Reverse is the key element of supply chain management where customers return their products via suppliers and vendors to the producer and manufacturer. It comprises of various activities and processes like resale, recycling, refurbishment, and return starting from the customers and making its way backward to the manufacturer. Today, we’ll discuss Walmart reverse logistics; its definition, elements, and steps involved in the process.
Some of the key statistical facts about Walmart are as follows;
- Worth of Walmart’s inventory comprises 32 million US dollars
- The retail brand is operating its business in over 70 countries across the world
- The company has a network of more than 11000 retail stores across the globe
Walmart realized the impact of its return and environmentally friendly policy on its inventories. It started increasing significantly relevant to the sales growth; because the returned goods were taking up a lot of space.
What is Walmart Reverse Logistics?
Walmart reverse logistics comprises of movement of products and goods from customers to the company’s warehouse and inventory. It is completely opposite to the supply chain process of the company, where products and goods move backward. According to an estimate, customers returned approximately 16.6% of the products, and it decreased the sales by 761 billion US dollars in 2021 of companies.
Process of Walmart Reverse Logistics
Walmart successfully implements the reverse logistical process, and it helps the company to convert mass failure of companies into a huge win. Some of the main steps involved in Walmart reverse logistics process are as follows;
Easy Online Returns
Walmart has made the return process much simpler and easier for customers whether they’re online or in-store. It comprises a few simple steps, You should log in to your account and report the items that you want to return for the material reasons that causing you to do so. Pack the returned item, write down the label on the package, and ship it to the company. You could credit your account however you like.
In-store Items Returns
If you don’t feel comfortable with the shipment method of your returned package and labeling, then you could return the package (depending on its size and what it is) and take it to the store. You should hand over the returned item to the Walmart employee or associate in the nearby retail store of the company. In-store returning is a smart method because people need to buy new things when they are returning the item.
Returns to Marketplace Items
Walmart follows the unique idea after receiving the returned item and uses it to the company’s advantage. For instance, the company accepts the return on its behalf with the customer’s complaint along with the sale of shipment fee that the company has spent on it. They have the option to return the item to the company and they would send it back to the inventory as a part of routine return management activities. It is great for the involved sellers and customers.
The key element of Walmart’s strategy is to decrease the resistance in the return process and make the return process as simple and easier as purchasing. This is because some customers would return the items regardless of your product or action. Instead, you can use it to your business advantage by offering excellent customer service and winning the loyalty of customers.
Walmart has recently launched the refurbishment plan and it is available online and some of the stores of the company. The company thoroughly cleans, inspects, and tests all the refurbished, used, or returned items and then offers them for sale; with the additional feature of a 90-day free return.
However, this program helps the company to launch further budget-friendly products. We are living in a time when customers are finding ways to save money. Refurbished products have become increasingly popular among customers because it allows them to pay low cost without losing the quality.
Impact of Walmart RL Strategy
Walmart has planned the reverse logistical process and it helps the company to forecast the unexpected costs. The company recovers the product cost by safely returning it to the warehouse for further readjustment and making it ready for sale.
High Customer Retention
Customers would love to shop from such retail stores that have got easy return policy and don’t make a fuss about it while returning. It helps the company to increase the customer satisfaction level and retention rate. For instance, you can easily sell the products to existing customers, or sell them to new ones.
When Walmart sells refurbished products after repairing and fixing defective parts, it helps the company to increase the profitability level and decrease the losses. Instead of piling up the stock, the company offers refurbished products at the discounted price.
Conclusion: Walmart Reverse Logistics
After an in-depth study of Walmart Reverse Logistics; we have realized that Walmart is the world’s leading chain retail company with a great reverse logistical process. If you are learning about the reverse logistical process of Walmart, then you should keep in mind the abovementioned elements and steps.
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