Smarter Reverse Logistics Management: The Key to Building Customer Relationships And Strengthening Financial Performance

By Bill Pollock

The results of the 2011 Service Parts Logistics Benchmark Survey conducted on behalf of The Service Council™ by its "Official" Research Partner, Strategies For Growth^SM, depict a global marketplace that thrives on the importance of effective service parts management, with a strong focus on reverse logistics. The survey also confirms that nearly nine-out-of-10 respondents (88%) believe effective service parts logistics management is key to company financial performance, with an even greater percentage (93%) acknowledging its critical role in building customer relationships.

Respondents are also forthcoming with respect to the principal drivers that define the way in which they build and execute their reverse logistics initiatives. For example, approximately two-thirds of respondents cite the "need to enhance the overall customer experience" (66%) and the "need to reduce and/or contain costs" (65%) as going hand-in-hand as the top two market drivers. Other factors, such as the "need to reduce, or minimize, service parts inventory costs" are also cited by a majority of respondents (51%) as playing a critical role in influencing how the community ultimately deals with service parts and reverse logistics.