Blue Yonder, a leader in digital supply chain transformation, has announced the acquisition of Optoro, a technology provider specializing in returns management. This acquisition will enhance Blue Yonder’s Returns Management capabilities and provide a more comprehensive solution.
Product returns pose challenges for consumers, negatively impact company profit margins, and lead to inefficiencies in inventory management throughout the supply chain. And processing returns, whether in warehouses or in-store, is complex, and 9.5 billion pounds of returned items end up in landfills each year. Blue Yonder views Optoro’s strong returns processing capabilities, particularly for major retailers with high return volumes, as a means to enhance its offerings. By combining the solutions from both companies, retailers, brands, and logistics service providers gain access to an efficient, end-to-end Returns Management solution that improves visibility and reduces waste.
With Optoro’s capabilities added to Blue Yonder’s existing returns management tools, Blue Yonder can now offer customers several advantages:
1. Enterprise-Grade Returns Processing: This upgrade includes cloud-based processing tools for handling returns in both warehouses and stores, completing the return cycle.
2. Dedicated Returns Facilities: Retailers and brands can better manage specialized returns facilities, improving efficiency.
3. In-Store Returns: An in-store application speeds up processing and automates inventory management, maximizing recovery and margins. This helps retailers resell products and drive customer foot traffic.
4. Recommerce Capabilities: The solution helps identify resalable inventory and sell it to the next best option, promoting sustainability by reducing warehouse backlogs and waste.
5. Next-Level Returns Management: Improved tools for returns initiation and decision-making enable customers to effectively manage the entire returns process.
Customers who use this solution can expect several benefits:
– Enhanced Efficiency: Many customers have up to 18% of their inventory tied up in returns. Optimizing this process can double receiving speeds and lead to quicker inventory turnover and faster refunds.
– Improved Financial Performance: Customers can save costs by reducing returns and reverse logistics expenses, while also lowering labor costs through streamlined warehouse operations.
– Better Customer Experience: Customers can provide a simple digital returns process and a great in-store experience, with fast refunds and exchanges that build brand loyalty.
– Increased Sustainability: Customers will cut down on shipping miles and waste, further supporting sustainability efforts.
Blue Yonder is the only company offering a full range of solutions for planning, execution, fulfillment, and returns, helping create sustainable and profitable supply chains. This acquisition is Blue Yonder’s sixth in under two years, reflecting its growth in supply chain management.
KEY QUOTES:
“With e-commerce sales continuing to grow, retailers need to be prepared when it comes to returns, which were projected to hit $890 billion last year, representing 16.9% of annual retail sales and is 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.”
Tim Robinson, corporate vice president, Returns, Blue Yonder
“Blue Yonder’s acquisition of Optoro extends its returns management solution as an even more comprehensive offering. With the addition of Optoro, Blue Yonder will be able to provide more expanded capabilities that address the complexities of the returns lifecycle. This strategic move not only opens new opportunities to enhance operational efficiency but also aligns with the growing demand for sustainable practices. Blue Yonder’s comprehensive approach addresses the downside of traditional returns processes, which often lead to poor profitability and lower customer satisfaction, by taking a transformative, dynamic approach to the entire end-to-end supply chain. The new combined offering has the potential to deliver great value to its users.”
Jordan K. Speer, research director, IDC Retail Insights
“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 realize 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 optimize their returns to improve the shopper experience, inventory planning, and overall profitability.”
Amena Ali, CEO, Optoro
