A recent white paper, "Recovering Lost Profits by Improving Reverse Logistics," written by Curtis Greve and Jerry Davis of Greve-Davis and commissioned by UPS, found that when effectively managed, reverse logistics can uncover hidden profits, reduce liability and improve customer satisfaction.
According to the Aberdeen Group Inc. , the average manufacturer in 2010 spent between 9 percent and 15 percent of total revenue on returns. Had they recognized the value of an improved reverse logistics process, those same manufacturers could have instead increased revenue up to 5 percent of total annual sales that year.
In fact, when viewed holistically - from the returns policy to product repairs to recycling and disposition - a strategically managed returns process can often produce profits rather than waste.
