Reverse Logistics

Reverse Logistics in the Big Box world begins when a product for any reason goes backwards through the supply chain. Some reasons for reverse logistics are:

  • Customer Returns – Dissatisfaction, damaged product, warranted return, fraud.
  • Return From Stock – Warehouse returns negeotiated with the supplier usually when an item is no longer to be sold as is though the retailer.
  • Return To Vendor - Store and Warehouse returns to a supplier due to either negotiations with the supplier or a forced return due to issues with the product.
  • Recall – Either a voluntary or mandatory return of all products throughout the supply chain due to safty issues.
  • Rework – Items need to be returned and reworked or repackaged then returned to the retailer for sale.

These five reasons for reverse logistics are the most basic. There are dozens more that effect suppliers in the same way.

Regardless of the reason VCG reduces the financial burden on suppliers with both the process and the reconciliation.

Suppliers can save money on the front side of all reverse logistics, either with the proper management of a Defective Allowance program, or by negotiated returns logistics cost.

Within the process of a return there are many opportunities to save money that suppliers miss. VCG has helped its clients save on average 35% of the total cost of a Recall or Return To Vendor claim. You will not find a more experienced team of experts to handle a recall.