Reverse Supply Chains

In this episode Tony Hines takes a look at the philosophy behind supply chains in our material world. We also look at the whole area of reverse supply chains with special guest Dr Regina Frei, Associate Professor of Supply Chain Management at Southampton University. We look at how some customers cost us more than others as well as how some suppliers are more costly to deal with than others and we have the usual news round up from round the globe.The growth of internet retail has caused an increasing problem for the retail sector of processing returns to minimise cost and the impact on their bottom line. According to KPMG returns can reduce profits by 30 per cent.  The average cost of returns is 10 per cent. Manufacturers and retailers are said to spend $100 billion on returns. In the UK alone retail returns are about £7 billion.  A single return costs about £10  but remember this is an average figure. Some returns cost more. When it comes to returning products you are effectively reversing the supply chain process moving goods back from consumers to suppliers. There are many reasons why people need to return goods. It may be damage to products, wrong item delivered, not fit for purpose or simply that the customer changed their mind. It will depend on the returns policy how each business deals with returns. Dr Regina Frei is our special guest who will discuss this with us today. You can also read some of Gina's research by following the links here:Product returns: a growing problem for business, society and environment in International Journal of Operations and Production Management: https://www.emerald.com/insight/content/doi/10.1108/IJOPM-02-2020-0083No such thing as free product returns in The Conversation: https://theconversation.com/the-hidden-costs-of-online-shopping-for-customers-and-retailers-109694Send us Fan MailSupport the show THANKS FOR LISTENING PLEASE SUPPORT THE SHOW You can support the podcast by following the link here. It makes a big difference and helps us make great content for you to listen to. Follow like and share the Chain Reaction Podcast with colleagues and friends on social media: Facebook, Twitter, LinkedIn.News about forthcoming programmes click hereSHAREPlease share the link with others so they can listen too https://chainreaction.buzzsprout.com/shareLET US KNOWIf you have any comments, suggestions or questions then just direct message on Linkedin or X (Twitter)REVIEW AND RATE If you like the show please rate and review it. Every vote helps.About Tony Hines and the Chain Reaction Podcast – All About Supply Chain AdvantageI have been researching and writing about supply chains for over 25 years. I wrote my first book on supply chain strategies in the early 2000s. The latest edition is published in 2024 available from Routledge, Amazon and all good book stores. Each week we have special episodes on particular topics relating to supply chains. We have a weekly news round up every Saturday at 12 noon. ...