Reverse Logistics Digitalization

Reverse Logistics
Digitalization App

Problem Statement

Challenges in RMA (Return Material Authorisation) process under Reverse Logistics involving product returns/recalls from customers from multiple geographies.

With the surge of e-commerce activities which are B2B and B2C online shopping, there is multiple parties involved from forward logistics point of view such as customers, fulfilment centre, and distribution centre (DC)/ 3PL warehouses. A similar range of activities are also managed under the reverse logistics part as well such as customer care, distribution centre/3PL warehouses, claims dept and insurance. With influx of returned items/Product recalls, there is a constant challenge to manage the handling of the documentation, physical verification records/data involved in the reverse logistics process, enabling diligent claiming to insurance companies under contract as well as provide enhanced customer service and greater customer relations

The present RMA process, if inefficient and expensive, there are opportunities to gain both internal and external efficiencies by utilising advanced technological capabilities as well as claims which can improve the cash flow within the organisation. It will also bring in the right accountability to reduce manual errors arising from the same root cause. The impact in productivity, customer satisfaction and quality to fix the current inefficiencies in the RMA process and stem leakages is prime for any organisation.

Technology is transforming the way reverse logistics process is executed across all industries world-wide. To gain value and reduce the inefficiencies, organisations are addressing to resolve some of the below pain points using emerging technologies such as blockchain, AI (Artificial Intelligence), Machine Learning.

Unable to ensure the returned material indeed landed in the right Distribution Centre (DC) causing additional loss of asset
RMA document raised by customer placing the claim on returned stocks with respective courier/carrier companies picking and delivering to DC has inefficiencies resulting from lack of contract compliance which is resulting in loss of claim.
Lack information to claim the right amount with courier/carriers and or with insurance in case of recouping lost productivity
Lack visibility for proper chargeback of the RMA linked which if improved can help with increased accountability

Company initiatives and mandates are underway globally, striving to transform reverse logistics process involving multiple parties and bring higher value across the business enterprise.

Organizations are working to stem the leakages and enhanced business benefits and assess the potential savings from improved control and compliance, and process efficiencies with digital platforms/solutions.

The Business Need

Financial leakages due to high cost and impact of returns, is making organisations to look at optimising their reverse logistics process that is replete with fragmented and inconsistent data and lack of trust among the stakeholders.

Challenges

Business Scenario

Organizations are facing influx of returns from customers with growing volumes and reverse logistics process from different geographies has critical inefficiencies incurring increased cost of handling and leakages

Organization face a costly returns handling process and streamlining the reverse logistics process is becoming a critical business requirement

Organisations are moving digital with higher automation, greater visibility, increased savings with their RMA/Sales return process and overcome the cost overruns and loss of profit

Relieving the manual process can reduce the overall impact and costs of reverse logistics. It may even uncover a hidden value in its returned assets. However, it needs a proximity to the participants involved in the process.

The return process has become more complex, and organisations can no longer afford not to concentrate on their reverse logistics – there’s too much at stake in terms of brand protection, sustainability requirements & profitability.

Stock return process is a time-consuming activity involving manual tasks and delivery delays significantly affecting customer service as it is unplanned activity and need to have agility in real-time

dltledgers Can Help You

Our state-of-the-art blockchain-based platform provides a smoothened and streamlined reverse logistics process involving multiple suppliers from multiple geographies.

This App ensures that there is a consistent data/document sharing digitally and enforces effective risk-free contracts with courier/carriers, enable reduced cycle times and enhanced user efficiency eliminating time-consuming manual tasks. The app also enhances greater real-time collaboration with tamper-proof record of transaction documents and data with auditability. It will help with plugging the financial leakages by authenticated claims management process activated in the platform to remove critical inefficiencies in the RMA (Return Material Authorisation) process. You will be able to now verify and acknowledge claims and returns in advance before release of refunds/payments and or claim with insurance companies.

The app also enhances greater real-time collaboration across stakeholders in a multi-party environment with tamper-proof record of transaction documents and data with auditability and improved operational visibility, shipment linkages between PO/SO/Freight documents (Air way Bills, Billof Lading, Rail Receipts, Road Transport Receipts etc) leading to auto-reconciliation in real-time.

Solution

Solution Brief

Identification of return-label information in RMA (Return Material Authorisation) document to pre-sort into returned item groups for more optimised and accurate processing of the sales/product return/recall
Enhance collaboration with multiple parties in multiple geographies with improved user-efficiency and end-user experience
Optimising and automating processes for verification control (item quality and condition) with multiple parties in the reverse logistics process
Greater visibility and transparency across the digital network to drive ethical behaviour throughout the reverse logistics supply chain with accountability
Reduced supply chain cost, risk and inventory, with significant working capital improvements and data authentications to place claims diligently
Streamlined RMA process involving multiple parties internally (Distribution Centre, Customer Care and Claims dept) and eternally (Customer. Carrier/courier companies, insurance cos etc.) in multiple geographies in a digital network
Accurate data and digital document repository with auditability across functional departments and ecosystem participants for valuable insights refining the process.

Benefits

dltledgers innovative solution allows to streamline the Reverse Logistics Process with timeline of events and transaction documents for real-time tracking of the returns.
The increased ecosystem visibility across the multiple stakeholders helps provide clarity on the Return Material Authorisations (RMAs) and Apps integration with internal DC (Distribution Centre) users/systems permits a seamless execution.
The resiliency and customer experiences are greatly increased with digital sharing of data/documents reducing manual errors and lead times.
The solution helps to mitigate risk in Reverse Logistics framework with enhanced visibility, auditability and track/trace capability on data/document flows.
Financial leakages can be plugged by a diligent claim process with insurance companies/logistics service providers and reduce the claim cycle times by 50%.