UPS® Reverse Logistics
Optimizing reverse logistics, and more specifically, how returns are managed, has become essential to running a successful retail business. Improve your gross margin and reduce processing costs and return rates with the support of UPS Returns Solutions.
What is Reverse Logistics?
Reverse logistics, also referred to as returns logistics, encompasses the process related to returning goods back up the supply chain after the initial sale of a product. The goal is to recapture as much value as possible through the resale, reuse, recycling or disposal of the product.
UPS Reverse Logistics is Designed to Serve Your Returns Processing Needs
Our system-driven workflow drives speed and efficiency through simplified decision-making. UPS offers a wide array of return capabilities.
Multi-Channel Returns Processing
Reduces your cost to store and investment tied to returns inventory by improving returns inventory turnover.
Optimized Workflow
Our system-driven workflow drives speed and efficiency through simplified decision-making.
Integrated Forward and Reverse Operations
Co-located forward and reverse operations cuts returns processing time and eliminates costly transfers and double handling.
How Does the Reverse Logistics Process Work?
We've taken the complex reverse supply chain process and broken it down into three easy steps.
1. It Starts With a Return
1. It Starts With a Return
The process begins when the end-consumer returns a product. The product is sent to a returns collection center to be processed. With returns collection centers in convenient locations, we are able to start your returns process sooner.
2. The Return Gets Processed
2. The Return Gets Processed
The return is processed upon arrival to the collection center. The processing begins with a worker inspecting the item and grading it based off its condition. This will help determine the final channel of the item, which is determined based off a pre-agreement between us and the customer.
3. The Final Channel is Determined
3. The Final Channel is Determined
After the grading process, the final channel for the item is determined. There are three channels: Original Fulfillment, Recommerce and Disposal.
- If the product is in its original condition and is returned in a timely manner, it will be directed to the Original Fulfillment channel, which is back on the original retailer's shelf.
- If the product is in damaged packaging or has been returned out of season, it is directed to the Recommerce channel, which means the product is resold through a third-party channel.
- If the product comes back damaged, it is directed to the Disposal channel, which is carried out by the customer’s disposal vender.