The Reverse Logistics Dilemma

Transcription

1 The Reverse Logistics Dilemma Moderator Gailen Vick Founder & Executive Director of RLA Panelist Maria E Molina Business Development Manager, PlanITROI & John Sessions Director of Business Development, Encompass

2 Why Was The RLA Formed? To support third party service providers (3PSPs) To educate OEMs & Retailers on why they need to outsource their RL To enable Private Industry, Consultants, Academics & Governments to connect and share new ideas and opportunities

3 Reverse Logistics Terminology by Industry CORPORATE Industry IDENTITY Definition CHANGE Life Cycle Management INDUSTRY Apparel Automotive & HD Consumer Products Furniture Hospitality Military Retail Grocery Space & Aviation White Goods TERMINOLOGY Merchandise Returns Remanufacturing After Market Supply Chain Rebuilders/Refurb Reader Board Shopping Retrograde Unsaleables Obsolescence Takeback s = E Q U A L S = R E V E R S E L O G I S T I C S = E Q U A L S = After Purchase Life Cycle Customer Service (helpdesk) Depot Repair/ReMan Service Logistics (Field Service) Transportation/Warehousing Spare Parts Management RMA Management Replacement Management Refurbishment Screening/Count Auditing End-of-life Manufacturing Remanufacturing Fulfillment Services IT Process Management Recycling Scrap/Waste Management Gray/B Channel Management Warranty Management Asset Management Sustainability Environmental Resources Reverse Logistics is the process of managing assets (whether negative or positive) after a product or service is purchased or consumed in all industries and across all disciplines.

4 What Is The RLA s Mission? To educate industries about Reverse Logistics processes which are common to all. Along with Certification of RL Professionals. To produce events around the world where OEMs, ODMs, Branded and Retail companies receive information on RL support services.

5 Where Does Reverse Logistics Fit? CORPORATE IDENTITY CHANGE New Product Development Design Development Technology Roadmaps ASIC Development Mechanical Design PCB Layout Prototyping New Product Introduction Supply Chain - After Market Supply Chain PRODUCT LIFE CYCLE FORWARD LOGISTICS Material Management Vendor Relations Planning Procurement Inventory Planning Component Fabrication Manufacturing & Distribution PCB Assembly Box Assembly Volume Manufacturing Integration Configuration Final Testing Distribution to Customer Customer Fulfillment Transportation Reverse Logistics Dilemma E N D U S E R / C O N S U M E R REVERSE LOGISTICS Aftermarket Customer Services Customer Service (helpdesk) Depot Repair/ReMan Service Logistics (Field Service) Transportation/Warehousing Spare Parts Management RMA Management Replacement Management Refurbishment Screening/Count Auditing End-of-life Manufacturing Remanufacturing Fulfillment Services IT Process Management Recycling Scrap/Waste Management Gray/B Channel Management Environmental Resources Warranty Management Sustainability Asset Management Sustainability Environmental Resources

6 Direction comes from two bodies, Advisory Board & Industry Committees SENIOR MANAGER, REVERSE Logistics - Dave Moloney

7 73 Editions WW Circulation of 50,000+ Published Monthly e-reader formats kindle

8 The Dilemma di lem ma: a difficult or persistent problem Source: Merriam-Webster dictionary

9 Reverse Logistics Dilemma Every Company Has An RL Dilemma Obvious- Consumer Electronics, Computers, Automotive Not so obvious- Books, Apparel, Retail, Grocery, Software Practically invisible- Pharmaceuticals, Aerospace, Agriculture, Medical, Energy

10 Companies Are Not Aware of the Dilemma! SEE THIS MISS THIS Senior Management Frequently Unaware Of: - Size of RL operations - Cost of RL operations - Impact of RL operations on bottom line - Impact of RL operation on customer service - Impact of legislation on RL - Many line/staff managers don t know RL Operations even exist

11 How to Make a Difference Ownership within Enterprise Who Owns the RL Function? Distributed across functions Hidden in operations or customer service Measurement Tools to measure the performance of RL? Few, specialized software tools Financially absorbed in other departmental budgets

12 The RL Impact RL affects the bottom line Finance What are the true costs / benefits to the organization? I.E. Actual costs vs. retained asset value Operations How is RL affecting operational efficiency? I.E. Quality improvements based on RL Sales & Marketing What is the effect of RL on sales? I.E. Customer satisfaction, brand reputation, remanufactured goods impacting prices

13 Source: RLA Amsterdam Conference 2010, Keynote Address Rehman Mohammed, Cisco Reverse Logistics Dilemma

14 (2.4% of FY 09 Net Income) Sources: RLA Amsterdam Conference 2010, Keynote Address Rehman Mohammed, Cisco & Investor.cisco.com FY 2009 FY 09 Net Income $ 6.1 Billion GAAP

15 What is the Impact to Mother Earth? Environmental Are we a good corporate citizen? Are we alienating clients? Governmental / Legislative Are we meeting governmental requirements? Are we open to legal action? E.g. RoHs, WEEE, SB 50 Bottom Line Cost 3% to 15% in every company It all affects the bottom line

16 RL Trends $63.12 Trillion Global GDP 1-3% is RL Opportunity Global RL Reverse Logistics - $3.15 Trillion

17 Solution Resolve The Dilemma Create A C Level Position For RL Management The Chief Reverse Logistics Officer (CRLO) would: Have authority to make changes on RL globally, but day-to-day responsibility stays in the hands of each Department Monitor the P & L to develop a Virtual profit center Acquire the necessary tools to support the finance department and report effectively to the Executive Staff

18 Questions

19 Thank You! Gailen Vick, Executive Director Reverse Logistics Association x11