Data analytics offers a lifeline for companies struggling with returns
· Source: scmr.com
In short
The article highlights the significant challenge of retail returns, costing U.S. retailers $890 billion in 2024 and consuming up to 65% of a product's value in handling costs. It advocates for the use of advanced data analytics to identify and address root causes of returns, including product quality, packaging, supply chain execution, and waste, instead of relying on short-term policies like 'keep it' or returnless returns. The article provides strategic insights on how retail supply chains can leverage end-to-end data collection and analysis to reduce return volumes, improve reverse logistics, and protect margins.
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In the issue of week 51, 2025: Agentic AI and Orchestration Drive 67% Supply Chain Cost Cuts
Tags: returns, reverse logistics, data analytics, supply chain, packaging, product quality