today often don't consider reverse logistics when they plan their sales and operations strategies, he says, but they should: "If you're not including reverse logistics in your supply-chain strategy, you're cutting your supply chain off short."International Reverse LogisticsWhether goods and materials are being returned for repair, refurbishing, recycling, or resale, reverse logistics has its own unique considerations. And when companies need to manage returns across international borders, reverse logistics becomes an even more complex process. That complexity--not to mention the cost of freight, which often outweighs the benefits of taking the item back--discourages many companies from bothering with international returns, says Kevin Sheehan, president of Dallas, Texas-based Processors Unlimited. His company, which recently was acquired by USF Logistics, manages reverse logistics at 45 processing centers nationwide. Yet sometimes there are compelling reasons to become involved in reverse logistics internationally. In some instances, a returned product can be sold to recover some of the costs incurred, says Dale Rogers, professor of supply chain management at the University of Nevada-Reno. "If you can recover some asset value out of the refurbished product above the cost of transportation, it may make sense to ship it outside the country," he says. And if a company imports items into the United States and they are returned by the end customer unused, he adds, it may be possible to resell them in a third country and claim a refund on the original import duties under duty-drawback regulations. There are many other factors that affect a company's decision to handle returns internationally, including customer goodwill, the desire to keep name-brand products out of secondary sales channels, and environmental concerns. Here's a look at why three shippers made that decision and how they manage international returns.Witco Corp., a global manufa...
