Integrating Reverse Logistics with Wireless Technology

Reverse Logistics Magazine, Mar/Apr 2008

In today’s competitive marketplace, it’s not enough to simply offer reverse logistics as a value-add to already-existing warehouse services. In fact, one of the most significant mistakes a company can make with regards to reverse logistics is to consider the process only as an afterthought, or assume that if the right components are in place, the desired result will “magically” happen. Nothing could be farther from the truth, but a balanced relationship between technology and forethought can propel any company offering reverse logistics to the top of its industry.

One of the best ways to streamline any reverse logistics operation is by employing wireless technology. Radio frequency identification technology (RF) is the latest and most advanced wireless application, particularly when it’s used in conjunction with a sophisticated warehouse management system (WMS). The initial investment in wireless technology, along with any necessary upgrades to your company’s WMS, will pay off quickly in the competitive advantage these features provide. After all, who would you rather hire: a vendor who has the foresight to take your company to the next level, or one that is barely keeping up with the latest technology?

There are several benefits of investing in wireless technology to employ reverse logistics. First, cost efficiency. Think of the man-hours currently being used to hand-inspect each item that comes back to your warehouse. That time and energy translates into dollars that could be better used in other parts of your company’s operational system, or eliminated altogether to cut down on the bottom line. Second, by utilizing wireless technology, human error is taken out of the equation. The returned item will more likely be sent to the correct department or division, eliminating the backtracking that could result from misplaced merchandise. Again, this saves money and manpower. Third, wireless transactions leave a complete paper trail that can be necessary for audits and for administering credits to customers. And lastly, but just as importantly, telling potential customers that your warehouse uses wireless technology is an impressive statement. Not only will new business prospects know that your company will be a partner in ensuring its efficiency with reverse logistics, but they will also understand your commitment to exploring and investing in advanced technologies. That’s a competitive edge that speaks louder than any sales pitch.

Once the decision is made to join the wireless technology wave, there are a few features your company should look for. As mentioned earlier, RF is an invaluable tool in maximizing efficiency and reducing warehouse errors. Beyond bar-code scanners, advanced warehouse management systems integrate voice-directed RF as part of the solution. The advantages of voice-directed technology are tremendous. First, the technology allows for hands-free communication with the system, allowing the worker to focus entirely on his or her task. Also, working hands-free improves safety by eliminating the juggling act that happens when an employee is carrying around a receiver or paperwork and begins handling merchandise. In addition, the learning curve involving voice-operated technology has been shown to be shorter; for most people, it’s a more intuitive method of communication.

Beyond voice-directed RF, inventory visibility is another feature you’ll want to look for. Depending on the type of reverse logistics being managed at your warehouse, your business may need total inventory visibility, from the moment the product arrives at the warehouse until a decision is made as to whether it will be refurbished, resold or disposed of. Merchandise typically spends much more time in the warehouse once it’s returned than it does before it leaves the distribution facility, so for cost and space reasons, it is essential that your company’s tracking system be up-to-date to eliminate any delays in finding merchandise once it arrives at your warehouse.

In addition to standard merchandise returns, a major stressor on a reverse logistics system is in the case of a product recall. Recalls make headlines, but what’s rarely considered are the logistics behind routing thousands or millions of units of a product from around the country to one location. And once they arrive at that location, they must be catalogued and addressed. Efficiency, organization and technology must all come together quickly when consumer safety is in question. Once a company has decided to issue a recall, technology takes over. Advanced warehousing systems that have invested in wireless technology have the edge when time is of the essence.

More and more companies realize it is imperative to have a handle on the latest technology to manage their oftentimes complex reverse logistics process. Dealing with returns and recalls after the fact is a surefire method to get behind the curve. Smart warehouse providers take advantage of advanced wireless tools like bar code scanning and voice-directed RF to manage logistics and inventory control. The right combination of technology and planning will improve the bottom line and guarantee a streamlined approach to reverse logistics.

About Joe Caston and Cadre Technologies

Chief Executive Officer and President Joe Caston is an executive leader with 22 years of experience in sales management, finance and general management in the data networking, software and telecommunications industries. Cadre Technologies is the leading provider of supply-chain management software for the warehouse, fulfillment, logistics and manufacturing industries. Cadre’s software packages offer versatile, on-demand, real-time information that streamlines the fulfillment operation, making the process more flexible, productive and profitable. For more information, visit Cadre’s Web site at www.cadretech.com or call 866-252-2373.

Sidebar Warehouse workers use a headset with a microphone and a speaker connected to a holster-supported mobile computer on their belt. The benefit is that the worker’s hands and eyes are completely focused on performing the desired task, not on typing or transmitting information. Workers connect in real-time to the company’s main database, and can verbally communicate with the host application to confirm when a return has been processed and receive another assignment. In addition, they can switch between methods to use the headset, a keyboard or scanner.