Reverse Logistics – A Competitive Tool

In today’s fiercely competitive market environment, customer retention strategies play an impor­tant role. To retain the existing customers, manufacturers are creating switching barriers by extend­ing value-added service to the customers.

Procedural efficiency in the logistics operations is enhancing the service capability of the firm to satisfy the customer. To remain competitive and differentiated, more and more firms across the world are displaying both speed and reliability in their service offerings, such as:

• Replacing defective goods
• Repairing the used product
• Refurbishing the returned product
• Calling back substandard or harmful goods
• Disposal of product waste

The additional services mentioned above are contributing to the competitiveness of the com­pany operating in a regulatory environment. They are also creating customer value by providing a clean environment through reverse logistics services without any extra cost to the customer. Today, corporations across the world are leveraging reverse logistics for growth through enhancing the level of customer satisfaction beyond the traditional boundaries of product and service supply.

Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.