A large retailer has negotiated buyback contracts with several suppliers. The suppliers typically will need which of the following systems to effectively implement the contracts?

Question

Quizplus · Accepted Answer

For effective implementation of buyback contracts, suppliers need to have a well-developed reverse logistics system that can handle the returns of products from the retailer. This system should include processes for receiving and processing returned products, refurbishing or disposing of them as appropriate, and crediting the retailer's account for the returned merchandise. Point-of-sale tracking may be useful in monitoring sales, but it is not necessary for implementing buyback contracts. Monitoring the retailer's revenue is also not necessary for implementation, as the focus is on managing the returns process. Sales incentives to reward the retailer may be a part of the contract negotiation process, but they are not essential for implementation.

A Large Retailer Has Negotiated Buyback Contracts with Several Suppliers