Optimizing your
reverse logistics can help you reach one of your primary business goals –
increasing revenue.
Done right, reverse
logistics improves customers’ overall experience, minimizes wasted spend, and
increases efficiency. So, choosing the right company to oversee this process
(or using the right software to do it well yourself) is vital.
We put together a
list of eight top reverse logistics companies along with a brief description of
their unique features to help you determine if they might be a good fit for
your business. Plus, we’ll show you how to optimize your own system for
in-house logistics.
What is Reverse
Logistics?
Reverse logistics is
a process of moving goods or services from what is usually their final
destination to another location (either back to their origin point or to another
designated location). Reverse logistics is typically work that happens after a
product or service is delivered. This can include product returns, recycling,
and exchanges.
A great example of a
business that uses reverse logistics is Oco Meals, which offers a “zero waste”
meal delivery service to customers across the greater Vancouver area of Canada.
After Oco Meals delivers meals, they retrieve their reusable food containers
from customers, which drastically reduces their environmental impact (by keeping
these containers out of landfills) and helps build brand loyalty with
eco-conscious clientele.
What Do Reverse
Logistics Companies Do for Businesses?
Some of the services
third-party logistics (3PL) companies commonly perform:
- Pick
up returns and bring them back to a warehouse or other location to be
restocked
- Streamline
and oversee reverse logistics supply chain management
- Inspect
and repackage returned products or parts
- Manage
inventory (store products within their own warehouse and reorder when
necessary)
- Handle
customer refunds
- Reverse
logistics companies can manage all or just part of your reverse logistics
process, depending on what you need.
8 Top Reverse
Logistics Companies in 2020
Below you’ll find a
breakdown of eight of the most popular reverse logistics providers. Each one
offers unique benefits to businesses. Some are global companies that specialize
in worldwide logistics, and others offer fast access to most of the United
States. We’ve highlighted some of the most distinguishing features each company
offers to help you determine which 3PL company might be best for your business.
1. XPO Logistics
According to their
website, XPO Logistics is “the second largest provider in North America, with
over 100 million sq. ft. of facility space in the Americas and Asia.”
They offer forward
and reverse logistics solutions to both business-to-business (B2B) and
business-to-consumer (B2C) companies in multiple countries. XPO Logistics not
only processes returns, but they also handle refurbishing, disposal, and/or
product recycling.
2. ShipBob
ShipBob is a
tech-savvy 3PL focusing on forward and reverse logistics services for
direct-to-consumer (D2C) eCommerce stores. They offer seamless integration with
eCommerce platforms, including Amazon, Shopify, and BigCommerce (among others).
ShipBob can store products in their warehouse and then package and ship them to
consumers. ShipBob offers their own process for returns and also partners with
Happy Returns and Returnly.
3. Bowman Logistics
Bowman Logistics
offers a wide range of logistics and storage services, including pick and pack
for eCommerce businesses, temperature-controlled food grade storage,
consulting, and space for lease. Bowman Logistics offers warehousing and
returns management for B2B and B2C companies.
4. Mercury Logistics
Mercury Logistics
boasts a centrally located U.S. headquarters that is “within 1 day’s drive of
more than 60% of the country’s population.” They handle forward and reverse
logistics across an array of industries, including automotive,
health/pharmaceutical, and alcohol/spirits. Mercury Logistics uses Microsoft
Dynamics AX to provide real-time order updates and live tracking to customers.
5. Optoro
Optoro provides
businesses with a technology-driven and consumer-focus reverse logistics
solution.
Their focus is on
returns management and recommerce for retail stores and eCommerce businesses.
Optoro also partners with Returnly to handle refunds and other aspects of the
reverse logistics process.
6. Zipline Logistics
On their website,
Zipline Logistics boasts the “highest level of customer service in
transportation” based on their Net Promoter Score. Zipline Logistics provides
grocery and beverage suppliers with temperature-controlled shipping options in
addition to serving other industries.
7. ShipWizard
ShipWizard provides
“end-to-end 3PL services” to a variety of eCommerce stores and other
businesses. One of their key offerings is reverse logistics management, with a
focus on customer experience. ShipWizard offers integration with an array of
eCommerce marketplaces, including Amazon and eBay.
8. GEFCO
GEFCO provides
logistics solutions by land, sea, and sky to businesses across 47
countries.
They serve businesses
in vastly different sectors, including fashion, aerospace, and healthcare. In
addition to forward logistics services, they provide reverse logistics and
urgent deliveries management.
Choosing between a
3PL and In-House Logistics Management
Outsourcing reverse
logistics to a 3PL provides considerable benefits, especially to businesses
that have a spread out client base or are shipping internationally. For small
businesses with limited space, stocking products in a 3PL warehouse can be a
great solution as well.
The major drawback to
using a 3PL is that you may lose control over your customers’ experience.
Anytime you hire a third party, whether it’s for delivery, shipping, or
logistics, you run the risk of subpar customer interactions. When you don’t
oversee the quality of the product or service provided under your brand name,
you need to be 100% sure the third-party company you’ve hired will deliver up
to your standards.
In the end, the
choice to either work with a 3PL or keep logistics in-house comes down to a
question of profitability for most companies. Depending on the size of your
company and the territory you cover, 3PLs can either help you save money or
wind up costing you more. In their article about the pros and cons of
outsourcing to a 3PL, Handshake explains that “A 3PL firm may be cheaper up
front, but over time will likely be more expensive than handling the shipping
functions in-house, provided those in-house functions are operating
efficiently.”
So, how do you manage
forward and reverse logistics efficiently in-house? With the right software.
Fulfill your own
reverse logistics
Managing returns,
exchanges, and other types of reverse logistics doesn’t have to be difficult.
Many small and medium-sized businesses handle their own pickups and returns
using route optimization software. Businesses can improve their reverse
logistics efficiency dramatically by simply incorporating robust software that
is capable of planning pickup routes in seconds.
For businesses that
rely on both forward and reverse logistics like Oco Meals, OptimoRoute is able
to seamlessly combine pickups and drop-offs for maximum efficiency. Oco Meals
delivery personnel pick up food containers along their delivery routes on
Sundays and Mondays to cut down on fuel costs and reduce their environmental
impact.
Using Reverse
Logistics to Stay Ahead of the Competition
The reverse logistics
process is a source of untapped potential for many businesses. Returns,
exchanges, and remanufacturing possibilities can get overlooked as they are
sometimes perceived to be drivers of cost rather than revenue.
This article was originally published at OptimoRoute.com