Octolan Technology

Reverse logistics includes a traditional returns process, but the breadth is far wider. While returns focuses on bringing product and materials back from the buyer or consumer to the source, reverse logistics has a more holistic view of the entire process. For instance, reverse logistics starts with the process of qualifying and accepting the request to return materials to the seller. This precedes the actual return of merchandise. Similarly, a return focuses on bringing merchandise back into the ownership of the seller. Reverse logistics, however, looks deeper into the appropriate method to physically move the merchandise back to the seller or agent, determine disposition and maximize the value retained in the item if possible. This process very likely also addresses the methods available to reuse, recycle or dispose of merchandise responsibly.

A WMS has excellent tools to help manage the receipt, storage and shipping merchandise to customers. This likely includes parcel and freight management, inventory location management and even a certain amount of order management capabilities for 3PL operations. The software publisher optimized the solution to provide maximum efficiency and accuracy of order fulfillment. The reverse logistics challenge has many of the same components, but changes the responsibilities each party executes. In the case of drop ship consumer orders, for instance, a reverse logistics solution must account for the method to ship or move product back to the seller or its agents. This might mean returning to a store, packaging and shipping with a prepaid label, or utilizing a network similar to the Octolan Cooperative to find locations convenient to a customer to drop off items for consolidation back to the seller. Add the complexity of disposition determination and disposal or liquidation of items and the core capabilities of a WMS need a great deal of modification to fit these needs. Some WMS providers have these capabilities, but more often than not the specific requirements of the returns management system, such as providing proof of condition before and after a return, blend the eCom, order management and logistics world beyond the core competencies of a shipping and inventory management solution.

The answer might include all of the above. With the complexity of fulfillment models, sourcing and drop-ship scenarios, the lines of responsibility can become blurred. Each fulfillment model might need different components of a reverse logistics solution to have the maximum benefit for all parties, but engaging with a company like Octolan that specializes in this flow and our distributable technology allows your partners to act as agents on your behalf to create value where lost revenue exists today.

The responsibility to prepare items for auction or liquidation can create a heavy burden in the reverse logistics flow. Fortunately, the returns flow within the Octolan Technology solution prepares and organizes these assets for you within the returns process. The product even documents the condition of the merchandise through distributable or linkable images! We integrate with auction sites to sell the items on your behalf or prepare lots for liquidators to purchase.

Many retailers and eCommerce sites have generous returns policies. This, coupled with an equally generous credit taken from invoices, burdens the vendor. Although this situation can seem hopeless, we can help. The Octolan Technology Returns Processing product helps vendors perform the due diligence to contest credits taken off invoicing, thereby decreasing lost revenue. We do this by organizing data and associated imagery to document the condition of returned merchandise. Although not all sellers will reverse credits taken, this solution provides leverage to negotiate better terms for contract renewals with your buyers.