Reverse Logistics Processes Lacking Automation are a Risk– Authentication of Returns

Capturing value from products that are moved from their original final destination is often difficult. But it is a standard practice that many companies engage in, with few taking advantages of automation and lean processes.  Instead, they rely on the third-party logistics company or legacy practices that existed prior to the shift to e-commerce business models, which have seen a steady increase in consumers’ return activities. Here we discuss why a change was needed for a major brand for supply chain integrity, consumer engagement, and brand protection, how Vi3 technology fits, and the impact Vi3 had in terms of cost savings and actual and intangible ROI.

A recent article from Footwear News about holiday shopping returns underlines a need for automation.

The problem: A brand had an increase in product returns, e-commerce and retailers, and resource constraints that led to less effective manual product inspections. This in turn allowed counterfeit products to enter back into supply chains, which increased costs for additional processes required for corrective action plans and claims and also resulted in a negative brand impact for consumers.

Legacy Process:

New Process with automation:

The outcome from these changes were:

  • ROI ~$100,000 counterfeit products removed from inventory in three-month period
  • Direct labor cost reduction of 25% for similar volume throughput
  • Intangible ROI with consumers not being exposed to non-genuine products

These outcomes were achieved using V Source mobile Reverse Logistics feature.  This feature removed the manual paper process and uncertainty during product inspection, providing inspectors with real-time product information and visual guides, thus improving inspections speed and accuracy. Implementation took only a few hours to setup, train and execute the new workflow with the new automation features.

If you want to learn more about this feature of V Source, connect with us at info@vi3global.com

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