The excitement got killed when a colleague made fun of the new opening posted by HR: Manager – Spares, the post read. My friend and colleague said – “Any Manager that is SPARE will be chosen for this role.” There went the desire to apply for the role. Who on earth would want to stick around being called SPAREs Manager! Not me! Little did I know then the intricacies of this role and the daily challenges one has to overcome. It’s a daunting Reverse Logistics task managing the Services Business predominantly due to the inadvertent challenges that are thrown in your face while attempting something new in India.
Mr. Supply Chain Manager (Mr. SCM) is always under pressure from Mr. CFO to reduce inventory levels while balancing the needs of Mr. Sales & Services Manager to reduce and fulfill client downtimes. So where must Mr. SCM draw the line?
Role of Reverse Logistics Solutions in India
Reverse Logistics helps Mr. Supply Chain Manager to keep both his clients happy. He now has the wherewithal to deliver parts to clients for service within agreed SLA’s while incorporating a process to get the faulty part back to the mother warehouse, thus helping Mr. CFO.
India, due to its large geography and complex regulatory environment, has always posed a monstrous challenge for the movement of spare parts across states and far-flung regions for Mr. SCM. So how can he set processes to work in such an unorganized sector?
The ANSWER lies in working with the right partner – one who offers specific solutions through set systems and processes.
Industry experts speak of the following benefits through reverse logistics: Reverse logistics done properly can decrease returns processing costs by 25%, increase productivity by at least 10%, increase asset realization by 2x to 4x, increase customer satisfaction by 100%, and increase profitability by 2% to 5 % apart from being compliant with waste management, especially e-waste regulations.
One of my recent experiences with a leading OEM for home networking products (Wi-Fi Routers to be precise) was less than pleasing once the router was declaring faulty by the call center executive. I was provided with the phone number of their service center in Andheri – East. Andheri – East! There goes my day. I had to go over to Saki Naka and give my faulty router and collect the good one. The exercise was simple but I dedicated an entire half-day to this process thus ensuring that my work suffered. This company could have easily offered this service: Field SWAP, where:
- A 3PL Logistics like Genex carries the fresh part to the client (me)
- Asks for the faulty part while handing over the good part
- Carries the part back to a repair center and if repairable does so and return it for managing warranty cases
- Faulty equipment scrapped as per company or e-waste guidelines
We at Genex LogiSolution cater to this large un-tapped need at the client’s place in the Indian market. We offer customized solutions that fit the need of every client without increasing their costs. Come tap into our network of warehouses and Logistics Centers spread around the country and an established distribution network (partly owned). Genex Logistics offers Warehousing & Distribution services across industries to Time-critical After Sales, Production Logistics, Finished Goods, Promotional material and reverse Logistics, etc.
Genex Logistics currently manages more than 500,000Sq Ft of space and is likely to add another 500,000 Sq Ft in the next few months time frame. The industry segment that we are catering to for warehousing is Apparel & Fashion, Retail & FMCG, Power Electronics, High-end office furniture, high-end automation spare parts, high-end cosmetics, drugs & pharma, Industrial batteries, wine & Liquors, Precision Engineering & Automotive.
FAQs of Reverse Logistics
Q: What is Reverse Logistics? Reverse Logistics involves the movement of goods from their final destination back to the manufacturer or a designated disposal point.
Q: Why is Reverse Logistics important in India? In India, Reverse Logistics presents an untapped opportunity to recover value from returns, promote sustainability, and open new revenue streams.
Q: What challenges does Reverse Logistics face in India? Challenges include inadequate infrastructure, regulatory complexities, and the need for consumer awareness.
Q: How can technology help in Reverse Logistics? Technology like IoT and data analytics can optimize processes, improving efficiency and reducing costs.
Q: What is the role of consumer engagement in Reverse Logistics? Consumer engagement is crucial in encouraging responsible product returns and recycling through incentives and awareness campaigns.
Q: How can businesses collaborate for successful Reverse Logistics? Businesses should form partnerships with logistics providers, recycling firms, and regulatory experts to streamline operations and ensure compliance.
Jaideep Lahiri is a Director with Genex LogiSolutions Pvt. Ltd., having a professional experience of over 21 years in various industry verticals – Process Control & Automation, Supply Chain, Information Technology, and Financial Services.