Reverse Logistics as a Safety Net for Profitability

Logistic Solutions ProviderLogistic companies such as ReverseLogix are in existence to specialize in efficiency with an eye towards the bottom line. They use the same attention to detail and efficiency in software development in creating efficient logistics solutions.

Here is how these companies help other firms handle logistical issues.


Traditionally returns cause a bottleneck in logistics. The returned item arrives at the warehouse at any time and without any notification or authorization. The process requires a quality assurance check on the item to understand where the problem lies.

This process can take days, weeks, or even months.

There are different schools of thought on how to handle returns. For some, they consider it as losses, and the company moves on while taking the loss in the books. In a fast turnover environment, this may be the only solution. However, it is also possible to earn from these returns.

Primarily, a quick turnaround, quality assurance check and resolution, and it can be back on the shelf in no time.

Loss to Inventory

For a company to make money off returns, it has to inspect the returned item and repair or refurbish as needed. In some cases, it may even sell the item as is at a lower cost. What is important is that it recovers the cost of the item or even just a portion of it.

Due to this, a company can squeeze some money off the returned item. This small amount may be enough for a small company to make a profit. The concept of reverse logistics has become a point of study and profitability for companies.

Other factors come into play when it comes to reverse logistics. What is important is that a policy is established and used as a baseline for returns and for putting these back on the shelves. It is also important that the quality assurance assessment should be done in short period.