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Reverse Logistics Solutions by 3PL Links

Reverse Logistics Solutions by 3PL Links

Reverse Logistics Solutions | Image Source:

Dealing with customer feedback is most businesses’ least favorite task. Today’s supply chain managers are primarily concerned with streamlining the movement of goods from suppliers to customers. Reverse logistics is in the same predicament as the product inflow into warehouses 20 years ago, when businesses were more concerned with the product outflow. Contrary to what its name might imply, reverse logistics really operates in the exact opposite manner by handling numerous consumer returns and, unless a better option exists, may even send them back to suppliers.

All businesses are concerned about reverse logistics, regardless of where they are in the supply chain. The first thing that comes to mind is the high number of returns that retailers have to deal with, particularly during certain times of the year, like just after the holiday season, but it goes beyond that. Since returns have an impact all the way down the supply chain, this is really just the tip of the iceberg.

You are welcome to get in touch with 3PL Links at any time for all of your logistics needs.

Some of our reverse logistics solutions to better manage your returns

The fundamental steps of a returns management process are the same regardless of the company. These are the main points:

Analyze the current situation:

What are the causes of return to your business? What is your current return policy? What process do you have in place to deal with them? What volume do you deal with annually? How do your customers rate your performance? How do you position yourself in relation to your competitors? Here are some questions that should allow you to establish your priorities in terms of managing returns.

Define your returns management strategy:

Analyze how effective returns management could help you lower expenses, enhance customer service, and even boost revenue. At this point, it is appropriate to assess some unique ideas, such as the option of either selling a product that no longer meets our quality standards on a secondary market rather than destroying it, or even disassembling the return into spare parts that can be used to make new products or sold as replacement parts. Once your goals have been established, you can create your returns policy in accordance with them.

Designing the Future Returns Management Process:

It is significant to remember that the returns management process starts long before the goods is returned. From the very beginning of the product development process, refunds should be taken into account.

Decide between outsourcing returns management or not:

Outsourcing this management will, of course, allow you to concentrate on your core competencies and avoid incurring the costs of acquiring this knowledge, or even profit from the cost reductions offered by the subcontractor’s knowledge. But one thing is certain: like every outsourcing choice, it ultimately comes down to evaluating the advantages and disadvantages and economically quantifying each.

Continuously reassess and improve the process:

Although this phase is present in every process but is frequently skipped, leaders are nonetheless responsible for it. As said so eloquently by the CEO of a major online art retailer: “Our strategy is to process returns promptly, while striving to keep them to a minimum.” The success of this business is most definitely not unrelated to this mindset.

Implementing best practices

Reverse Logistics Solutions by 3PL Links

Reverse Logistics Solutions | Image Source:

There are some standard procedures that should be followed while creating a new returns management process. First, depending on the nature of the goods and the purchasing/distribution network, it is frequently suitable to allow returns through a specialized center or call center. This allows for the very first diagnostic and helps to prevent illegal returns, such as those where the consumer has not completely grasped how the product works or where the return is prohibited by the company’s return policies because of the date of purchase or for any other reason.

As soon as the returns are received, you must make sure to follow them through every step of the processing procedure and in accordance with the kind of returns. It may be useful to centralize their processing if the volume processed is high. This is particularly true when vendors need a certain quantity of products before they’ll accept a return. A return request can be sent to the supplier, pick-up instructions for returns can be issued at the warehouse, and labels and other delivery documentation can be printed once the minimum volume of products held in a common area is reached.

From challenging issue to tactical advantage

All firms face numerous issues related to returns, but what better way to begin realizing the need for management improvement than by assessing what it costs you in terms of returns? Then, consider how you could take advantage of your input to boost sales or enhance customer experience. This is a question that some businesses have posed to themselves and have found satisfactory answers. Who knows, maybe you’ll be able to use this challenging issue as a tactical advantage as well.

Different Types of Logistics Companies: Which One Should You Choose?

Types of Logistics

Types of Logistics Companies | Image Source: Getty Images/iStockphoto

The many types of logistics companies were created with the goal of giving businesses more assurance and peace of mind so that their operations are effective, timely, and affordable.

Are you attempting to improve the efficiency of your business? If the response is yes, we advise outsourcing your work to one of the various kinds of logistics operators we will describe below.

You will learn how many different types of logistics companies there are, what they do, and which one is best for your business in this article. Set yourself at ease, and let’s get started.

