With return rates on the rise, retailers are looking for new, innovative solutions to help optimize and streamline reverse logistics.
In our latest white paper, we explore the benefits of Returns Optimization Platforms (ROPs); a new way for industry-leading retailers and brands to capture value by turning distressed inventory into additional value. An ROP is a software platform that optimizes the entire reverse logistics lifecycle and helps create more value from returned and excess inventory while removing cost from the supply chain. Finding the right technical solution is essential to increasing inventory recovery and velocity, reducing warehouse costs, and increasing visibility across the entire reverse logistics supply chain.
The Value of Returns Optimization Platforms
Leading retailers and manufacturers are using ROPs to deliver four key areas of value:
- Holistic processing cost reduction. Per-item processing costs in reverse logistics are inherently high because of the he unpredictable volume and variance of inventory. Leading brands are using ROPs to reduce processing costs by streamlining workflows and handling processes across multiple segments of the reverse supply chain.
- Achieving higher profitability on distressed inventory. Getting an item to the next best channel as quickly as possible helps to avoid value depreciation and allows a retailer to sell at a higher margin. ROPs allow leading retailers and brands to achieve higher recovery by dispositioning inventory to the highest-recovery channel, at first touch.
- Increasing supply chain visibility. One problem with existing liquidation is that retailers and manufacturers lack data they can use to understand and improve performance. By using ROPs to capture data such as the location and condition of on-hand inventory, retailers and brands can begin to understand trends in distressed inventory to make better forward purchasing decisions.
- Delivering control and flexibility to business owners. Business needs are never predictable, and what works in one month or quarter may not be what is required in the next. With Returns Optimization Platforms, retailers and brands can adjust the mix and nuance of tactics to ensure they are always meeting their business requirements.
To learn more about the key components of an ROP and how retailers are using these solutions, download our white paper Returns Optimization Platforms: The Solution Retailers Need to Improve Returns Processing.