7 benefits of using a 3PL provider for reverse logistics

1. Some 3PLs are already knowledgeable about reverse logistics

Some 3PLs offer returns management as part of larger logistics services, with other areas of expertise including transportation, warehousing, order fulfillment and e-commerce.

Using a 3PL that offers reverse logistics services avoids the need for company leaders to learn about the reverse logistics process and create a strategy for it, freeing them up to focus on other business topics.

2. A 3PL has established relationships with supply chain partners

A 3PL has already created business partnerships with retailers and carriers as well as others involved in the supply chain, so a company working with a 3PL won't have to spend time looking for the right business relationships.

A 3PL's experience with this can help improve collaboration across the supply chain and can be a particular advantage for companies that are just starting out, as their leaders are likely not as familiar with the marketplace.

3. A 3PL has already optimized its returns processes

Large 3PLs that offer reverse logistics services may handle returns for dozens or hundreds of clients, so the providers have often already streamlined their processes.

Some examples of the strategies 3PLs may put into place to make their returns operations as effective as possible include the following:

• Consolidating returns, which can help lower shipping costs.
• Optimizing routes to make the shipment of returns as efficient as possible.
• Scheduling batches of returns with suppliers and manufacturers.

When 3PLs operate as efficiently as possible, their customers benefit as well.

4. A 3PL can help its clients expand internationally

As a company grows, its leaders may decide to bring its operations to new countries. 3PLs with global operations will already possess an understanding of local business practices and partners in those areas, which can help their clients establish themselves more easily in a new area.

The 3PL will also be able to provide a central point of contact for supply chain management as the company expands to new countries.

5. A 3PL can help improve customer service

One of the advantages a 3PL can provide is increased insight for customers into a shipment location or refund.

A 3PL can provide a company's customers with access to integrated tracking portals, where customers can log in and view the status of their returned package. This access can help reduce customer frustration, as they'll gain more visibility into timing of their refund or the time when they'll receive a replacement item.

6. A 3PL can follow a company's returns guidelines

A 3PL can work with a company to determine the best returns processing practices for the company. Some options that a company may establish with a 3PL for processing returns include the following, depending on the condition of the returned item:

• Products are restocked and resold to customers.
• Products are refurbished and restocked for future sale.
• Products are stripped for parts.
• Products are donated.
• Products are recycled or destroyed.

7. A 3PL can give a company insight into returns

Returned items lead to significant costs for companies, so reducing returned items as much as possible is crucial.

A 3PL can provide clients with insight into returns and why they're happening, which can help the company reduce returns. 3PL employees can work with a company to establish returns categories, then send the company data on the amount of a certain type of return as well as other information.

A 3PL can also help resolve the causes of returns. For example, if manufacturing defects is a leading cause of returns, the 3PL can work with the manufacturer to solve the problem.

Paul Maplesden creates comprehensive guides on business, finance and technology topics, with expertise in supply chain and SaaS platforms.