During the course of its lifecycle, a product goes through many stages. The cycle starts with the initial idea of creation. By the end of the cycle, the product has surpassed all stages to achieve success. By studying the life cycle, companies get an idea of the product’s future sales. Plus, they can use it to address any issues that may arise later on. Companies and logistic services can also realize which products are in demand and which are lacking. On the other hand, reverse logistics helps in tracking waste management.
Let us read more to know how the life cycle of a product applies to Reverse logistics.
What is the product life cycle?
The product life cycle comprises of five stages:
- Development- This is the first stage of the product, where it is literally created. The Manufacturer develops the ideas and starts working on their execution. This includes the ideation, creation, manufacturing process, etc.
- Introduction- At this point, the product is first introduced in the market. To build the demand, the company launches an advertising campaign side by side.
- Growth- Next is the phase when the customers start accepting the product. Demand and supply both increase which is followed by sales. Products are sent to a 3pl distribution center from where they are shipped about.
- Maturity-Now the product sales start maturing. In order to stay in the game, companies must keep changing their strategies. They can reduce prices, add discounts and modify features to get the customers to notice.
- Decline- Last is the decline phase. The customers have lost interest in the product, and the sales are dipping. The company can introduce new changes to the product. However, if it does not work, it is best to withdraw the product.
How product life cycle applies to reverse logistics
Reverse logistics involves the process of the return of the product. Logistics and Distribution Services world over understand the importance of this stage. The product life cycle helps the companies understand the customer’s logistics plan so they can adapt accordingly. Some other ways in which both are related are as follows.
Streamlining the return requests generated
By knowing the background of a product, the logistics company can streamline the products. A product that is newly launched would have more demand. Plus, its chances of being returned would be less. 3pl logistics companies in the UK must arrange these products such that they are quickly shipped to meet the demand.
Assorting the returned products
In the reverse logistics process must be assorted such that they can be used in some other way later on. Or maybe the manufacturer could send the unused product for remanufacturing. This gives the logistics company an idea about the company. It also gets to know how the demand and supply of the product could increase or decrease. The company is then better prepared to deal with the event.
Deciding how to dispose and re-use
Supposing the product’s demand is saturated, the existing inventory needs to be utilized. Companies can see the demand and decide if they want to reuse the product. Or if they see no demand, they can dispose of the product altogether.
Find out how to manage the waste
Products that are returned might just go to waste. Companies need to figure out how to minimize the same. Even if they are disposing of the products, they have to do it so the environment may not be affected. This holds particularly for the products whose packaging cannot be used in any format.
To do so, the company can use the following methods:
- Repackaging- Same product can be repackaged and sold again
- Recycling- Products could be resold as second-hand goods.
- Remanufacturing- The product can be destroyed, and its parts used to create a new product
- Refurbished- New features can be added, and a new product can be brought further.
When a product is launched, everything seems to go well. However, after the decline, it is hard to dispose of the remnants. Find a logistics company near me to know how they use reverse logistics. They will take care of your products and ensure that you minimize waste. With a focused and dedicated logistics company at work, you can get your products reused with increased sales.