Blue Yonder Acquires Returns Specialist Optoro

To expand its returns management capabilities and offer a resilient, comprehensive solution, Blue Yonder today announced the acquisition of Optoro, Inc., a leading technology provider for returns. Product returns create friction for customers, negatively impact companies’ profit margins, and lead to significant inefficiencies in inventory utilization across the entire supply chain.

(Dallas/Stuttgart) The returns processing in warehouses and stores represents a central part of the returns lifecycle, not least because 4.3 billion tons of returns end up in landfills. Blue Yonder has recognized that Optoro’s intelligent returns processing capabilities present an opportunity to enhance its service offerings, particularly in the areas of large retail companies and brands with high return volumes. Through the combined solutions of Optoro and Blue Yonder, retailers, brand manufacturers, and logistics service providers (LSPs) can optimize their services with a comprehensive end-to-end solution for returns management, increase their efficiency, reduce waste, and improve transparency.

Be Prepared for Returns

“Given the ongoing growth of the e-commerce market, retailers must be prepared for the issue of returns, which was valued at $890 billion last year. This corresponds to 16.9 percent of annual retail sales and is more than double the return rate of 2019,” said Tim Robinson, Corporate Vice President, Returns, Blue Yonder. “We welcome the acquisition of Optoro, which allows us to provide our customers with additional features to manage their returns more efficiently and effectively, meeting consumer demands. With this strategic acquisition, Blue Yonder demonstrates its market-leading position and offers its customers unique opportunities to optimize their operations and achieve sustainable success with a comprehensive returns solution.”

By combining Optoro’s capabilities with Blue Yonder’s existing returns management offering from a previous acquisition, Blue Yonder can now offer its customers the following:

• Enterprise-Level Returns Processing: Expands Blue Yonder’s current offering with cloud-native, technically sophisticated, and versatile processing and disposal capabilities for returns processing in warehouses and stores. This closes the loop on a returned item.
• Return Drop-Off Locations: Retailers, brand manufacturers, and logistics service providers can independently manage their drop-off locations, thereby improving operational flexibility and efficiency.
• In-Store Returns: The in-store app offers significant savings potential through accelerated return processes and automated inventory disposition. By increasing the processing of returns in-store, retailers can resell their products directly, thereby increasing profitability and attracting new walk-in customers.
• Recommerce Features: With the configurable workflows for recommerce providers integrated into the solution, retailers and brand manufacturers can identify resalable inventory, sell to the highest bidder, and promote the circular economy. This minimizes excess inventory and reduces the amount of goods that end up in landfills.
• Next-Generation Returns Management: Through enhanced Blue Yonder functionalities in returns capture, decision-making, and kiosk systems, Blue Yonder customers can manage the entire returns processing end-to-end.

“With the acquisition of Optoro, Blue Yonder is expanding its returns management solution into an even more comprehensive offering,” said Jordan K. Speer, Research Director at IDC Retail Insights. “With Optoro, Blue Yonder can now offer enhanced features that meet the complex requirements of the returns process. This strategic move not only opens up new opportunities to increase operational efficiency but also aligns with the growing demand for sustainable practices. Blue Yonder’s comprehensive approach takes a transformative, dynamic approach to the entire end-to-end supply chain, addressing the drawbacks of traditional returns processes that often lead to low profitability and reduced customer satisfaction. The new combined offering can provide significant value to its users.”

Combined Solution with Benefits

• Increased Efficiency: Optimizing returns management is crucial for return processes, as up to 18 percent of inventory is often tied up in returns processes. Users can accelerate receiving speeds by more than double, enabling faster inventory turnover for resale and quicker refunds to customers.
• Higher Profitability: Customers can achieve significant cost savings by reducing return volumes and lowering return logistics costs. Streamlined processes in the warehouse also reduce labor costs and minimize fraud cases.
• Customer Loyalty through Satisfied Customers: Whether customers use a simple, digital, or more elaborate return process in a store, the combined solution ensures quick refunds and exchange processes, enhancing customer satisfaction and promoting brand loyalty.
• Increased Sustainability: By shortening transport routes, reducing inventory waste and relocations, and minimizing the number of return labels that need to be removed from packages, customers can improve their sustainability.

Founded in the Early Days of E-Commerce

“Optoro was founded in the early days of e-commerce with the vision of solving the returns problem. Over time, we have developed returns solutions for companies that meet the needs of the most recognized retail brands,” said Amena Ali, CEO of Optoro. “Thanks to Blue Yonder’s large customer base, we can now fully realize our vision and support thousands of companies worldwide in overcoming returns challenges. With seamless integration with Blue Yonder, it has never been easier for companies to optimize their returns and improve the shopping experience, inventory planning, and overall profitability.”

Photo: © Optoro