Blue Yonder's Bid to Transform Returns Management
Returns across the supply chain remain a challenge for both retailers and logistics operators, with large volumes of unsold or unwanted goods affecting profits, wasting inventory and causing environmental strain.
As e-commerce sales continue to rise, the issue becomes more pressing.
In a bid to improve its returns management offering and streamline services across the returns lifecycle, supply chain solutions specialist Blue Yonder has confirmed its acquisition of Optoro, a specialist in returns technology.
Enhancing returns management
The returns process is often a weak point in inventory management. With around 9.5 billion pounds of returned goods ending up in landfill every year, poor handling of this area brings both cost and sustainability problems.
Blue Yonder sees Optoro’s technology, particularly for high-volume retailers and logistics service providers (LSPs), as a way to build a complete solution that supports the full returns journey.
Tim Robinson, Corporate Vice President for Returns at Blue Yonder, explains: "With e-commerce sales continuing to grow, retailers need to be prepared when it comes to returns, which were projected to hit US$890bn last year, representing 16.9% of annual retail sales and more than double the return rate from 2019.
“We are excited to acquire Optoro to enrich the capabilities available to our customers, allowing them to enhance their ability to manage returns with increased efficiency and effectiveness to meet the needs of consumers.
"This strategic acquisition affirms Blue Yonder's commitment to leading the industry, providing customers with unparalleled opportunities to refine their operations and driving transformative business success through a comprehensive returns solution.”
An extensive solution for high-volume supply chains
Returns are difficult to handle efficiently at scale. But, by bringing Optoro into its portfolio, Blue Yonder combines two returns offerings into one, with retailers, brands and LSPs now able to access an end-to-end solution that handles everything from initiation and processing to final resale or disposal.
The addition complements a previous acquisition in the realm of returns management.
Blue Yonder can now offer enterprise-grade cloud-native tools, built to manage returns both in-store and at the warehouse. They handle the disposition of items – in other words, deciding whether a product is resold, recycled or discarded – completing what Blue Yonder refers to as the item’s circular journey.
The new set-up also introduces the ability to run dedicated returns facilities, meaning businesses can design specialist hubs for returned goods. The result is added flexibility to warehouse planning, as well as reduced turnaround time and congestion elsewhere in the supply chain.
What's more, Blue Yonder’s platform now supports in-store returns using an application that both accelerates processing and automates how inventory is handled.
For stores, this opens the door to product resale opportunities and brings customers into store locations, potentially leading to further purchases.
Recommerce, sustainability and cost control
A key element of the enhanced offering is its recommerce function, allowing brands to identify which items can be resold, before routing them directly to recommerce vendors.
Recommerce is the resale of used or returned items, often through second-hand or outlet channels. With a high volume of returns often left to sit in warehouses or be sent to landfill, it promotes inventory circularity – the reuse and repurposing of stock that would otherwise be written off.
Operationally, the changes extend Blue Yonder’s footprint in returns management. Existing tools covering returns initiation, customer kiosks and decision-making software are now connected to the newly-added processing capabilities, enabling users to manage the returns journey from start to finish.
"With the addition of Optoro, Blue Yonder will be able to provide more expanded capabilities that address the complexities of the returns lifecycle," says Jordan K Speer, Research Director at IDC Retail Insights.
"This strategic move not only opens new opportunities to enhance operational efficiency but also aligns with the growing demand for sustainable practices."
Long-term supply chain value
Blue Yonder outlines four areas of benefit for customers using the combined system: efficiency, profitability, customer experience and sustainability.
On average, up to 18% of inventory can be tied up in returns. The new solution is built to process these returns more than twice as fast as traditional methods, which speeds up refunds and restocking.
Financial performance also improves by reducing returns volumes and controlling reverse logistics costs. In warehouses, this translates to lower labour costs and reduced risk of fraud.
Retailers can also offer quicker, smoother customer journeys with fast exchanges and refunds. Blue Yonder notes this as a method to boost customer satisfaction and brand loyalty.
On the sustainability front, the system aims to reduce shipping distances, stock transfers and waste, while also removing the need for return labels. All these adjustments support companies looking to make their supply chains more sustainable.
Amena Ali, CEO at Optoro, adds: "Optoro was founded when e-commerce was in its early days, with the foresight to solve the returns problem. Over time, we built enterprise-grade returns solutions to meet the needs of the most iconic retail brands.
"Now, thanks to Blue Yonder’s growing customer base, we will realise the full potential of our vision, helping thousands of companies worldwide address the returns challenge. By seamlessly integrating with Blue Yonder, it will be easier than ever for companies to optimise their returns to improve the shopper experience, inventory planning and overall profitability."