What is a logistics company?

A company that handles order processing, distribution to customers, and storage operations is known as a logistics operator. To comply with the end user, this requires human, physical, and technological resources, as well as transportation and information systems.

Despite possible confusion, logistics companies provide more than only services. With the businesses they collaborate with, they become partners and take full ownership of the management, analysis, and execution of the supply system.

A number of different types of logistics companies are currently being hired by businesses, exporters, and importers for their core operations.

If a business intends to use this service, it must first consider which category of logistics companies best meets their requirements.

How many types of logistics companies are there?

There are companies who meet all logistics functions to reduce costs, enhance service, and remain competitive while adjusting to your company’s needs in order to meet the obstacles that businesses face every day.

There are five different categories of logistics professionals: 1pl, 2pl, 3pl, 4pl, and 5pl. We encourage you to learn more about them by visiting:


The Logistics World website states that first party logistics (1PL) companies are in charge of overseeing land logistics and freight transportation.

The most skilled companies can handle a variety of goods, including frozen, refrigerated, and dry cargo. Depending on the needs of the client, they may also manage various fleets, drivers, and amounts of transportation.


Second party logistics is the name of the logistics provider who is in charge of independent and sporadic services. They are specialized, as opposed to the 1PL, and only concentrate on one activity.

Its goal is to lower client or supplier expenses for increased capacity when needed, preventing an unnecessary expenditure.

Similar to the 1PL, its specialty enables the management of several transports, warehouses, and goods handling modalities.

3PL vs 4PL

Types of Logistics Companies | Image Source:


The third party logistics provides a wide range of services, among which are:

  • Inbound transport
  • The operation of distribution centers
  • Value added services
  • Stock control
  • Outbound transportation
  • Reverse logistics

The outsourced company now has a higher level of accountability because it provides both 1PL and 2PL services in addition to managing all associated operations to enhance supply chain efficiency.

The trends in the 3PL, unlike the other types of logistics companies, are:

  • Transport and storage associations
  • Shopping
  • Consulting
  • Information systems
  • Consolidation
  • Vehicle tracking system
  • Information systems without documents
  • Green logistics


In contrast to other types of logistics companies, the 4PL differentiates itself by taking ownership of the contracting company’s complete supply chain.

That is, it does not only refer to storage and transport, but also to:

  • Obtaining resources
  • Planning
  • Control
  • Coordination
  • Audit
  • Consultancy
  • Execution of the correct operational functioning

The core responsibility of 4PL operators is to maximize each department’s performance so that it can participate in the supply system.

Additionally, they are accountable for occasionally assisting 2PL and 3PL operators in achieving their objectives more swiftly and effectively.

To make sure that your work and targets are achieved, these logistics companies utilize various quality and efficiency methods, like the supply chain, for instance.

Understanding that the 4PL model outsources the logistics process, whilst the 3PL model outsources the functions related to that process, this is necessary to distinguish between the two.


Today, we are already discussing fifth party logistics, which, in contrast to other types of logistics companies, aims to handle many supply chains in order to scale to a size that enables them to have reduced costs. This is all possible because of emerging innovations.

This is due to the service’s emphasis on increased volumes, better service standards, and more environmental efficiencies in this stage, which helps to reduce the carbon footprint.

5PLs must have systems based on cutting-edge technologies like Blockchain and Big Data, which is a terrific advancement for the present day and can be accomplished with the aid of smart collaborations with 3PL and 4PL companies.

What should you take into account when choosing one of the types of logistics companies?

Logistics Operator

Types of Logistics Companies | Image Source:

When choosing between the types of logistics operators, you must keep in mind what type of service you need and what scope you want to achieve, because, as you have observed throughout this note, there are comprehensive and specialized logistics companies in a single service.

Once you have defined which logistics operator suits your needs, you should consider that it has:

  • Trained staff in handling your merchandise
  • Technology and equipment (inventory management software, cargo handling equipment, among others)
  • Communication and information
  • Security and financial support
  • Infrastructure (in storage areas, for example)
  • Insurance policy
  • Flexibility in service

You will already be acquainted with the many kinds of logistics companies and why hiring them is advantageous for your business if you have read this article.

At 3PL Links, we assist you with our round-the-clock logistical service; we will be in charge of all your logistics. Contact us now!

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