Reverse Supply Chains: Best Practices for Better Asset Recovery
Recovering your assets is¬†a difficult task no matter what your occupation with reverse supply chains in the marketplace. With market needs constantly changing and younger companies entering the market, a company must have a plan for survival when recovering assets or keeping loss numbers low. As businesses often have a surplus of goods to dispose of or recover, such as core returns, we’ve compiled some excellent tips for your company¬†so¬†the¬†process¬†of handling¬†goods not only stretches further… but¬†enhances¬†your chain value as well.
Effective¬†Reverse Supply Chains
With creating the product being only a small portion of the business, many businesses invest time into making¬†methods for¬†an effective supply chain. Although benefits are received when new technology is added to a¬†product, the surplus of earlier product remains stagnant or left in storage… costing a company valuable space and loss of funds. This excess of inventory can often pose as a problem when companies already have a long list of issues to tackle to remain relevant in the market. However, technology can be used to turn¬†what¬†seemed as losses into standby sources of revenue.
As most warehouse strategies are formed to combat issues of product shortage or provide important accounting data regarding¬†a product, technology has been created to help reverse supply chains and drive larger recovery by serving the business needs for selling surplus. Such tools, like the Cerasis Reverse Logistics product, which is newly released, allow an employee to procure and dispose of surplus product from more than one location. This tool holds a small amount of your company’s data and lets the project manager enter new returns, track returns, approve return, and authorize payment of approved returns as well as see Proof of Delivery receipts for returns. Further, this allows for the technology to check carriers sites every 2 hours for these documents for continual updates and visibility. This allows for the following benefits:
- Impact the bottom line: no wasted time on creating a process or even a bill of lading. All of it is created within the technology
- Consolidation begets improved customer service:¬†consolidate multiple returns into one shipment further reducing costs & handling customer requests swiftly
- More Control: All documents are stored and accessible at all times, giving you the ability to communicate to customers swiftly
Monitoring Your Success
Looking before you leap cannot¬†be easily said¬†if you’re working without a reverse supply chain measurement established beforehand. Efficient processes¬†are a major part in keeping an eye on reverse supply chains, as keeping track of Key Performance Indicators (or KPI for short) can only help a company predict of what’s to come in terms of sales.
With proper descriptions of products¬†and a world-class management¬†system, your employees can easily track and monitor surplus assets. Pulling data from KPI helps¬†your¬†reverse supply chain system¬†run fast and effectively when embarking on the disposition process. This way selling older product isn’t such a problem when marketing new product, as marketing older surpluses online can keep your business moving – and making money – without missing a step. With a company relying on old methods of disposal, it can create significant blows to your business profits… which are simply due to old marketing techniques and not thinking ahead. An excellent tip for selling surplus online is by relying on one provider as¬†it creates a point of contact for a client’s need of surplus and creates a report for your KPI regarding older goods.
4 Core Benefits of Deploying a Reverse Supply Chains Process
- Improved transparency of the status of the returned item. Create a process that allows users to calculate the number of items to be utilized wholly or in part. The company can save in manufacturing parts by knowing which parts can be harvested and reused in the future.
- Identify waste streams and inefficiencies. As reverse logistics is a part of the entire lifecycle, remediating areas that get bogged down such as repairs and refurbishing help to get usable products back to end users or to new consumers at a reasonable cost.
- Consumers are able to be kept current on the status of their product in the pipeline. Not every product needs to be replaced and end users need an idea of the time it will take to get their product fixed. Transparent practices create clear modes of communication for consumers.
- Better handling of the raw assets that are returned. Will the product be sold as raw material or end-of-life recycling? Identify in-house or third-party providers that will help collect waste and dispose of assets in a sustainable and cost-effective way.
Establishing A Financial Value
Establishing a financial value is much more attainable when proper evaluations and examinations are in place beforehand. With a working surplus management system, it allows a company to focus on new and current product as¬†older product continues selling. This creates a huge opportunity for moving surplus goods, as big data will help maximize a value¬†due to the great amount of information for your¬†specifics and¬†industries. If you can manage to create a working partnership with a vendor that specializes in selling surplus goods, you can retrieve the data and infuse this information into your business surplus. This way you can gain helpful insight into your goals for¬†a¬†new product¬†or¬†how to market it once the product¬†becomes second generation. Having this idea of what a project is worth beforehand allows your business to set attainable goals during the entire lifespan of the product’s marketing… which results in a greater business recovery.
A big way that technology helps with moving surplus materials is the fact that the online market allows you to¬†reach across the world in terms of selling product. An established marketplace can reach a significantly high number of buyers, so once you market a¬†surplus to a large market it can help you achieve a maximum value for product… that may have been determined as¬†loss¬†in the past. This also provides you with transaction¬†numbers, so you can ensure better results in the future with¬†surplus goods.
With these advances in technology and surplus marketing, following a strategy for reverse supply chains couldn’t be any¬†easier for businesses to benefit from. As you’re marketing product of the future, it would only make sense that you infuse this technology into your business as well.