Blue Yonder boosts returns solutions with Optoro acquisition

Blue Yonder has acquired returns technology provider Optoro in a move to strengthen its capabilities in warehousing and in-store returns management for retailers, brands, and logistics service providers.

The acquisition is intended to address the persistent challenges associated with product returns, which can create friction for consumers, adversely affect company profit margins, and lead to inefficiencies in inventory utilisation throughout the supply chain.

With the integration of Optoro's technology, Blue Yonder aims to supply a more comprehensive end-to-end returns management solution. This is expected to streamline returns processing, improve efficiency, reduce waste, and offer retailers greater visibility over their returns operations. The issue is significant: returns were projected to reach USD $890 billion last year, representing 16.9% of annual retail sales, more than doubling since 2019. An estimated 9.5 billion pounds of returns end up in landfills annually, underlining the environmental and financial impacts of ineffective returns management.

Blue Yonder has identified a particular need to improve the processing of returns both in warehouses and in-store environments - an area where Optoro is recognised for its scalable solutions, especially by major brands and those handling high return volumes. By bringing Optoro's functionality together with its own technologies, Blue Yonder is offering a broader suite of services focused on operational efficiency and sustainable supply chain practices.

Industry commentary

"With eCommerce sales continuing to grow, retailers need to be prepared when it comes to returns, which were projected to hit USD $890 billion last year, representing 16.9% of annual retail sales and is more than double the return rate from 2019," said Tim Robinson, Corporate Vice President, Returns, Blue Yonder. "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."

Integrating Optoro's platform will enable Blue Yonder customers to take advantage of a number of specific benefits. These include enterprise-level processing, expanded support for dedicated returns facilities, improved in-store returns experiences, and advanced reCommerce capabilities. The partnership leverages configurable workflows to reCommerce vendors, allowing for more efficient identification and resale of inventory, and ultimately reducing warehouse backlogs and the number of goods sent to landfills.

In addition, the solution supports in-store returns via a dedicated app, enabling faster transaction processing and automated inventory disposition. By increasing the flow of returns to stores, companies can reclaim margin through in-person reselling and enhance footfall for new purchasing opportunities.

Blue Yonder's extended offering also encompasses returns initiation, decisioning, and self-service kiosks, aiming to deliver a fully managed, end-to-end returns journey for its clients.

Jordan K. Speer, Research Director at IDC Retail Insights, commented on the strategic rationale of the acquisition:

"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."

Customer benefits outlined

Blue Yonder states that companies adopting the newly enhanced returns solution can expect improved operational efficiency, with the potential to accelerate receiving speeds by more than double. This enables quicker turnaround for inventory resale and speeds up customer refund processes. Improved returns management is also crucial as up to 18% of inventory can be tied up within the returns process at any time.

Financial performance can be enhanced through cost savings allowed by lower reverse logistics expenses, streamlined warehouse operations, and reduced incidence of fraud. The new platform also aims to improve customer experience with more convenient digital and in-store returns journeys, as well as faster processing of refunds and exchanges. On the sustainability side, the optimised process is expected to result in fewer shipping miles, less stock wastage, and minimised stock transfers, alongside the removal of returns labels from parcels.

Commenting on the acquisition, Amena Ali, Chief Executive Officer of Optoro, said:

"Optoro was founded when eCommerce 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."

The deal marks Blue Yonder's sixth acquisition in under two years, signalling a period of increasing activity in the supply chain management sector. The acquisition gives Blue Yonder additional capability to serve both retail and logistics industries with a more comprehensive suite of solutions covering planning, execution, fulfilment and now an extended focus on returns.