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Sourcing and Procurement Tips for Returns and Reverse Logistics

By buildingmaterial | April 23, 2025

The Role of Reverse Logistics in Warehouse Efficiency

Returns, damaged goods, and reverse logistics aren’t just a cost center—they’re an opportunity to tighten your procurement strategy and improve warehouse KPIs.

Best Practices in Sourcing with Returns in Mind

Work with Return-Friendly Suppliers: Choose vendors that offer flexible return policies and clear RMA processes.

Negotiate Refund or Credit Terms: Aim for credit-back agreements to reinvest in future inventory.

Account for Return Rates: Use ERP analytics to track and forecast return trends and adjust procurement quantities accordingly.

Reverse Logistics Workflow Optimization

Dedicated Return Zones: Create physical zones for returned products to avoid clutter.

ERP Tagging & Scanning: Use your ERP software to tag returns with reason codes, condition, and vendor association.

Disposition Strategies: Know when to restock, refurbish, or scrap based on product type and condition.

Sustainability and Compliance in Reverse Logistics

Reduce landfill by working with recycling vendors.

Ensure compliance with regulations around hazardous building materials (e.g., adhesives, insulation chemicals).

Optimize your returns process with our ERP solution tailored to building materials. Reach out to us for a customized reverse logistics strategy.


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