DHL Supply Chain, a subsidiary of Deutsche Post DHL Group, recently announced it inked a contract with ReverseLogix, a provider of end-to-end returns management systems (RMS) for both B2C and B2B organizations, to handle its e-commerce returns operations.
This decision comes at a time when DHL Supply Chain continues to see impressive growth, for its e-commerce business, which saw a 15 percent annual growth rate over the 2021 Peak Season, coupled with total national retail returns climbing 78 percent, to more than US$761 billion, according to data issued by the National Retail Federation. And the company said that this level of growth was commensurate with what it called substantial returns volume growth, from 2020 to 2021.
“Returns have rapidly evolved into a critical factor in satisfying today’s e-commerce customers prompting retailers to seek out partners like DHL Supply Chain to help implement and execute efficient, fast and cost-effective returns,” said Chris Blickhan, Vice President of Development, eCommerce, DHL Supply Chain, in a statement. “The selection of ReverseLogix positions DHL Supply Chain as a leader in establishing and operating e-commerce returns that further enables us to scale our portfolio to all retail players with maximum impact and minimum disruption.”
A DHL spokesperson told Logistics Management that the rationale for this new strategic partnership was driven by how DHL Supply Chain has been experiencing substantial growth in its e-commerce services from its customers.
“This inherently has driven more returns back into our fulfilment centers,” she said. “We are constantly looking for new and innovative ways to drive efficiencies and value, so our selection of Reverselogix provides us a best-in-class returns management system capability to further our accelerated digitalization agenda.”
As for the main benefits of this strategic partnership for DHL Supply Chain’s customers, the spokesperson explained that this partnership will allow its customers to benefit from DHL’s operational scale and expertise along with Reverse Logix’s systemic capabilities.
“This creates a more holistic solution we haven’t seen in the marketplace,” she said. “The increased visibility, processing efficiencies, and analytics will help our customers provide better overall service and increase loyalty with their end-consumer. We have always been a leader in eCommerce returns processing through our operational scale and expertise. As the pandemic created a ripple effect on eCommerce returns, we saw an opportunity to enhance our capabilities through an end-to-end solution to better support our customers’ needs.”
ReverseLogix CEO Gaurav Saran said in a statement that industry leaders like DHL Supply Chain recognize that a returns management system is an essential piece of the supply chain technology stack.
“Optimized returns services are now a requirement for any enterprise aiming to elevate omni-channel fulfilment,” said Sauran. “We are thrilled to support DHL’s visionary goals in a shifting market.”