Chain Reaction is Sourcing Journal’s discussion series with industry executives to get their take on today’s logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Sylvia Ng, CEO of ReturnBear, discusses how the e-commerce return solutions company is reshaping reverse logistics to drive efficiency, sustainability and customer satisfaction.
Name: Sylvia Ng
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Title: CEO
Company: ReturnBear
What industries do you primarily serve?
We primarily serve the fashion, footwear and accessories industries. ReturnBear specializes in tackling the often overlooked—yet crucial—aspect of e-commerce: reverse logistics. We provide seamless solutions that enable brands to manage returns efficiently while enhancing customer satisfaction. Our latest initiatives focus on reducing environmental impact and logistical costs by keeping returns local and integrating instant refund technologies, significantly easing the return process for consumers and reducing carbon footprint.
Which industry do you think has the most to teach fashion about improving their supply chain logistics?
Fashion can learn a great deal from other industries like pharmaceuticals or electronics, particularly in how they manage complex supply chains with precision. However, insights from other geographies, especially from Middle Eastern and Asian markets, are invaluable. These regions often adopt advanced technologies ahead of North America, driven by unique consumer behaviors and expectations, which fashion could integrate to enhance its logistics frameworks.
What is the main thing brands and retailers could do right now that would immediately improve logistics?
Brands and retailers should extend their logistics coverage to international markets. This approach not only broadens their market reach but also streamlines the supply chain by reducing the time and complexity involved in managing global shipments and returns. It also improves customer experience since you’re able to fix problems closer to where the consumer is.
When it comes to supply chain logistics challenges, there are things companies can fix, and things that are beyond their control. How can the former help the latter?
Companies can mitigate uncontrollable challenges by preparing for the unexpected. This means having robust contingency plans for every original strategy and incorporating buffers in margins and forecasts to accommodate unforeseen events. Proactive planning enables resilience and flexibility in the supply chain.
What area of logistics isn’t receiving the industry attention it deserves?
I’m biased, but the answer is reverse logistics! Reverse logistics remains under prioritized, despite its growing impact on profitability and customer satisfaction. There’s a significant gap in leadership roles focused on returns, such as dedicated heads of returns or VPs of reverse logistics, which then leads to inadequate accountability and visibility within organizations about the scale and ramifications of return issues.
When it comes to creating efficiencies, there are quick wins and longer plays. What are a few things your company is doing to help its partners succeed on both fronts?
For quick wins, ReturnBear offers instant refunds at return points, automated return tracking and processing and consolidation, which together cuts return costs by 30 to 70 percent. Our longer-term strategies include forward fulfilling returned items in local markets to prevent unnecessary cross-border shipments, thus reducing both costs and environmental impact by up to 40 percent.
What is your company doing to make the movement of goods more sustainable?
Sustainability is at the core of ReturnBear’s operations. We were founded on the principle that we need to reduce the movement required for getting return goods back into inventory. By ensuring that goods sold internationally are rerouted to the nearest local buyer instead of returning to a central warehouse, we not only minimize transport distances but also contribute significantly to reducing global carbon emissions.
What logistic challenges do you think the industry is currently facing?
High return costs and the rise in consumer practices such as bracketing and wardrobing present significant challenges. ReturnBear tackles these issues head-on; our return point network verifies returned items on the spot, issues immediate payouts to consumers and consolidates items for shipping. This kills fraud and optimizes the return process to maintain profitability and customer trust all at once.
What is the one thing brands and retailers could be doing to make better use of technology to improve logistics?
To leverage technology effectively, brands and retailers need to focus on data collection and integration. Gathering comprehensive data and connecting disparate data sources enable more informed decision-making and enhance the capabilities of technologies like artificial intelligence (AI), which are crucial for forecasting and managing complex logistics scenarios.
Are you optimistic about the state of supply chains in the next few years?
Yes, I am very optimistic. The dynamic political landscape and economic pressures are fostering fierce competition, which in turn drives innovation. This challenging environment compels companies to innovate and refine their supply chain operations, promising improvements and efficiency gains in the coming years.
