Tuesday, December 19, 2006

Entrepreneurs in reverse logistics

Cycleon is a Netherlands based third party reverse logistics provider. Founded by an MBA graduate from Insead, Cycleon serve consumer goods companies with mailable size products. It seems that they have quite coverage in Europe through different postal providers. Their business model provides an excellent fit for companies who cannot justify large investments in reverse logistics. They use postal carriers (not the express carriers and hence have the cost advantage) and let consumers drop the returned products to the postal office in prepaid boxes.

Moreover, the company takes into account the inherent need for information in processing returns and they provide data on condition, return reason, how much time spent in the return process etc... I believe the integration of returns from a number of countries by such a third party provider could substantially help firms plan their product returns accurately by reducing uncertainty.

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