week 5 Discussion

Amircal webb

0:199 Apr at 0:19

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Hey class,

According to our text the term reverse logistics is alternative term for return management. Return management is the movement, storage, and processing of returned goods. (Wisner, 2017).

The problems associated with reverse logistics or product returns within a company is that it may cost more to return a product than to send it out. Moreover, some company’s systems are incapable of handling returns due to lack of training, procedural policies for returns, or lack of information about the return. Additionally, returns can greatly damage a company’s reputation, customer service, and profitability.

When considering a product a recently returned I immediately think of clothing. Not to long ago I ordered something on Amazon. I typically go straight to the customer reviews to look at pictures and comments on the product I am interested in. After a thorough evaluation I purchased my swim suite. The material was not indicated on the product neither was it indicated in the reviews so I was unsure if I had a reasonable reason to return my purchase. My concern was that I already tried on the swim suite how would they recycle this product when considering hygienic dynamics? Nevertheless, Amazon accepted my return request and provided me with a full refund.

Although I am not fully aware of the impact of the business when implementing my product return but I can assume that Amazon took a loss because of the type of product I purchased was unable to be reused. The return process influenced my sense of product service and satisfaction in a positive way. The company gave me the customer service satisfaction like most Chic Fil A’s in the south, pleasant, polite, and knowledgeable. “Reverse logistics is about damage control and making the process as customer-friendly as possible (Cerny, n.d.).” (Wisner, 2017).

 

Reference

Wisner, J. D. (2017).  Operations management: A supply chain process approach . Retrieved from https://content.ashford.edu

Gary Yamauchi

6:339 Apr at 6:33

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WK5 DISCUSSION 2

 

Hello All,

 

Here is my post of for this week’s Discussion 2.

 

Reverse logistics or returns management is one of the costliest parts of running a business. Statistically, it has been estimated that up to 20% of all products are returned, which carries an additional cost of $1.50 for every $1.00 returned. For example, if a $100.00 item is sold and then returned, it costs the company an additional $150.00 (Wisner, 2017), which comes to a grand total of $250.00; a very steep loss, indeed.

 

Discuss the problems associated with reverse logistics or product returns.

Aside from the cost, there are several other more intangible considerations that factor into the return. For instance, did the employee who took the return handle the situation in a way the made the customer feel as if there was nothing wrong or guilty to feel about the return?

If it was a return with a cash payment, did customer receive the right amount of money?

If the merchandise was a high-ticket item and the payment was cash, is the customer requesting dollar bills other than the ones that were brought in. This may sound odd, but I had a situation where a customer bought a new car with cash on a Friday evening, then came back the next day and demanded to be paid in cash. We told her that all of the cash was dropped and that we couldn’t even open the safe until Monday, because of the timer and that the Business Manager had the keys that were also required to open the safe.

That was when she screamed out I don’t want the same bills, I want different ones. At that point, we realized that the cash she handed us could have been counterfeit. On Monday, we returned all of the cash that she handed us.

 

Consider a product that you have recently returned.

In Cambodia, if you buy something, you pretty much own it. This is a very different culture. I’ve only found a few stores that are willing to take anything back. Usually, the packaging must be intact. Once it is opened, its yours. They also really don’t care whether you keep your purchase or return it, as the concept of customer service is non-existent.

 

What was the impact on the business where you returned the product?

As the item was a small, computer peripheral, with a total value under $10.00 it didn’t impact the store in any way. The employee just looked at me like, why did you buy it in the first place? Duh?

 

How did the return process influence your sense of product service and satisfaction?

Living in a third world country is a very different experience, one that I’ve grown accustomed to over the last 10 years. Thus, there is very little that can actually surprise me. I will say that the one thing that surprised me when I first came here, was that the cell phone network that was being built up was already 3G, while every carrier like AT&T, Verizon, Sprint, etc. were just getting going. So, when I got there, I enjoyed 3G service long before it was even available throughout all of San Francisco. The reason for such oddities is that when a new market opens up, the get stocked with the latest products from the manufacturer. In this case it was 3G routers for cell carriers.

In essence, Cambodia, like many other 3rd world countries are where the US was 30-40 years ago in customer service. As the economies improve, with more education in business protocols and management techniques, customer service will increase. Its not if, but when.