Breaking Real Logistics Forward Five Key Supply Chain Considerations for Your Reverse Logistics Strategy Presented by: Jordan Jakubovitz Optoro, Inc.
OUR CLIENTS INVESTS / STRATEGIC ALLIANCES / ACCOLADES
$380B Annual U.S. retail returns (2017) 1 2017 Optoro, Inc. 1. Source: The Retail Equation & National Retail Federation. 2017.
8%-12% YoY returns growth rate 1 2017 Optoro, Inc. 1. Source: UPS. 2016.
2017 Optoro, Inc. How do you get here?
KEY CONSIDERATIONS F REVERSE SUPPLY CHAIN DESIGN
KEY CONSIDERATIONS F REVERSE SUPPLY CHAIN DESIGN CONSIDERATION #1 IN-STE CONSOLIDATED
WHEN DOES IT WK BEST? CONSIDERATION #1 IN-STE Inventory Profile Low retail price High % of new sealed returns, non-electronics, or large products Retail Store Capacity Significant floor space and staff Large clearance sections Ship-from-store capability CONSOLIDATED High retail price Requires value-added services High volume Limited floor space or staff Limited clearance sections High % of returns not stocked
CONSIDERATION #1 IN-STE SUGGESTED APPROACH HYBRID CONSOLIDATED
KEY CONSIDERATIONS F REVERSE SUPPLY CHAIN DESIGN CONSIDERATION #1 CONSIDERATION #2 CO-LOCATED DISTRIBUTION CENTER IN-STE CONSOLIDATED DEDICATED RETURNS CENTER
WHEN DOES IT WK BEST? CONSIDERATION #2 CO-LOCATED DISTRIBUTION CENTER Inventory Profile Low returns volume Limited seasonal fluctuations Low variation in condition and product categories Existing Supply Chain Forward DCs with excess capacity Greenfield DC design DEDICATED RETURNS CENTER High returns volume High variation in condition and product categories Complex returns ops Limited capacity in existing DCs Drop-shippers with no physical warehouse
KEY CONSIDERATIONS F REVERSE SUPPLY CHAIN DESIGN CONSIDERATION #3 INSOURCE CONSIDERATION #1 IN-STE CONSIDERATION #2 CO-LOCATED DISTRIBUTION CENTER CONSOLIDATED DEDICATED RETURNS CENTER OUTSOURCE
WHEN DOES IT WK BEST? CONSIDERATION #3 Inventory Profile Existing Supply Chain INSOURCE High % goes back to stock or liquidation Requires limited value-added services Low cost operations Available warehouse space Dedicated RL team OUTSOURCE Requires specialized value-added services High cost operations Lack specialized service partners Limited RL expertise
KEY CONSIDERATIONS F REVERSE SUPPLY CHAIN DESIGN CONSIDERATION #4 CONSIDERATION #1 CONSIDERATION #2 CONSIDERATION #3 BRANDED CLEARANCE & OUTLETS IN-STE CO-LOCATED DISTRIBUTION CENTER INSOURCE CONSOLIDATED DEDICATED RETURNS CENTER OUTSOURCE THIRD-PARTY REMARKETING
WHEN DOES IT WK BEST? CONSIDERATION #4 BRANDED CLEARANCE & OUTLETS Existing Channels / Internal Resources Available retail and IT resources and expertise Existing clearance & outlet channels with a large buyer base Company Type Consumer brands, OEMs, or retailers with private labels THIRD-PARTY REMARKETING Limited retail and IT resources and expertise Limited to no clearance & outlet channels Warehouse Capacity Limited capacity to store and process returns and excess
KEY CONSIDERATIONS F REVERSE SUPPLY CHAIN DESIGN CONSIDERATION #5 BUILD CONSIDERATION #1 CONSIDERATION #2 CONSIDERATION #3 CONSIDERATION #4 IN-STE CO-LOCATED DISTRIBUTION CENTER INSOURCE BRANDED CLEARANCE & OUTLETS CONSOLIDATED DEDICATED RETURNS CENTER OUTSOURCE THIRD-PARTY REMARKETING BUY
KEY CONSIDERATIONS F REVERSE SUPPLY CHAIN DESIGN CONSIDERATION #1 CONSIDERATION #2 CONSIDERATION #3 CONSIDERATION #4 CONSIDERATION #5 IN-STE CO-LOCATED DISTRIBUTION CENTER INSOURCE BRANDED CLEARANCE & OUTLETS BUILD CONSOLIDATED DEDICATED RETURNS CENTER OUTSOURCE THIRD-PARTY REMARKETING BUY
Thank you! Please complete the survey.