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Relaxed return policies create a competitive advantage for retailers but can wreak havoc on reverse logistics. Each year, consumers return hundreds of billions of dollars in merchandise, most of which can’t go back on the shelf due to diminished item condition, damaged packaging, or product obsolescence.
No matter the reason, that’s a significant amount of idle inventory taking up backroom or warehouse space. In today’s intensely competitive retail environment, this can translate to profit loss, heightening the importance of maximizing efficiency and return across all areas of the supply chain.
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