Master Returns, Maximize Profit: Streamline Your Reverse Logistics

Transcript

Many retailers struggle with inefficient and costly return processes, leading to high operational expense, lost revenue from unsalvaged goods, and a negative impact on profitability.

This demo will showcase how a streamlined reverse logistics solution can optimize return workflows, reduce costs associated with processing and disposition, while improving sustainability and customer satisfaction.

Here’s the team that will be demonstrating the reverse logistics process today.

Alex, our CSR, will be initiating a return on behalf of Jordan, our customer.

Once the return has been received, Taylor, our store associate, will process it.

We’ll start inside the KIBO Composable Commerce platform as Alex, our CSR, is assisting our customer, Jordan, with a return.

Alex is already in the KIBO call center menu where he can easily find Jordan’s order by searching her order history.

Here it is, order sixty five eleven.

Clicking on that order, Alex is taken directly to the order details screen, where he navigates directly to the returns tab.

Here, he can see order details such as quantities ordered, fulfilled, returned, or rejected.

He can also determine if items are eligible for return.

This is where he will enter the details of Jordan’s return.

Jordan has ordered a few different items in different quantities and needs to initiate a return for all of it at the same time, but for different reasons and resolutions.

Alex starts with the Coburn hiking boots.

Jordan stated that these arrived damaged, and she would like to exchange them in the exact same pair.

Alex inputs that information into the return and moves on to the next line item.

Jordan ordered a couple of hiking shirts, but after trying them on, she didn’t really like the style or fit, so she wants to return these for a full refund.

Alex chooses no longer wanted as the issue, refund as the resolution, inputs the quantity of two, make sure all items being returned have a green check next to them, and hits the initiate return button.

With reverse logistics enabled, order routing is seamlessly integrated into the returns process from the moment a return is initiated, whether that is from a CSR like Alex, a customer initiated return through self-service, or KIBO’s agent.

This offers significant value, reducing return costs.

Upon initiating the return, order routing automatically suggests the best location to accept the items.

Alex sees a suggested return location prepopulated in the return creation model.

This is not a random selection, but an intelligent one driven by sophisticated routing logic configured within reverse logistics scenarios.

Alex will always have the option to override this suggestion, but he knows that the intelligent reverse logistics scenarios have taken the decision making out of his hands, allowing him to focus on Jordan and making sure she is happy with the process.

Reverse logistics can be configured to take the shopper’s reported product condition into account where products that might be immediately restockable are sent to the nearest location to save on shipping costs.

Alternatively, they can be routed to a location with low or no inventory of that specific product, assisting with inventory replenishment.

Any items that are reported as damaged or defective can be shipped to a location that is optimized for disposal, like the Edison DC here.

With the return locations decided on, Alex hits the create return button, informs Jordan that she is free to return the shirts in store as they have been routed to her closest location, or she can use the preprinted return labels being sent to her to ship everything back. A simple and easy returns process all controlled by Reverse Logistics.

A few days later, Jordan’s returned hiking shirts show up at her local store.

Taylor, a store associate processing the return, navigates to Jordan’s initiated return in the KIBO admin UI.

Here, she can see all of the details of the return, including dates and times, customer information, whether this is a return or exchange, and then has various options for processing the return.

At this point, she needs to mark the package as received.

She clicks the drop down next to receive package and clicks receive and dispose where she can receive the item in and verify its condition.

Taylor notes the quantity that she is receiving in, hits mark as received, and then navigates to the package disposition tab.

Here, she selects the products, verifies the quantity and condition, and then hits request location.

Order routing will suggest a specific disposition location for the items.

This suggestion is powered by the configured routing logic for disposition.

Taylor sees the order routing suggested location, which is prepopulated.

This condition based routing is disposal condition mapping, directing the return product to the most appropriate processing destination.

An item in good condition, for example, could be restocked at Taylor’s store location ready for immediate resale.

An item marked refurbished might be directed to a specific facility equipped for repairs, while an item in bad condition could be routed to a location optimized for disposal.

By automatically directing items based on condition, the system helps direct return products to the most cost effective and sustainable disposition method.

This intelligent routing helps reduce waste, cut costs associated with inefficient handling or unnecessary disposal of restockable items, and maximize asset recovery by ensuring items are routed for refurbishment or restocking when possible.

As with Alex, Taylor can still manually override the suggested return location if necessary, but the system provides an intelligent default.

What we’ve just shown is how the KIBO platform demonstrates its capability to simplify return operations.

By providing a clear guided process for initiating returns within the admin UI, it helps streamline the returns process.

Furthermore, the system supports clear return rules.

These rules can be configured to determine if a product is returnable, set maximum return quantities, and define return windows.

Implementing such rules helps reduce fraud, control costs, and optimize returns by enforcing defined policies automatically.

As mentioned earlier, returns can be driven by sophisticated routing logic configured within reverse logistics scenarios.

These scenarios are set up similarly to how fulfillment routes are defined using locations, filters, and sorting options.

The logic can prioritize locations based on various factors.

The first scenario automatically routes items potentially needing disposal directly.

The second goes to the closest brick and mortar store based on distance and carrier cost, which queries shipping providers to find locations with the lowest shipping cost for the return trip, helping to reduce costs with handling and packaging.

The third scenario prioritizes locations based on lowest available inventory, aggregating available inventory across all requested return items and prioritizing locations with the lowest count, which is particularly useful for restocking efficiently.

Scenarios can be reordered at any time to reflect changing business priorities.

Scenarios are also configured for the final condition of the product, which is the workflow that Taylor, our store associate, navigated through with Jordan’s return.

Locations can be included based on the product’s received condition where they can either be restocked, sent to a location that handles reconditioning, or routed to a location that is optimized for disposal.

This automated intelligent return routing based on configured scenarios ensures that items are sent to the most appropriate location without Alex, our CSR, having to perform complex calculations or checks.

As I mentioned, Alex can still manually select a different location if necessary, but the system’s suggestion is a smart default.

This automated process helps to speed up returns and, consequently, improve customer satisfaction by making the return process smoother.

A well designed reverse logistics system can also significantly increase sustainability by facilitating the reuse, refurbishment, and recycling of return products and materials.

In essence, for Jordan’s return, the KIBO composable commerce platform simplifies the entire process.

From Alex initiating the return, benefiting from clear rules and automated location suggestions, to tailor receiving the item and getting intelligent handling recommendations based on the item’s condition.

The configured reverse logistics scenarios and order routing capabilities handle the complex strategic decisions about where the item goes and how it’s handled, optimizing efficiency, reducing costs, supporting sustainability goals, and freeing up frontline users to focus on customer service.