Subramanian
15/09/2015 Blog

An Article on Reverse Logistics

Reverse Logistics equals to Returned goods

A thought provoking article written by Mr. Subramanian, AGM on Reverse Logistics

“The courier, transportation and documentation charges are high. Each state has different rules and regulations. There are no specific guidelines from the government for carrying out reverse logistics functions. Many customers are returning their products taking the advantages of the policies, which results in losses.” The products that are imported in India have different warranty processes and due to various difficulties in cumbersome processes exchanging the product and coupled with various hectic documentation processes, reverse logistics in the country is not at par with the international standards.

Other major discussed topics are:

  • The cost of reverse logistics is more due to Customer interaction time being longer compared to forward shipments
  • When the reverse logistics cost and efficiency is compared between India and other countries, India is yet to make a mark.
  • The efficient planning of reverse logistics and managing returns effectively is a challenge.
  • In 70% of the cases, cost to process a returned item can be higher than the value of the product.
  • Most LSPs are charging the same as forward deliveries, but for reverse logistics it takes longer to deliver items back.