How Important is RMA Logistics?

The RMA logistics is a process that involves handling of products returned by selected customers. This type of logistics is somehow overlooked in many supply-chain planning. It is otherwise known as a source of wastage as companies may not provide lean processes in terms of handling damaged, defective, incorrect or mislabelled shipped items once customers return them.

Just recently, many online businesses have paid more attention to the RMA logistics, so that it can focus on the supply chain sustainability. This function has greatly affected the environment, waste and risk costs of many supply chains and logistics systems.

RMA or reverse logistics do happen in store operations, wholesale and retail distributions and manufacturing. They need to be handled effectively so that the returns will not have a huge impact in the long run. In fact, many of these returns can greatly affect electronic sales and the sales in publishing industries. They minimise manufacturers and retailers’ average profitability by up to 4%.

Better RMA Logistics

Companies that never consider lean procedures for the returns,processing, repairs and replacements of products may produce considerable waste. If the RMA Logistics process can be handled efficiently, this will improve profitability and add value for all its customers.

To minimise losses of the logistics process, a business may need to pay attention to processing and movements. This can make a major source of wastage and inefficiency. The worker movements, item flows and facility layouts must be carefully considered. Workers must provide quality check on the products sent so it saves returns with minimal travel. They must also ensure that relevant information, replacement packaging, tools and other materials are at hand. They may want to use activity charts and processes for the analysis.

Creating a Lean Return Process

The actual returns process must include a return policy from the company, the RMA procedure, technology tools and third-party logistics providers. All these elements will determine a major impact on having a lean and effective return process.

So, if you have a well-planned RMA logistics operation, you’ll surely benefit with such proposition. You tend to satisfy your customers, improve your company’s reputation, minimise costs and increase focus on sustainability. Fortunately, this is possible if you establish a competitive edge for your company.