All my clients knows that, I’ve always introduced Refurbishment services, as not only a reverse logistic solution, but also as solution for financial dept.
The first step towards defining your reverse logistics strategy is to understand the current returns flows, including: identifying the total cost
of returns (by product, by market, by channel – including the impact on any indirect taxes such as customs and duties, VATs etc as well as any regulatory constraints that may limit returns to/from certain countries), profiling the end-to-end returns and quantifying and categorizing your return flows. This information becomes instrumental to facilitate an accurate definition of your strategic approach to manage returns and will indicate where supply chain risks need to be mitigated.
Big part of companies , works looking for a cost-effective solution for their returns; Often the solution it’s a credit note and/or replacement 1to1. This process means a loss of industrial price cost including indirect taxes like VAT for example due to returns.
If company company choice is to refurbish all their returns, meaning that , getting new life them, and re-selling them the revenue can recove , minimum, 70% of tax/industrial value loss, in some cases, can recove 100% and get in add a minimum margin.
let’s talk about it