The Returns Supply Chain

Transcription

1 The Returns Supply Chain Moderator: David Robinson Vice President, Client Innovation Pitney Bowes Michael Sundel Founder WorldPak Nicholas Isasi Exec. Vice President DM Transportation Gene Ficarra Assistant Vice President Commercial Sales and Operations SourceAmerica

2 Welcome to The Returns Supply Chain Session Attendees, please go to Menti.com, enter , then enter the top 3 words that come to mind when you think about the Returns Supply Chain

3 Overview of the Supply Chain

4 The Returns Supply Chain Purpose: Should Retailers Prioritize Return Strategies to Keep Consumers Happy? Why it's worth the hassle, according to experts." - Ann-Marie Alcántara, Adweek 1/5/2018 Serving the Client! Return Policies Affect Consumer Behavior; "A key thing for businesses to realize is that they have to know their product category, and they have to understand their customers, - Sam Del Rowe, CRM 2/22/2016 Regardless of channel, store brands need to keep consumers at the center of every strategic initiative throughout the year. - Jordan Rost, VP, consumer insights, Nielsen 1/2/2018

5 Top 3 Words that Come to Mind on the Returns Supply Chain

6 Cross-Border Returns: Opportunities Amplified A Cross-Border return is generated when a retailer ships an item to a shopper in another country and the shopper either: Cannot be located due to a bad address Does not accept delivery (i.e., DDU shipping terms not adequately explained) Decides that the item is not suitable The retailer faces many similar challenges with returns (domestic and Cross-Border), e.g.: Building or protecting buyer loyalty The cost of satisfying the buyer The timeliness of executing the returns process Minimizing the disruption of returns to its main business Michael Sundel, WorldPak

7 Cross-Border Returns: Opportunities Amplified However, returns challenges are greater with Cross-Border returns because: International shipping (returns) costs tend to be higher International delivery takes longer (assuming the same shipping class is applied) Some buyers may feel more comfortable buying from a domestic retailer The retailer s existing domestic returns system may not be able to process crossborder returns as effectively The retailer with stores in another country may stock different items There could be different expectations for returns based on local policies or laws Getting a returned item back to the retailer s distribution center so that it can be resold may be problematic due to timing, ultimate condition of the item, and costs. Michael Sundel, WorldPak

8 Cross-Border Returns: Strategies Minimize the likelihood that shipments will generate returns Work to ensure successful delivery Properly set buyer expectations for cost and timing Accurately describe the item s features or characteristics Develop a country-specific returns system Focus on speeding up the exchange of information rather than the physical movement of items. Ensure the buyer s experience is as similar to local as possible Leverage in-country assets, such as stores Do not duplicate work: process a return only once Michael Sundel, WorldPak

9 Customer Experience 1. Quick Pickup, Disposition & Credit are the main drivers 2. Does service drive the return experience or does cost? 3. Local services and consolidation Nicholas Isasi, DM Transportation

10 Shortening The Cycle 1. Utilize reverse pickup points as fulfillment locations 2. Challenge: system ability to handle additional warehouses 3. Benefit: lower logistics costs and quicker delivery times Nicholas Isasi, DM Transportation

11 Compete on the shelf collaborate on the supply chain Greater scale Increased options Lower costs Nicholas Isasi, DM Transportation

12 SourceAmerica Reverse Logistics PostalVision 2020/Reverse Logistics Association Presented by: Gene Ficarra, AVP Commercial Division September 20, 2018

13 SourceAmerica Mission Providing employment choices for individuals with disabilities through the nonprofit agency community Vision All people with a disability have a choice of careers and are recognized for their abilities in creating a vibrant work environment This document is proprietary to SourceAmerica. 2

14 SourceAmerica nonprofit network Wherever you are and whatever you need, our network NPAs are there to help you. 20 More than 750 More than Product and service lines of business NPAs Cities/installations States * Field offices ** Data as of Q4 FY2018 *Includes coverage in DC, Puerto Rico, Virgin Islands, Guam, American Samoa and the Trust Territory of the Pacific Islands ** includes Atlanta, Chicago, Dallas/Fort Worth, Hartford, San Francisco, Williamsburg, Washington, D.C., plus Seattle flex offices and national office, Vienna, VA This document is proprietary to SourceAmerica. 3

