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8 Ways 3PL Transforms Reverse Logistics for a Circular Economy

Written by Madelie van Niekerk | Jun 14, 2023 3:18:59 PM

Are you navigating the waters of reverse logistics? Not sure how a 3PL (third-party logistics) partner can support your adoption of a circular economy?

You need to maintain an agile approach when operating in the technology industry. Products and services evolve so quickly. Failing to keep up with the latest developments, particularly around data security, can lead to severe financial repercussions via fines.

Ingram Micro Lifecycle isn't like your typical 3PL company. While we provide the commonly known services that these offer, we also provide additional value-added services.  

Below, we cover how a technology reverse logistics partner can support a circular economy for you while mitigating the risks from reverse logistics.

 

What is reverse logistics?

In straightforward terms, reverse logistics is the operation of moving a product from the end user back to the originating point from where it was dispatched or getting it to the property owner.

This could be a manufacturer, retailer, or even true owner, such as a business, financing company, or insurance company.  

Which industries need reverse logistics services?

These services can be offered to a wide range of markets and industries including:

This is not an exhaustive list. Any industry that creates or uses technology as part of its business-as-usual operations can benefit from reverse logistics.  

Technology is also ever-evolving and solutions must remain agile as the industry develops.  

The journey to technology circularity

A strong reverse logistics process supports the enablement of a circular economy. When getting the technology back to the true owner or originating source of the goods, there has to be a process for deciding what will happen to the item in question. Can it be repaired? Will it be resold?  

There are two different routes a reverse logistics partner can take with you to reach a circular economy for your technology. Although both have the same result, the influencing factor in which route is taken is the owner of the device.  

Products handled by the 3PL are owned by either consumers or enterprises.  

The consumer may be a customer of an enterprise that the 3PL partners with, but ownership of the device sits with the consumer.  

The enterprises include retailers, operators, insurers, and OEMs. They are the ultimate decision-makers for the outcome of the devices.  

Two routes to the same destination

One route puts the end user of the device at the forefront. They should benefit from a seamless experience, providing high satisfaction and retention.  

We’ve all been there – we know how frustrating it not having the technology we’ve become so reliant on. Communication should be timely and efficient, providing updates only when necessary and keeping the end user in the loop.

This provides the reassurance that their needs and wants are understood, showing that they’re important. They want an easy experience to get their desired outcome, not a battle at every step.  

3PL providers should strive for continuity, limiting the device downtime users experience. Speed is of the essence. The experience the partner has had in pulling apart devices and understanding them should ensure processes are swift.  

The second route is all about extending the lifecycle of the technology. Again, speed is key. Whether you want your devices to be redeployed, recycled or resold, a fast turnaround minimizes the associated risks. Risks of frustrations, data security, and losing money.  

Your partner should work quickly to get your devices to a near-new state so these can get re-used wherever they need to be. Data-bearing devices should be securely wiped so they remain compliant and mishandled data isn’t a threat to your brand integrity.

Unwanted stock sitting on your balance sheet should be processed and repackaged ready to recover maximum value via omnichannel sales.

8 ways a 3PL provider adds value

When searching for a reverse logistics partner to support your business, there are several additional services or features they can have that you should look out for.

These provide additional support and assurance to your business that will help you go the extra mile.  

1. Genuine, approved repairs

Check which accreditations the 3PL provider holds from OEMs (Original Equipment Manufacturers).

These provide access to original replacement parts and approved processes.

Where a device is beyond economical repair, parts harvesting supports the cost-effective remanufacturing of other similar devices.  

2. Increased accessibility

These processes provide a pool of high-grade devices, in an as-new condition, for you or the partner to redeploy or remarket.

This provides an accessible lower-cost option with a lower environmental impact for customers than the manufacture and purchase of new devices.

When supply chains face instability, this ensures a reliable supply of products.  

3. Data compliance

All data-bearing devices need to be securely wiped by the handler to industry-leading standards before processing, as well as being checked for FMI or alternative device blocks.

Software should be updated to ensure devices are up to date with the latest operating system security.  

4. Customization

Customers may have the option to request pre-configured devices. These devices are provided to a set list of requirements determined by the customer.

Requirements can include specific software and equipment, such as charging cables and earphones, that are kitted with the handset before deployment.

Brand logos, motifs, and specific wording can be inscribed onto devices for an extra layer of personalization.

This option can be great in saving you time if you’re deploying devices to staff members who are remote working, for example, or based in field offices.  

5. Inventory management

What warehousing does the 3PL provider have available for stock management? This enables customers to call off devices from a live inventory list.

For customers with hybrid and remote-working staff, devices can be dispatched directly. They can also receive device support out in the field.

6. Innovation through robotics and automation

Artificial intelligence has rapidly advanced in the last few years. How do the 3PL providers you’re researching use this latest technology?  

3PL providers have the opportunity to use AI for improved efficiencies when handling devices, maximizing output and cost savings.

Processes should incorporate AI to make automated decisions, removing subjectivity.  

7. Technical call center  

For consumers returning devices (for example, from trade-in programs or insurance claims), look to see if your 3PL provider has access to a technical call center.

Harnessing knowledgeable, friendly staff, they will guide and update your customers at each step. This makes them feel valued, increasing customer satisfaction and brand loyalty.  

8. Global scale  

What is the footprint and coverage of the reverse logistics provider? Will they be able to sustain upscaling of activities that flex with the growth of your business? Make sure that they have the manpower and capacity to support your business, or have the ability to mobilize quickly when needed.  

Ready to take your reverse logistics to the next level?

The additional services above all support your efforts in switching from a linear economy for your technology to a circular one. These also ensure efficiencies whilst maintaining a high customer satisfaction.  

Reach out to our team at Ingram Micro Lifecycle today using the orange button below, as our secret sauce is a mixture of all of the above. Our special blend puts your business needs at the forefront to ensure a seamless customer experience, with the speed, agility, and expertise to deliver market-leading services.  

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