Leveraging Reverse Logistics to Win in ecommerce

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1 Leveraging Reverse Logistics to Win in ecommerce David Vehec, GENCO September 1, 2015

2 The Consumer Experience Point of Sale Returns 70% of Consumers want Free Shipping on Returns 55% of Consumers Want to be Able to Return On-line Purchases to Stores 2

3 Meeting Consumer Expectations Buy online, pick up in store Anywhere, Anytime shopping with flexible return options Buy online, ship to store Buy online, return to store Next-day delivery Free shipping Flexible return policy Free parcel returns Branded mobile apps International shipping 3

4 The Consumer-Driven Future of Retail 4

5 Supporting a Customer-Friendly Returns Strategy In order to provide an optimal customer experience, retailers need to provide customers with a seamless returns process. This necessitates: Enhanced Customer Service Cost Control Reverse Logistics Management Complete Inventory Visibility Effective Disposition Flexible Technology Solution Redeployment or Re-entry into Inventory Strategy 5

6 Supporting a Customer-Friendly Returns Strategy Your Take How are you providing an excellent customer returns experience? Do you have examples? Do you offer anything to your customers to ensure you don t lose them? How do you support it from a technology and labor standpoint? 6

7 Facilitating Relationships with Vendors Consolidate Returns, Aggregate Data Run one dedicated operation for returns Create inventory visibility across all channels and dispositions Identify returned item by return point, track by vendor or SKU Manage outside-the-us sourcing Manage Compliance Build governmental regulations for disposition into returns system Incorporate proof of destruction into process Compete on Supply Chain Differentiate your commoditized product Redeploy underperforming SKUs to increase recovery Ensure brand protection for overstock or returned items 7

8 Facilitating Relationships with Vendors Your Take Is your Returns Management System helping you manage vendor relationships? Do you have examples? How effectively are you tracking point of return and reason code? What s your biggest obstacle to gather data to leverage with vendors? 8

9 Meeting Ever-Changing Customer Demand Increase Flexibility with Technology Capitalize on holistic real-time visibility of inventory, including return-to-stock Fulfill orders from returned inventory though reverse system Maintain leaner inventory as orders become smaller, more frequent by restocking the 30% of online orders that are returned Liquidate Returns and Overstock Minimize transportation costs with direct liquidation channel Create a revenue stream from unwanted goods Turn clearance or overstock items quickly Streamline Operations Decrease touches through reverse process to minimize costs Credit customers for returns quickly, effectively 9

10 Meeting Ever-Changing Customer Demand Your Take How are you providing an excellent customer returns experience? Do you have examples? Do you offer anything to your customers to ensure you don t lose them? How do you support it from a technology and labor standpoint? 10

11 Customer Success Story #1 11

12 Customer Success Story #2 12

13 Key Takeaways Build a robust reverse strategy to capitalize on the growing returns market Streamline operations, focus efforts on enhancing customer-facing activities Manage compliance with vendor agreements and internal policies Improve cash flow and reduce inventory Maximize asset recovery through appropriate liquidation channels 13

14 Leveraging Reverse Logistics to Win in ecommerce Discussion 25 August

15 Appendix

16 Enabling Flexibility for the Future 16

17 Through Product Lifecycle Logistics 17