Reverse Logistics Practices

🚛 WHEN TRANSPORT LEARNS TO THINK GREEN I came across a concept today that stopped me — an autonomous hydrogen truck-trailer drone designed for long-distance freight. At first, it looked like another futuristic vehicle. But then it hit me: this isn’t just transport evolving — it’s intent evolving. For decades, we’ve designed logistics around speed and scale. Now we’re finally designing around sustainability. This new concept merges autonomy, aerodynamics, and hydrogen power to do something radical: → Eliminate carbon emissions in heavy freight. → Cut operational energy costs through intelligent routing. → Reduce highway congestion with coordinated drone convoys. It’s not just engineering — it’s a shift in philosophy. A move from moving faster to moving responsibly. We often talk about “green tech” as a feature — but the real shift happens when sustainability becomes the invisible infrastructure behind innovation. It’s not an addition to progress. It is progress. What’s needed now isn’t more invention — it’s integration. We need to: ✅ Build networks where clean energy and automation reinforce each other. ✅ Redefine “efficiency” to include environmental balance. ✅ Shift from carbon offsetting to carbon prevention at design level. Because the next breakthrough won’t come from faster engines — but from systems that make waste impossible by design. That’s when technology stops being an experiment in innovation… and becomes an expression of intelligence. So here’s the question I keep returning to — 👉 Will the next era of transport be powered by fuel — or by foresight? #Innovation #Sustainability #Hydrogen #AutonomousVehicles #GreenTech #Logistics #FutureThinking

Sustainability trends reshaping global logistics 🌍 Logistics is at the center of global sustainability. From emissions to resource use, supply chains influence the environmental impact of nearly every industry. As regulations tighten and expectations rise, logistics must evolve to support a low-carbon, circular economy. The latest DHL Logistics Trend Radar 7.0 highlights how sustainability is shaping the future of supply chains. The report underscores the urgency of decarbonization, circularity, and ESG-driven operations, pushing logistics to reduce its environmental footprint. Decarbonization remains a top priority. Supply chains account for 60% of global emissions, making low-carbon transport, sustainable fuels, and emissions tracking essential. Companies are now under growing pressure to disclose and reduce their carbon footprint. Circularity is becoming more embedded in logistics. Reverse logistics, recommerce, and circular packaging are shifting supply chains away from wasteful, linear models. As regulations around waste and product lifecycles evolve, logistics must facilitate more efficient resource flows. Sustainable urban logistics is also gaining traction. With more cities introducing zero-emission zones and last-mile regulations, logistics must adapt through electric fleets, cargo bikes, and optimized urban distribution models to minimize congestion and emissions. ESG-driven supply chains are setting new standards. From ethical sourcing to biodiversity protection, logistics plays a crucial role in ensuring more transparent, responsible, and resilient operations across industries. Sustainability is no longer an option—it’s an expectation. These trends reflect a shift in how businesses approach logistics. Companies that integrate sustainability into their supply chains today will not only meet compliance demands but also gain a competitive edge in a changing global economy. #sustainability #sustainable #business #esg #climatechange

I was honoured to write a column for Drapers about our new research with ZigZag Global on the reality of returns. Everyone in the industry knows returns are a big problem. In fact, they’re a £25 billion problem, with more than 20% of non-food items bought online ending up back with the retailer. That’s not news. But what has shifted is the level of friction customers now face. Paying for delivery and getting charged to return something has become a lot more common. Arguably, it’s reset consumer expectations. We wanted to go a step further and really understand it from the customer’s point of view. So that’s what we did. Alongside ZigZag, we returned 100 items from 100 of the UK’s biggest clothing retailers. For each return, we tracked everything – the packaging, the courier options, how long the refund took, the communication, the costs. We expected to see a few bumps in the process, but what stood out was just how wide the gap is between retailers we all know and trust. Some got it spot on, but others made it unnecessarily difficult. Here are three things that really stood out. ▶️ Only a handful of retailers offer totally free returns and that’s no accident Just 24 out of 100 retailers gave us what we’d call a fully free return. That meant no return fee, and either free delivery or a refund of the delivery charge. That number’s dropping quickly. It’s deliberate friction used to nudge customer behaviour and protect margins. Brands like H&M, PrettyLittleThing and Boohoo now charge modest fees. Others are quietly monitoring high-frequency returners, with some restricting orders altogether. It’s a sign of the growing shift towards personalised returns, where data is being used to segment and then tailor to different customer behaviours. The most profitable customers are rewarded and the least profitable experience more friction. ▶️ Marketplace sellers are hurting the customer experience This one surprised us. Retailers are losing control of the customer journey when it comes to marketplace orders. And it really showed in the returns process. We ran into everything from refund delays to policies that forced us to email customer service or phone in just to start a return. One return needed three separate calls, our own courier booking and then a failed pick-up. By the time we’d finally got it sorted, I couldn’t imagine anyone trying to shop with that brand again. ▶️ Refund speeds are testing customer patience The average time to get a refund was 7.3 days. Most shoppers expect it within five. Once you go past six days, frustration builds quickly. Hit day ten and customer loyalty is tested and call centre expenses escalate. With the cost of acquiring customers sky high, the returns process needs to become an effective differentiator for retailers’ most valued customers, marrying up data and tactics to form a competitive edge in this fast-paced environment. https://lnkd.in/eRd6qiQh

