Why is there a need for a reverse logistics solution from a retailers perspective?
Darren BienOnline returns alone are expected to reach 90 million in 2005. This is $5.8 billion worth of goods that will be going back to e-tailers just in the United States. If we start to talk in those kinds of numbers and there is not a process for recouping a significant portion of that cost, returns will have a dramatic impact on retail profitability. Once merchandise is returned, retailers have already paid for it, and without proper processing it becomes dead stock. The faster a retailer can redistribute returns through a secondary channel or in their own stores, they can recoup more of the original cost. How do returns affect the entire retail supply chain? Mark HilinskiThe process of honoring and processing returns causes retailers to expend energy, resources, time, and money at many points in the supply chain process. One area it affects is a retailer’s relationship with its suppliers. There could be a real problem if a retail buyer bought 200,000 sweaters from a supplier, and
