Camila Affonso examines best practices for optimizing reverse logistics costs

One of the biggest challenges in retail today is offering an exchange and return service that has a positive impact on the customer journey without excessively driving up reverse logistics costs.

The article published by Mundo Logística magazine, written by Camila Affonso with contributions from Eduardo Muniz, shows that this is a difficult equation, but not an impossible one to solve.

On one hand, consumers are becoming increasingly demanding when it comes to exchange and return policies, which impacts various indicators, such as customer lifetime value (LTV). This concept estimates the total value a customer spends with the company over their lifetime. Buying an item with the assurance that it can be returned if needed increases the likelihood of future purchases.

For retailers, on the other hand, reverse logistics costs are high: beyond transportation, returned products take up 20% more space, and while half of them end up being discarded, the other half requires a specialized team to handle sorting, cleaning, minor repairs, and labeling. But it is possible to reconcile a high service level with controlled costs by using smart, innovative strategies in overall logistics chain planning.

Visit the site and check out the full article: https://mundologistica.com.br/artigos/desafios-da-logistica-reversa-para-cadeias-de-suprimento-do-varejo