Working in D2C fashion? Then you already know the two kinds of returns we deal with: 1. The honest ones (wrong fit, wrong size) 2. The “used it, flaunted it, now returning it” kind Reverse logistics is a not a blessing especially for new brands trying to win trust, It’s a double-edged sword! Yes, some argue that a strict return policy filters out the wrong audience. But here’s the truth no one likes to admit: It also repels the right audience- the ones who are genuinely unsure about fit, comfort, or styling. And in fashion, where every brand’s sizing chart is basically a new size chart, what do you expect from customers? If your return policy makes people feel like they’re on trial, you’re not protecting the brand, you’re burning bridges with potential loyalists. There’s no perfect solution here, but we need to find better middle grounds clearer sizing support, flexible returns. Because trust isn’t built on one purchase. It’s built on what happens after the purchase. After having worked with 12+ lifestyle brands let me share some suggestions: 1. Smarter Sizing Support Use size recommendation tools (AI-based if possible) that learn from past customer purchases and returns. Shopify has multiple such apps. Add real customer photos & UGC reviews that mention fit; peer-led guidance always trumps size charts. 2. Tiered Return Policies a) Reward repeat/genuine customers with more flexibility. b) New customers may have a slightly stricter window or policy but with clear communication, not confusion. 3. Fraud Pattern Tagging Track & flag repeat offenders, people who return 90% of their orders with wear signs. Don’t punish everyone for a few. Razorpay shopflo GoKwik all these guys have Fraud flagging feature in-built in them, please utilize. 4. Post-Purchase Engagement Use WhatsApp or email nudges asking “Need help with your fit?” or “Would you like to exchange instead of return?” you’d be surprised how many just need support, not a refund. TRAIN your customer support to converse well and solve the sizing problem. Eg; Size 40 for a kurta isn't the body measurement but a garment measurement; state this clearly and explain what it means to your team and to your customers. Unit economics in D2C is hard, I do understand but basics is something we can follow before calling D2C a lost cause or a leaky channel. #ecommerceinsights #fashionstartups #reverselogistics #customerexperience #returnpolicy #D2CMarketing

I purchased a saree from an Instagram based seller, but when it arrived, it did not match the photo or description. I contacted them the very next day and asked to return and refund my money. Their response? "We don’t have any refund policy." So, I asked: “Where is your policy written?” And just like that within seconds they posted "NO RETURN / NO REFUND POLICY" on their page. This got me thinking.........Can businesses in Nepal just decide not to allow returns like this? So I looked into it. According to Section 14 of the Consumer Protection Act, 2075: If a consumer is dissatisfied, they have the right to return goods within 7 days and choose: A full refund, or An exchange for goods of equal value. No deductions, no extra charges, and no excuses allowed. The goods must be: Unaltered, unused, and not expired In case of sealed goods, returnable within 15 days if the seal is unbroken. Exceptions apply for perishable goods (like milk, meat, or fruit), used items, or those past expiry.

🔧 Refurbishment in SAP PM – A Real Story Not every spare part that fails is scrap. Some deserve a second life. That’s where Refurbishment in SAP comes in. How it works in SAP Every material can exist in 3 partial stocks: 🆕 New 🔁 Refurbished ❌ Defective Each stock carries its own valuation price. And SAP tracks them seamlessly through Refurbishment Orders. A Real-Time Example At Plant AKSD (Delhi), a pump motor fails. Instead of throwing it away, the team: 1️⃣ Puts the defective motor into stock (valuated as defective). 2️⃣ Creates a Refurbishment Order. 3️⃣ Withdraws the motor, sends it to internal workshop. 4️⃣ The maintenance team rewinds the motor. 5️⃣ Returns it to stock — this time as refurbished. Now the same motor is back in the system, ready to run again — at a fraction of the cost of a new one. Why it matters ✅ Saves procurement costs. ✅ Reduces waste. ✅ Keeps critical spares available when supply chains are tight. And yes, SAP even supports external refurbishment if you send parts out to vendors. 🔥 Takeaway: Refurbishment isn’t just maintenance. It’s sustainability + cost control — powered by SAP PM. 👉 Question for you: Do you think companies underutilize refurbishment because they don’t fully know how to set it up in SAP?

