The hidden value in Reverse Logistics

Point of view

In today’s business context, companies can not longer afford to neglect reverse logistics as an integral part of their supply chain strategy and operations. A recent survey of Deloitte & Arvato shows that reverse logistics represents a significant part of a company’s cost structure, ranging from 0.1 to 1% of the sales value of a product and averaging 0.5%, leading to an annual cost in the U.S. of 200 billion USD. Compared to the cost of goods sold, an average of 7 to 10% is directly or indirectly attributable to reverse logistics.

The significance of the reverse supply chain is growing! Exponentially increasing return volumes due to more complex devices and changing shopping patterns (e.g. online sales), pressure on process efficiency to reduce costs per incident, the impact of environment-consciousness on brand perception and reputation are just a couple of challenges that companies need to deal with in today’s business reality. This document provides a first insight in how you can unleash the full hidden potential within your reverse logistics flow.

The hidden value in Reverse Logistics
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