Blockchain Implications On Reverse Logistics

As online retail continues to grow so does the need for better reverse logistics to handle customer returns. A recent report from Cerasis found the costs of reverse logistics exceed $750 billion per year, with up to 30% of all products ordered online being returned.

The return process varies widely across retailers, but overall product returns are burdensome to consumers who are forced to pay the shipping costs, or for the retailer who is picking up the charges, only to then try and charge the supplier.

The report from Cerasis, a transportation and logistics firm, looks at how applying blockchain technology to reverse logistics might reduce costs and better streamline the customer experience. Reverse logistics can cut into retailers’ profits by as much as 20%, according to Cerasis. The report states retailers can reclaim up to 32% of the total product cost by having an effective reverse logistics function which allows for possible reselling the item, recycling it or remanufacturing it.    MORE

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