What allowed my company to grow so fast is that we got really, really good at overcoming customers objections over the phone. We sell laptop kits priced upwards of $10,000 and customers would tell us they wouldn't buy until they "saw it work" and wanted an onsite demo. We couldn't do that, it would never scale. The customer didn't really want to see it work. They wanted to know for certain that it *would* work when spending that much money. The idea to overcame this came from my first (and only at the time!) sales person, William R. Ward. One of the key ideas he introduced was giving the customers a 30-Day Money Back Guarantee. This essentially gave them a demo to use for 30 days and hook up to as much equipment as they wanted. Between that, customer references, and a pile of YouTube videos showing the product in action we could now over come a lot of the sales objection. But a new problem emerged -- All our competitors started to do it as well. All of the sudden we found it wasn't that big of a deal to customers any since everyone offered it.... so we adapt and we change. Customers can now get a 60-day return policy on all our kits but now must do 2 things: Complete the online training and call into tech support at least once. They can still return for any reason, or even swap to a different brand or product. While we just announced this recently, we've been running it this way over the last several months and the results have been better than we hoped -- Only 2 returns by clients, and even better, the clients that did onboard have been much more engaging to learn the product.

𝗧𝗵𝗲 𝗦𝗺𝗮𝗿𝘁 𝗟𝗼𝗼𝗽 𝗶𝗻 𝗔𝗰𝘁𝗶𝗼𝗻 — 𝗙𝗿𝗼𝗺 𝗟𝗶𝗻𝗲𝗮𝗿 𝗪𝗮𝘀𝘁𝗲 𝘁𝗼 𝗟𝗶𝘃𝗶𝗻𝗴 𝗦𝘆𝘀𝘁𝗲𝗺𝘀 Reverse logistics has always been linear: a product is used, returned, and discarded. Reverse Logistics 4.0 transforms that straight line into a living loop — where materials, data, and value continuously circulate. 1. 𝗦𝗺𝗮𝗿𝘁 𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻 – Returns are no longer anonymous. Smart IDs and embedded sensors reveal product condition, location, and residual value the moment they’re scanned. → The loop starts with insight. 2. 𝗦𝗺𝗮𝗿𝘁 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴 – Instead of static sorting, adaptive analytics classify returns by recovery potential — what’s reusable, what’s repairable, what should be reclaimed. → Each decision optimizes for maximum value. 3. 𝗦𝗺𝗮𝗿𝘁 𝗥𝗲𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 – Digital twins and simulation models determine the most efficient reuse path — repair, repurpose, or redesign — before any physical work begins. → Machines no longer fix parts; they reimagine them. 4. 𝗦𝗺𝗮𝗿𝘁 𝗥𝗲𝗱𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 – Integrated platforms balance supply and demand across the secondary market — moving refurbished goods where they’ll generate the highest return. → Reverse logistics becomes an engine of new revenue, not just return management. 5. 𝗦𝗺𝗮𝗿𝘁 𝗗𝗶𝘀𝗽𝗼𝘀𝗮𝗹 – Even waste becomes data. AI models predict landfill impact and redirect materials to recycling streams before they’re lost. → Sustainability is designed into the exit, not patched on afterward. 𝗧𝗵𝗲 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 𝗕𝗲𝗵𝗶𝗻𝗱 𝗥𝗲𝘃𝗲𝗿𝘀𝗲 𝗟𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀 𝟰.𝟬 At its core, the Reverse Logistics 4.0 ecosystem operates on three principles: 𝗩𝗶𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 → 𝗞𝗻𝗼𝘄𝗶𝗻𝗴 𝘄𝗵𝗮𝘁’𝘀 𝗰𝗼𝗺𝗶𝗻𝗴 𝗯𝗮𝗰𝗸. Real-time condition data eliminates guesswork — every return arrives with a story, not a surprise. 𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆 → 𝗔𝗰𝘁𝗶𝗻𝗴 𝗯𝗲𝗳𝗼𝗿𝗲 𝘃𝗮𝗹𝘂𝗲 𝗱𝗲𝗰𝗮𝘆𝘀. Predictive recovery and digital coordination cut idle time between return, repair, and resale. 𝗩𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 → 𝗘𝗻𝘀𝘂𝗿𝗶𝗻𝗴 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗺𝗮𝗸𝗲𝘀 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝘀𝗲𝗻𝘀𝗲. Smart remanufacturing and resale channels prove that green can also be profitable. These principles create a self-learning system — one that treats returns as assets, not liabilities. 𝗧𝗵𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗣𝗮𝘆𝗼𝗳𝗳 When intelligence flows in both directions from factory to field and back again supply chains stop being reactive. They become regenerative. Reverse Logistics 4.0 isn’t a process improvement; it’s a mindset upgrade for circular industry. Ref: https://lnkd.in/df4NtCj2

