With the increase in demand for clean and healthy drinking water, the bottled water industry is expected to reach USD 285.83 bn by 2027. This has forced water delivery businesses to adopt a sustainable business model to survive in the market.
It is where reverse logistics for managing an empty water bottle enters the frame. The global reverse logistics market size is expected to reach US$ 858.8 Billion by 2028, as per a research report by IMARC Group, exhibiting a growth rate (CAGR) of 5.5% during 2023-2028.
Reverse logistics in the water delivery business is the movement of the empty water bottle from the end user i.e. consumer to the distributor or manufacturer which can be tracked and managed by an integrated water delivery system.
In this blog, we’ll discuss the importance of reverse logistics in the water delivery business.
Boosts the net profit margin
Reverse logistics in the water delivery business can be a time-consuming and tedious task and even add up to costs. The addition of extra operational costs can directly impact the net profit margin and the ROI of the business.
Automating reverse logistics streamlines empty bottle management and improves the efficiency of the business which adds up to the net profit margin. Automated reverse logistics makes the process smooth and doesn’t require extensive labour, reducing labour costs. Increased efficiency and reduced labour costs contribute to reducing the overall operational costs for reverse logistics which later adds to the net profit margin and ROI.
Improves customer retention
Smooth reverse logistics and transparency in the process increase customer satisfaction scores and retention rates. The reverse logistics process can be tracked and managed by automating the process. The total number of spare bottles available, bottles in use and empty bottles with the customers can also be tracked by the customers along with the vendor and delivery drivers.
This increases transparency and reduces customer disputes adding value to the brand. Customers become loyal to a brand increasing brand loyalty if they have a satisfying and hassle-free experience that decreases the churn rate of the business.
Enhances sustainability
Reverse logistics in the water delivery business is crucial for improving the sustainability of the business. Research by Gartner shows that about 70% of businesses want to invest in the ‘circular economy’. With the reverse process in place, companies can participate in a system focused on a sustainable economy. Water bottles are mostly made up of plastic which can harm the environment if the bottles are not tracked and managed accurately. This can lower the sustainability score of your business.
The efficient movement of empty bottles from the customers to the vendors and filled water bottles from vendors to the customers is crucial for maintaining a good flow of bottles and improving sustainability scores. Automated reverse logistics increases the efficiency of the circular flow of bottles and reduces the cost of buying new empty bottles.
Reverse logistics in the water delivery business might seem like a minor process; however, it can increase costs and even incur financial losses if not executed efficiently. Automating reverse logistics with a bottled water delivery system helps manage the data of empty bottles and track them. It is integrated software that automates the entire water delivery business along with the reverse logistics involved. Schedule a meeting with our team of water delivery experts to understand more about “water delivery solutions” and see how we can help you increase the efficiency of the reverse logistics of your water delivery business.
He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.
