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Channel-Free Reverse Logistics: Throwing the Returns Process for a Loop

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Carly Greenberg

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January 17, 2024

Reverse logistics is costly to retailers, but by giving it a technology makeover, Loop and Fillogic are transforming returns management into a profit maker.

In the world of retail and e-commerce, the customer experience doesn’t end at the point of sale. More than $816 billion worth of retail merchandise was returned in 2022, according to the National Retail Federation, making it an important area to focus on for retailers.

Returns and reverse logistics, though a natural part of the shopping journey, present a range of unique challenges for retailers due primarily to its associated complexities and costs. Inefficient returns processes and complex inventory management disrupt supply chains, resulting in delays and dissatisfied customers. The lack of visibility into return trends and processes makes it difficult for retailers to identify areas for improvement and make data-driven decisions. High costs associated with returns management impact the bottom line, reducing profitability.

However, reverse logistics is now getting a much-needed technology-forward makeover, thanks to the dynamic partnership between Fillogic and Loop Returns. This collaboration is poised to streamline and enhance the return process for brands and retailers, contributing to a circular, sustainable, and more profitable economy.

Pioneering Local Market Logistics

Fillogic, the leader in local market logistics, is transforming underutilized retail spaces into local logistics hubs. Their proprietary technology and operations transform retail centers and shopping malls into efficient, cost-effective, and sustainable middle-mile and reverse logistics platforms. The real innovation lies in their ability to optimize existing assets, such as stores, staff, and inventory.

Fillogic Hubs serve as a critical link for retailers, carriers, and mall owners, offering a centralized location for reverse logistics operations. The Hub staff takes on essential roles, including processing items, conducting quality assurance, and deciding whether products should be routed for resale, returned to vendors, or properly disposed of.

Fillogic’s technology provides a comprehensive view of returned products, tracking their journey from receipt through storage and re-fulfillment. This channel-free management of inventory allows for rapid, scalable growth, thanks to seamless integration with Fillogic’s nationwide logistics network.

Fillogic’s commitment to sustainable practices is not overlooked. They play an integral role in the reverse logistics infrastructure, promoting the recovery, resale, and sustainable recycling of products to establish a circular economy. By keeping valuable materials in circulation, reducing waste, and delivering financial benefits to their clients, Fillogic demonstrates their dedication to creating a greener and more profitable supply chain.

Revolutionizing Returns Management

Loop Returns, an automated returns management portal, stands as a champion of customer convenience and retailer sustainability. Their primary focus is making the returns and exchanges process more customer-centric while also being profitable and sustainable for retailers. Loop Returns excels in optimizing the return process and encourages exchanges, ultimately saving time and money for retailers at every step of the returns journey.

A Game-Changing Collaboration

The partnership between Fillogic and Loop Returns marks a pivotal moment in the evolution of reverse logistics. It will leverage the combination of Loop Returns front-end return management solution and Fillogic’s proprietary, state-of-the-art sorting, grading, and segmentation technology to help retailers and brands create a more circular, sustainable, and profitable returns process.

With this integration, customers can expect a host of benefits:

  • Enhanced Visibility
    Each return created in Loop automatically creates an RMA for Fillogic to have greater visibility into what returns are coming. Fillogic’s proprietary technology enables them to accept, process, ship, and track customer returns and return-to-vendor (RTVs). This seamless integration offers retailers unmatched visibility of shipment progress and real-time inventory tracking.
  • Faster Restocking
    Fillogic’s expertise in aggregating, grading, and intelligently sorting returned packages, results in a 200% faster restocking process at a 50% reduction in cost compared to traditional methods. This efficiency is made possible because Fillogic strategically positions its hubs closer to the end consumers, making the entire process quicker.
  • Improved Profit Margins
    Retailers partnering with Fillogic benefit from a remarkable 180% increase in full-price sales days, thanks to quick turns, providing an additional 25 days of full-price sales. This boost in profitability is a game-changer for brands and retailers. The integration also allows Fillogic to flag returns for further review in Loop enabling brands to have more control over when refunds are issued, reducing risk and revenue loss.
  • A Sustainable Approach
    Fillogic’s method of intercepting returns in the final and middle mile while performing on-site quality control/quality assurance work significantly reduces the miles a returned product travels. This not only reduces the need for packaging but also prolongs the use of materials and diverts fewer items to landfills. In 2022, Fillogic kept 18 tons of materials out of landfills and 65 million tons of carbon emissions out of the air, according to the 2022 Impact Report released by Closed Loop Partners.

A Circular & Sustainable Future for Reverse Logistics

The collaboration between Fillogic and Loop Returns signifies a significant step forward in revolutionizing reverse logistics, promoting greater visibility, sustainability, profitability, and a superior customer experience within the industry.

Brands and retailers can look forward to a future where the return process is not just efficient but also aligned with environmentally conscious practices. This technology-forward approach is transforming the way we think about reverse logistics, ensuring it becomes a win-win situation for both retailers and customers alike.

Retain more revenue with Loop today

With Loop, your brand can offer everything from refunds to direct exchanges to shopper incentives and more. Even better? These exchanges build your business.