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Reverse Logistics: Sending Things Back
There are a lot of shippers who are finding that the market for shipping freight back to the manufacturer. This industry is known as reverse logistics. To the average person, the idea of shipping freight back to the manufacturer is known as returns. This industry is growing in leaps in bounds and is becoming a normal component in the freight shipping and transport value chain.
The overall impact of the industry is growing in leaps and bounds to the sum of about $100 billion. There are significant amounts of third-party logistics (freight carriers) who are building thriving trucking companies from shipping freight back.
Specifically, these third party logistics (freight carriers) have found that the original manufacturer has a significant percentage of their sales dollars eaten up in shipping back returns or reverse logistics. This is a confounding figure and part of the answer as to why they offer reverse logistics applications that range widely. Just about every reverse logistics contracts are customized to fit the size and type of company that is shipping the freight back using third party logistics carriers. The third party logistics (freight carriers) companies do understand that the movement of return freight shipping can comprise a large part of their total shipping amounts.
There are a lot of these third party logistics (freight carriers) who see a lot of ways to make money with reverse logistics (the shipping of freight by carriers back to the original shipping requestors).
Some of the third party logistics (freight carriers) take complete control over the management of reverse logistics for damaged products by companies needing reverse logistics services by integrating the customer into the transportation networks for shipping services. The fact that third party logistics (freight carriers) companies do this allows for complete transparency in the shipping of returned goods or reverse logistics to the company originally shipping the products.
A company without a third party logistics (freight carriers) company may build an internal reverse logistics platform, but the costs of building an internal reverse logistics my exceed a million dollars.
There are other ways that companies make money on shipping returns back to the original shipping companies. For example, a company can accept a reverse logistics product without being hassled. The whole thought of reverse logistics, or the use of third party logistics (freight carriers) to ship freight back to the original shipper, can be time-consuming to the shipper or customer who is shipping the shipped product back to the original shipper by using a third party logistics (freight carrier).
The proliferating third party logistics (freight carriers) are expected to be shipping a lot of returned goods (reverse logistics) and are becoming an essential component in delivering solutions to reverse logistics costs and returns processing.
For companies who are shipping and have transport requirements has the overall goal of reducing costs by using reverse logistics and is providing third party logistics (freight carriers) companies a greater opportunity for more visibility in the transportation industry
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