Improve reverse logistics and returns management with Power BI analytics
Reverse logistics-the process of managing products as they move backward through the supply chain-has undergone a major transformation, from being considered a back-office activity to becoming a major business issue. With the growth of online shopping, this return volume is also explosively increasing, throwing tremendous operational challenges at different businesses across industries. For many retailers and manufacturers, being able to manage returns properly can mean the difference between profit and loss.
The return journey has to be as convenient as the buying one for today’s customers. Behind that chic and seamless experience lies a complicated mesh of processes many companies are hard-pressed to even time-optimizing. This is where Power BI analytics comes into play-in transforming the way companies manage, analyze, and optimize their reverse logistics operations.
The Problem: Why Reverse Logistics is a Bottleneck
Today, reverse logistics functions as a massive bottleneck that generates uncertainties, thereby sowing inefficiency into an operating network that extends throughout the entire business. The major challenges originate from many critical factors that deter smooth operation.
Conventional supply chains, in essence, cater to the movement of goods in one direction-from the manufacturer to the customer-in a somewhat linear fashion. The reverse wills: if goods move in reverse, they quickly hit hard upon a system that is far from being adaptable to such opposing flows. This unpredictability of returns further increases the dilemma since it becomes difficult to plan resources accordingly.
The complexity arises when considering that every one of the returns has an inspection, sorting, and routing decision to make. Rather than forward logistics, where products take a predetermined path, returns require an individual judgment about what to do with each item-that is, whether to keep it, refurbish it, recycle it, or throw it away.
In addition to that, many businesses still use manual ways for returns management, causing further delays and errors. “Most retailers consider most of the time spent on manual returns processing to be their biggest challenge”. The problem only worsens with an increase in the volume of returns, this system can hardly be sustained.
Read More :- https://megamindstechnologies.com/blog/reverse-logistics-and-returns-management-with-power-bi-analytics/
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