15 SourceAmerica network service capabilities Administrative services Commissary services Consumer product packaging and manufacturing Contact center and IT services Custodial services Document and records management Electronics recycling Fleet management Food services Grounds maintenance Healthcare environmental services Laundry services Secure document destruction Secure mail services Supply chain management Total facilities management This document is proprietary to SourceAmerica. 4

16 End-to-end supply chain solution Staffing Services Single point-of-contact Vendor mgmt. system Reporting & tracking Consolidated billing Reverse Logistics Receiving/sorting Repair/refurbish/test Recycling Fulfilment E-commerce Customer service Warranty support Distribution Services Restock Inventory mgmt. Vendor mgmt. Consumer Products Packaging & Kitting Assembly Labeling Packing/sealing Kitting/bundling Fulfillment Services Inventory mgmt. Sorting Storage & shipping E-recycling/CyclePoint Nationwide reach Recycling Data erasure Shredding Warehousing/Storage Receiving & storage Facilities mgmt. Seasonal overflow Pick & Pack Receiving Inventory Storage Fulfillment Flow of Goods and Services Distribution Reverse Logistics Consumer Products Packaging & Kitting Staffing Services Pick & Pack CyclePoint Warehousing/ Storage Fulfillment Services This document is proprietary to SourceAmerica. 5

17 End-to-end Reverse Logistics Transport Reverse logistics Returning products back into the supply chain for value recovery or disposal Retrieve Receive Handling returns Customer service Call center Repair/refurbishment Salvage Recycling Inspect Warehousing Sort Dispose Management Re-sell Recycle Scrap This document is proprietary to SourceAmerica. 6

18 Reverse Logistics / Network Challenges Reduce your physical logistics footprint Meet changing scope and needs with our supply chain agility Industry leading asset and inventory integrity programs Technology to include state-of-the-art Warehouse Management Systems Supply chain management experts capable of handling your endto-end supply chain This document is proprietary to SourceAmerica. 7

19 Reverse Logistics / Network Challenges Supply Chain Technology Helps NPAs run a lean and more efficient operation. Technology includes state-of-the-art Warehouse Management Systems and RFIDs, as well as mobile devices mounted on forklifts. These increase the number of items picked/pulled, increase picking accuracy and reduce employee downtime. Optimizing Inventory Best-in-class NPAs are placing more emphasis on demand planning; forecasting and inventory management (accurate put-away, cycle counting); and integrity as a whole, as additional means of ensuring optimal inventory levels. Introducing New KPIs into the Mix NPAs are realizing that to understand how they are performing, they need to capture metrics to gauge performance, such as: on-time delivery, inventory availability, dock-to-stock cycle time and shipping accuracy. This document is proprietary to SourceAmerica. 8

20 Organizational Clothing and Individual Equipment (OCIE), U.S. Army, AMC, NPA Facility Lansing, MI Annual Amount: $22.3 Million Annual FTEs: 173 Award Date: 5/2012 Reverse Logistics Contract Manage OCIE (Organizational Clothing and Individual Equipment) operations to improve inventory management and efficiency Operate and manage more than 923,000 sq. ft. of warehouse space More than 170 DFTEs working on contract Leverage commercial (Accellos) Warehouse Management System (WMS) software for status tracking OCIE materials Clean and repair unserviceable but economically repairable OCIE Consolidate inventory into regional warehouse in the Northeast U.S. to reduce the logistics footprint at Central Issue Facilities (CIFs) Perform inspection, classification, sorting, cleaning, repair, warehousing, packaging, and distribution of OCIE Perform disposition of non-repairable and unserviceable items at direction of the U.S. Army Army TACOM project has grown from the original contract value of $6.8M to $22.3M Data as of Q4 FY2017 This document is proprietary to SourceAmerica. 9

21 Contact: Questions? Thank you for your time! GF Gene Ficarra AVP Commercial Division Phone: (office) (cell) This document is proprietary to SourceAmerica. 10

22 The Returns Supply Chain Moderator: David Robinson Vice President, Client Innovation Pitney Bowes Michael Sundel Founder WorldPak Questions? Nicholas Isasi Exec. Vice President DM Transportation Gene Ficarra Assistant Vice President Commercial Sales and Operations SourceAmerica

23 Thank you.