner who will
ensure all electronic waste is being disposed off in
environmentally friendly way within the strict
guidelines of government regulations.

12. • Reverse logistics is complex. Standard logistics and courier
companies focus more on forward due to volume and
decreased complexity.
• In layman's terms, reverse logistics is anything happening
to a product after the point of sale.
• Traditional logistics providers who only ship return
products back to the source are just scratching the surface
of what is real reverse logistics.
• Reverse logistics done properly can decrease returns
processing costs by 25%, increase productivity by at least
10%, increase asset realization by 2x, increase customer
satisfaction by 100%, and increase profitability by 2%-5%
apart from being compliant with e-waste regulations.
• Proper reverse logistics (call it reverse supply chain - RSC)
solution encompasses integrated SCM, logistics,
warehousing, repair, customer contact, IT, field service, e-
waste, retail, e-commerce, branding, marketing, etc.

13. EPR
Indian logistics industry is not ready for the Extended
Producer Responsibility (EPR) regime.
• It will evolve. If enforcement is there.
• Size Of RL market --
• RSC has two elements - processing cost (moving
product back, warehousing, repair, refurbish, etc.), and
then asset realization. In Indian context total cost to
process ALL returns (assuming 4% return rate) is about
$4-$6 billion. The value of ALL products returned in
India is worth of $12 billion.

14. Other regular business needs- Refilling-
Collection of
1.Soft drink bottles.
2.LPG cylinders.
3.Beer bottles.
4.Pallets.
5.Containers ( imported cargos).
Product recall as an opportunity to increase
customer satisfaction:- Dairy products, bakery
products( Monginis), Pharmaceuticals.

15. • Design a case for reverse logistics of:-
1.Big bazar schemes in which they buy
everything from Old broken commodes , to
old tyres, newspaper raddi , old plastic
articles, even old footwear.