A company would like to implement a strategic initiative of enhancing its reverse logistics process. Which of the following statements best describes the profitability impact of such a strategy?
A) More profits due to higher return rate of customers
B) More profits due to larger volume of returned products
C) Less profits due to increase in investment costs
D) Less profits due to negative impact on brand image

Question

Quizplus · Accepted Answer

Enhancing the reverse logistics process can result in a higher return rate of customers, which can lead to more profits. Additionally, a well-designed reverse logistics process can help reduce costs and increase efficiency, further contributing to profitability. Option B is not necessarily true as a larger volume of returned products may not always result in more profits, especially if the products cannot be resold. Option C may be true in the short term but a well-designed reverse logistics process can actually lead to cost savings in the long term. Option D is not true as an enhanced reverse logistics process can actually improve customer satisfaction and brand image.

A Company Would Like to Implement a Strategic Initiative of Enhancing