How Reverse Logistics Management Software Creates Value in Transport Logistics

Today, reverse logistics can be as important as the initial delivery.

Entrepreneurs frequently consider their company as their baby. Dreams are filled with hopes of the baby flourishing. A few growing pains are expected. Few look at that corporate baby and think, “What about when all of this goes backward?” Enter reverse logistics management.

Companies that provide a tangible product are aware of the reality of returned goods. CNBC reported on a national survey that said, “Retail returns jumped to an average of 16.6% in 2021 versus 10.6% a year ago,” creating a yearly total of over $761 billion.

This article shares how shippers and logistics service providers add tremendous value to their companies by investing in reverse logistics management software solutions.

What’s Driving Increased Reverse Logistics Demand?

Like most changes in life, the demand for transportation reverse logistics software and management is increasing due to multiple factors. Here are some of the primary components:

  • Increased e-commerce.
    The rise of two-day shipping promises predated the Covid-19 pandemic. Now, with more companies utilizing e-commerce for their B2B and B2C transactions, more products are first seen at delivery and thus more likely to be returned.
  • Changing customer habits.
    The customers of 2022 are far different than customers of the past. Increased sustainability concerns, online procurement research, and remote employees are just a few trends that have drastically changed purchase habits.
  • The need to stay competitive.
    The “hassle-free returns” slogan is one that consumers seek out. This e-commerce driven change begs businesses to properly strategize the impact of reverse logistics in a way that can offer a smooth return from the front of a transaction.
  • A recent record-breaking peak season.
    As noted above, 2021 was a truly remarkable peak season. With this peak season in the rearview, industries are trying to forecast appropriately, causing a rush demand for transportation reverse logistics software.
  • Uncertainty over the future.
    After two years of “unprecedented times,” companies have realized the importance of resilient logistic solutions. Transport logistics software is being rapidly developed and tested to maximize efficiency and long-term business success.
  • Winter weather.
    As inclement weather spreads around the globe, delayed shipments are becoming the norm in traditionally sunny climates. From parcel shipping to steel coil transport, weather-induced delays and damage have led dissatisfied customers to return products.

Reverse Logistics Software solutions Help Shippers Manage Returns

With the above factors in mind, shippers and logistics providers need to plan how their transportation management system will manage returns.

Just as customers can complete a return merchandise authorization (RMA) online, shippers can do the same thing through transport logistics software in management platforms like MercuryGate’s. With the ability to schedule and pay for everything in one system, shippers can plan appropriately. This proactive approach prevents the potential for unexpected products to arrive and require immediate removal.

Many might still ask, “How does reverse logistics create value?” Ultimately, reverse logistics software enables efficient customer service that meets customer needs at minimal cost to the company.

Efficient return transportation also minimizes the likelihood of return goods declining or being damaged, which is critical to recapturing the total remaining value of that product.

Why Integrated Logistics Software Solutions Enable Better Reverse Processes

Logistics collaboration is critical in the supply chain. Due to the large amounts of data required for both directional flows, all logistic resources utilized must integrate correctly. After all, data is only as helpful as it is correct and easy to access.

Properly integrated transport logistic solutions ensure accurate freight tracking during transit and provide realistic ETAs throughout the returns process. This aspect adds to the other ways that logistics returns software can minimize costs incurred by unplanned returns. Accurate tracking also prevents cross-contamination or damage when transporting health, beauty, and food products that are more delicate.

Calculate your potential Saving While Using an enterprise TMS

Expand Your Reverse Logistics Management Software Well Into the Reverse Supply Chain

Collaboration becomes easier when transportation leaders, logistics managers, delivery carriers, and drivers can communicate with an integrated system and innovative platform.
Is there logistics software in place? Does it integrate well with other elements unique to reverse transport?
The Investment in a transportation reverse logistics software not only saves money and maximizes efficiency, but it adds value and resilience to shipping and logistic provider companies.

From returns and reverse logistics to white glove services and dynamic rerouting, learn more about the delivery management activities supported by MercuryGate’s transport logistics software.

Download the brochure detailing MercuryGate’s delivery management capabilities.

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