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What Are the Five Rs of Reverse Logistics?

If you think pleasing your customers is about the flow of goods from retailer to the consumer, you're mistaken. It is all about managing returns, which is undoubtedly a challenging task. This is because most supply chains and IT asset logistics management teams are developed to move the products from one point to another in the forward direction. They pay less attention to tackling and handling the situation when it moves in the reverse direction.

Online shopping is the trend these days, and more people prefer it because it offers a hassle-free return policy. The return procedure and how a company handles it will determine how it has an impact on the firm's overall success. Returns management helps manage the end-to-end returns process, optimising the entire supply chain process. Returns management is an important term in every IT asset logistics management as it relates to many aspects of a product's return process. We have elaborated on the five R's of returns management in the article below.

Everything You Need to Know About Reverse Logistics in IT Asset Logistics Management

Reverse logistics can be defined as managing a reverse supply chain in IT asset logistics management. Here the products get shifted from the customers to the manufacturers, sellers or warehouses. The process commences from a customer who wants to return an item by opting for repair, credit, replacement or refund. It might also involve customers who want to return a product for resale, refurbishing or recycling and seek credits for another purchase.

Importance of Reverse Logistics in IT Asset Logistics Management

Reverse logistics is widely used to recoup the value from products that are returned and retain customer loyalty. Returns quantity has increased tremendously in recent times with the growth of eCommerce. The value of returns worldwide is roughly estimated to be a trillion dollars every year. Statistics state that nearly 30% of the products that are shopped online are returned, whereas only 10% of the items are returned during in-store purchases. Companies with efficient IT asset logistics management teams in India focus on addressing wastages and customer experience. Many customers are showing more interest in companies that offer a hassle-free returns policy. They are starting to care for the environment and do not want products to go to waste or be dumped in landfills. Every organisation in India has to figure out how to handle items when they travel in a reverse supply chain. The five R's of reverse logistics are reselling, returns, repairs, recycling and replacements. Let us discuss how to apply them in the business and improve the overall efficiency of a firm.
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Several companies assume that reverse logistics is about handling returns. But there is more to it, and it is the responsibility of the IT asset logistics management team to optimise the supply chain and manage reverse logistics.


If a customer does not want to have the purchased product, they can choose to resell it. Everyone has varying likes and dislikes, so it doesn't mean that the reselling product is of less value. Most of the items are returned because the customer is dissatisfied with them. This means that there is nothing wrong with the product. Many customers who lay their hands on resale products treasure them. Thus, the secondary market is gaining more popularity and companies who are seeking additional profits through resale are making millions annually. Thus, the first step every IT asset logistics management should take in reselling is to bring them back into the system by testing, repacking and returning to the inventory for resale.


The best ways to be followed by any organisation to eliminate returns are:

  • Sell only products of high-quality
  • Provide clear descriptions of the product
  • Do not ship the wrong products
  • Eliminate damage during transit or storage

After you fulfil everything possible to prevent the returns, offering a hassle-free return policy is crucial whenever necessary. You can craft a return policy based on your operation. Your ultimate goal must balance the requirements and satisfy the customers by covering up the return costs. However, this is possible only by big companies, and small firms will not be able to offer liberal and cost-effective return policies. Irrespective of the organisation's size, the IT asset logistics management team must establish a good system to receive, inspect and test items after they get returned.


A few customers do not opt for replacements; instead, they prefer to get their broken items fixed. But when the customer does not want to retain the product, you can provide on-site repair services and circulate the item back into the system. Some IT asset logistics management teams set up a repair centre to test, fix and send the item for circulation. You can provide discounts depending on the defect if the products have major flaws. On the other hand, if the item has a minor problem, you can tag them as reconditioned and sell.

Also Read: Asset Logistics- the Safe Way to Ship Electronic Items


As mentioned earlier, customers are showing more interest in sustainable goods and do not mind the price. Research states that 1 out of 4 customers focus on environmental problems and look into their impact while shopping. So, companies and their IT asset logistics management team are forced to make sustainable items on high priority. This helps companies reduce costs with effective recycling procedures. A classic example of this is: Apple regained forty million in the year 2015 through its recycling program.

Companies like Proctor & Gamble and PepsiCo are using reusable packaging. With a good IT asset logistics management team, companies in India can pick up these used packaging and return them to the warehouse. A firm can make important business decisions by tracking recycled items.


In most cases, customers want the same item to be replaced. This can happen when there are size issues when shopping for footwear, clothes, etc. When an organisation offers seamless replacement options, it improves retention rates, boosts sales and increases customer experience. Big companies in India with a well-established IT asset logistics management service will be able to ship the replacement products as soon as they get the notification that the returned items are on their way. Such an efficient logistics service will use a warehouse management system to manage and track both incoming and outgoing deliveries.

The Takeaway

Reverse logistics is essential for every modern supply chain as returns help in improving the positive customer experience. Therefore, many third-party logistics and warehouses are now updating themselves with technological advancements to offer an efficient reverse logistics management service that is cost-effective and hassle-free.Avon Solutions & Logistics provides the best mailroom services with effective reverse logistics, unlike any other company in India.

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