REVERSE LOGISTICS data and rules along with supply chain data – from transportation, piece tracking, machine and IoT, for instance – to then natively automate and trigger processes. “These technologies can support the development of more tailored and customer-centric returns products and offerings,” he says. Making sense of the data is hampered by skills shortages. “There is the task of building a skilled team capable of extracting actionable insights from complex data sets,” says Hampson. “Organizational resistance to change and the need to demonstrate the long-term value of these investments further complicate the transition.” UPS supply chain solutions UK country manager James McLean thinks the industry needs to work together. “Overcoming these challenges requires collaboration with the industry, investment in skills development, and regulators,” he comments. UPS is plowing money into new technologies to automate capabilities in returns logistics, including investing in new providers. “Last year, we acquired Happy Returns, a full-scale reverse logistics service, powered by smart technology,” McLean adds. THE TYPICAL SUPPLY CHAIN FOR POSTS MAY HAVE MYRIAD DISCONNECTED SYSTEMS” Mark Briganti, Accenture Briganti believes more companies will follow the partnership approach, such as the Happy Returns deal or DHL’s partnership with ReverseLogix. “There is certainly a skills and talent challenge,” he explains. “Partnership models may make more sense in the short run to accelerate the opportunities in this space and use inorganic talent to deliver new services.” BELOW: Technology developments and the rise of AI will continue to shape the reverse logistics landscape Ignoring the opportunity is not an option BIG DATA IS NOT MERELY A TOOL FOR OPERATIONAL EFFICIENCY, BUT A STRATEGY FOR ENDURING BRAND VALUE” Jerrad Hampson, Liberty Jai Certainly, the one thing that postal and logistics operators can’t afford to do is sit and wait. The impact of big data and analytics in reverse logistics is exciting, especially when you add the impact of AI and machine learning – the full consequences of which will be huge, according to Robinson. “We’re moving in steps, so from non-digital to digital, then from digital to a configured, rules-based intelligence, and then AI and machine learning enable you to scale up the variables you can take into account,” he says. “They can model the outcomes in advance and understand what changes could be made and how that drives value. They become self-optimizing systems.” Hampson believes there are big wins to be had. “For those committed to this evolution, the rewards are substantial, offering a pathway to operational excellence and superior customer engagement. The benefits of embracing this approach extend beyond operational efficiencies to include substantial cost savings, enhanced customer loyalty and a stronger competitive position. Data’s strategic value cannot be overstated; in logistics 2024 and beyond, it’s the cornerstone of innovation and growth.” Predictive analytics can help retailers understand return patterns and identify potential fraud SIMPLIFYING RETURNS WITH AI Driving efficiencies in reverse logistics requires maximized use of returns data. This starts with the customer and getting the right information at the very beginning of the process. Stamp Free’s disruptive technology addresses the fundamental flaws in the current returns model, where consumers often grapple with inconvenient return processes, typically offered free of charge. The paradigm is shifting toward retailers charging for returns, acknowledging the need for a more sustainable approach. However, the key to retaining consumer loyalty during this transition lies in providing a seamlessly convenient returns experience. Stamp Free says that its AI-enabled solution simplifies the returns process and makes it accessible to everyone – all that is needed is a smartphone and a pen. With a user-friendly interface and available via a carrier app or Stamp Free’s WhatsApp-enabled platform, returning items is reportedly effortless for customers, and carriers and retailers receive vital data as early as possible. Stamp Free can identify customers and capture comprehensive return-related data. By creating a closed-loop returns process, the company facilitates the correlation of SKU, purchase history and customer information. This holistic approach optimizes operational efficiency and customer satisfaction. Furthermore, Stamp Free supports the use of next-generation lockers, ensuring that customers’ nearest drop-off points are conveniently accessible. Whether for large-scale retailers or individual C2C shippers, the demand for a frictionless returns process remains consistent. Stamp Free believes it meets this crucial need by offering a user-centric approach that prioritizes simplicity for the customer and data-rich efficiency for carriers. By eliminating the hurdles associated with traditional returns methods, Stamp Free makes it easier for customers to navigate the returns process, thereby fostering trust and loyalty. 36 www.ParcelandPostalTechnologyInternational.com March 2024