MGT302 Discussion 2 Week 5 Logistics of Product Returns

Discuss the problems associated with reverse logistics or product returns.

Wisner (2007) defines reverse logistics as the reverse flow of goods from the customers to sellers whenever they are returned. The major problem with reverse logistics are the financial burden that the company bears. The cost is usually heavy and can usually go up to 5 times for online purchases. This can be seen as a loss and the company’s device ways to ensure that the returned product does not all go to waste and they have to recoup the product through resell. This resell involves inspection of the returned product, refurbishment, repackaging and taking them back to the inventor. If the process is not, then the company just bears the loss.

Consider a product that you have recently returned. What was the impact on the business where you returned the product?

There was one time I ordered a laptop online. Form the pictures online the laptop seemed to be the real deal or so I though. However, when it came I was less impressed. The product had several fractures and the package was not properly sealed and the laptop was partially damaged.  I called to follow up and the customer service representative informed me that they would replace the laptop with a new one and as consolation I could remain with the first one. The company in this case had the financial impact which came in the form of forward logistics. Since they could not refurbish or resell the product they just had to opt for the losses incurred.

How did the return process influence your sense of product service and satisfaction?

From experience nowadays consumers who purchase products online mostly consider the return policies before opting for a purchase. Many prefer fast and straightforward policies and those that do not involve third parties.