Trust But Verify Reverse Logistics Providers

reverse logistics provider

The perception of the reverse logistics industry has shifted over the last several years.  Reverse logistics has gone from being viewed as an afterthought to a necessary evil to being recognized as a wealth of opportunity.  This shift has occurred as a result of several factors including: shortened product lifecycles, increased regulations and standards, consumer demand for corporate responsibility, and an increase in razor-thin margins.  Equally important in the industry’s makeover – companies have come to understand and to realize the benefits of reverse logistics such as a reduction in costs, a revenue stream, and as a way to enhance customer loyalty.

Unfortunately when choosing a solutions provider, many companies fall prey to the assumption that a certain level of compliance and data security are givens.  More often than not; however, the reality is that the service provider does not offer the level of compliance or data security assumed by the customer – and more often than not, the level that is offered by the service provider is inadequate.  When due diligence is left to assumptions companies pay dearly.

Specifically, faulty assumptions regarding certain levels of compliance and data security provided via a service provider leave the customer open to lawsuits and fines as a result of non-compliance and leave the door open for data leakage and theft.  The financial costs associated can be astronomical.  Moreover, the company and the brand can take a significant hit resulting in a decline or even loss of customers and customer loyalty.  In short, choosing a reverse logistics service provider that does not offer the compliance and data security necessary for your company can negate any gains realized as a result of your company’s reverse logistics strategy.

When selecting a reverse logistics service provider don’t make assumptions; don’t take the route of complacency.  Instead, ask questions, conduct due diligence, and make sure that the level of service provided goes beyond meeting your needs – the service provider should be able to exceed your company’s needs.

When selecting a reverse logistics service provider, look for a provider who has network and standards in place which ensure global success.  What does this look like?  Arrow Value Recovery is the gold standard.  Arrow provides uniform standards and quality controls.  Unlike some service providers who default to the lowest common denominator, Arrow providers customers with consistent levels of service –globally.  Moreover, Arrow ensures that every step of the recovery, data sanitization, and reuse and recycling process is not only transparent but is also 100 percent auditable.

Taking the time to thoroughly vet a reverse logistics service provider is essential.  Don’t make assumptions and don’t default to complacency.  Did you know that an estimated 70 percent of data breaches come from computers that are offline – typically computers that have been disposed of by the equipment owner? Don’t assume that your reverse logistics provider is offering your company the level of compliance and data security necessary – verify the facts.


This post was originally published on Electronics Purchasing Strategies.


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