Happy returns season! Return rates have been rising for the past ten years and are expected to top 35% this year. This is a massive cost to your brand, how can you reduce them? First the most popular advice going around right now is how to make returns harder.  -Charge a restocking fee -Keep a small returns window -Make them jump through hoops to force an exchange Do not do this. This is what my grandfather called being penny wise and pound foolish. Trying to save some money with combative customer service is only going to hurt you. 1. It doesn’t turn people away from returning, it makes them dig in   2. You will be remembered in their minds as an enemy making a stressful time harder 3. Paying a restocking fee on a gift you didn’t want is going to appear, at best, as greedy. This is a great way to obliterate future sales. What should you do? Make it as easy as possible. Counterintuitive but here is why: Someone looking to scam you is going to do it anyway. You aren’t deterring those people by making it harder. But, making it easier will create a sense of camaraderie and good associations, which you will benefit from down the line when you DO have something this person wants. Retention is notably difficult and one of the better ways to achieve it is to be known as a “good” brand. It is one of the few ways to create real loyalty in a product that isn’t addictive or one-of-one unique. It also makes people want to do you a favor. This is the more important part. If you lean in first, you can then: -Ask for feedback directly -Email more often -Get a better social following -Get better word of mouth This matters because it will help your actual problem, year round return rates. Gift giving season has high returns because it isn’t the user who is shopping. But high seasonal returns are hurting you because you also have high returns year round. To combat that you need to know what the problems are and the best way to get that is by having a good enough relationship with the customers so that they will tell you to your face. You have to give to get and to be able to afford that giving you need to have a year of profits that isn’t tanked by a month of high returns. TLDR: Short term: be super easy to deal with, build up your relationships Long term: fix the root issue (bad web UX, weird sizing, unclear use case etc) #ecommerce #retail #profitability

As my intention to share knowledge with accurate technical data that is a correction for my last post about the refurbishment cycle. 🔄 Bringing Assets Back to Life: The Refurbishment Order Cycle (PM04) in SAP S/4HANA EAM The Refurbishment Order manages the entire process of repairing rotatable spare parts, tracking costs meticulously, and ensuring their quality and availability for future operations. The Refurbishment Order Cycle (PM04) * Faulty Part Removal: A damaged component (e.g., a pump, motor, or valve) is identified, replaced by a good spare part from the warehouse, and physically removed from the Functional Location or Equipment. * Goods Receipt (to Stock): The removed faulty part is booked into inventory (storage location for "Damaged/Defective" stock). This triggers the creation of the Refurbishment Order (PM04). * Refurbishment Order Processing: The PM04 order is planned. This involves defining the repair operations, assigning the internal Work Center, reserving necessary spare parts (low-value materials like seals, oil) required for the repair, and releasing the order. * Execution & Cost Collection: Workshop technicians execute the repair. Time confirmations are recorded for labor, and goods issues are posted for the consumable spare parts used during the refurbishment process. All these costs accumulate on the PM04 order. * Technical Completion (TECO): Once the repair is physically complete, the order is technically closed. * Goods Receipt (from Order): The refurbished part is received back into inventory, moving it from "Defective" stock to "Usable/Available" stock. This goods movement debits the refurbished material's inventory value and credits the PM04 order with this value, effectively settling the cost of repair against the finished goods. When to Use Refurbishment order ✅ Use When: * Cost Transparency is Required: PM04 is the only order type that collects all internal repair costs (labor, overhead, materials) and uses them to determine the actual cost of the refurbished spare part. This is crucial for accurate inventory valuation. * Rotatable Spares are Used: It is essential for managing serialized, high-value components (e.g., engines, gearboxes) that cycle between use, removal, repair, and restock. * Internal Workshop Operations: The repair work is conducted by your own employees in a designated workshop. ❌ Do Not Use When: * Asset is Repaired In Situ: For standard repairs performed on the equipment while it is installed, use a PM01 Corrective Order. * Low-Value, Disposable Parts: If the cost to track and repair the part exceeds its replacement value, simply scrap the faulty item and use a PM01 or PM02 order for replacement. The Refurbishment Order is a vital tool for ensuring the economic viability of repairing complex assets and for maintaining a healthy, high-quality inventory of critical spares. #SAPS4HANA #EAM #Refurbishment #PM04 #RotableSpares #InventoryManagement #AssetManagement