In recent years, reverse logistics has moved from the back room to become a significant component of the logistics operations for businesses.

While traditional forward logistics involves moving new product to customers, reverse logistics is concerned with product moving back to the business. It can encompass product returns, product recalls, customer service repairs and exchange programs.

Forward-thinking companies have realized that the reverse logistics product stream represents a treasure trove of information about products and customers.

For example, product returns yield information about product quality and failing components. A high incidence of no problem found (NPF) product may signal a problem with product complexity, instruction manuals or customer support. Analysis of returns can yield product changes and design improvement ideas.

The customer service component of reverse logistics presents many opportunities for the firm as well. In many cases, this will be the only direct contact that a firm has with its customers. The ability to consistently perform a high quality repair in a short period of time is a powerful endorsement of a company and its reputation.

Originally implemented in logistics for shipment tracking, track and trace systems have long been used in reverse logistics applications to track returns, customer service orders, recalls, etc. Besides tracking return authorizations (RMA), these barcode-based tracking systems are now tracking defects, replaced parts, customer complaints and comments, quality of repairs - virtually everything that you need to know about the product.

Effective reverse logistics operations require rigorous measurement against key performance indicators (KPI) for such parameters as turnaround times, repeat repairs, failing part frequencies, pareto tracking of problem and resolution statistics, etc. Effective track and trace systems are a critical component of a professional reverse logistics operation.

For example, using track and trace, one forward-looking firm tracked which offshore plant had produced the returned product - an effective method of monitoring the quality of various offshore manufacturers.

An added benefit was that this performance was tracked on a real-time basis allowing rapid adjustment for the manufacturing process.

Track and trace applications are particulary suited for cloud or software as a service (SAAS) implementations - everything becomes on-demand and real-time. Problems are identifed earlier and unbiased, objective quality data is visible throughout the organization.

Question of the day: can better tracking transform your reverse logistics operation?

Norm Plummer, President - Haeiwacom, Inc.

Haeiwacom provides real-time track and trace solutions for manufacturing, reverse logistics and service applications. Consisting of process control, warehouse management and document management modules, the Haeiwacom solutions are delivered as software as a service resulting in cost savings and straightforward, practical implementations.

Web: www.haeiwacom.com