Reverse Logistics Archives - Inbound Logistics https://www.inboundlogistics.com/articles/tags/reverse-logistics/ Thu, 01 Feb 2024 21:26:27 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.inboundlogistics.com/wp-content/uploads/cropped-favicon-32x32.png Reverse Logistics Archives - Inbound Logistics https://www.inboundlogistics.com/articles/tags/reverse-logistics/ 32 32 Reverse Logistics: Curing the Holiday Returns Hangover https://www.inboundlogistics.com/articles/reverse-logistics-curing-the-holiday-returns-hangover/ Thu, 01 Feb 2024 03:19:55 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39236 If you made a few trips back to the mall or to your local UPS Store after the holidays to return unwanted gifts, you’re not alone. For e-commerce brands and retailers, this mass rush of returns is known as the “holiday hangover”—and it’s a doozy.

In 2022, the value of items returned by consumers across the globe totaled $1.8 trillion, up nearly three-fold since 2015, according to IHL Group, a research and advisory firm. And, IHL notes, most retailers report return rates that are outpacing revenue growth.

Along with the ballooning volume, retailers and other shippers need to wrangle with the expenses they incur to process returns. On average, it costs $30 to process a $100 return, once transportation, warehousing, and other costs are considered, according to Optoro, a provider of returns solutions.

Yet, companies can’t inordinately tighten, let alone eliminate, return policies and still remain competitive. Returns are a crucial part of the shopping experience. More than four in five shippers rank the returns process as very or extremely important to customer loyalty, finds a recent Penske survey.

What’s more, consumers who make returns tend to be loyal customers. Optoro research shows approximately two-thirds of consumers tend to make most of their returns at stores or locations where they shop or spend the most.

The result is a “fundamental clash,” says Matt Guiste, global retail strategy lead with Zebra Technologies Corporation. Consumers want fast and easy returns, he notes, yet retailers often struggle to offer this cost-effectively.

Reverse Logistics Headaches

Almost 40% of online retailers list fraud as a top returns challenge, notes Vijay Ramachandran, vice president of go-to-market enablement and experience for Pitney Bowes. While fraud isn’t new, it has ramped up as more purchases have moved online. And, even honest consumers often aren’t skilled at packaging returns. The costs generated by shipments that have unreadable labels or are poorly sealed and open during transit quickly add up, Ramachandran says.

Adding urgency to the need for efficient returns is the perishable nature and seasonality of many items, particularly in fashion. “Most retailers have a limited window for re-merchandising returns,” says Matthew Hertz, co-founder of supply chain consultancy Second Marathon.

Returns also add complexity to a company’s overall supply chain network. An order might ship from one warehouse, while its return is directed to another location or an outside party, like a logistics provider, for instance.

In addition, customers often use the majority of their allowable return window, leaving retailers without those products for a period of time. To compensate, a retailer may need to hold more inventory than would be necessary if returns occurred more quickly.

Overall, organizations need to focus on both reducing the costs of handling returns and maximizing recovery of the returned items, says Gaurav Saran, founder and chief executive officer with Reverse Logix, which offers a returns management solution.

From ‘Gift Gone Wrong’ to ‘Return Right’

Vegan skincare line Soapwalla takes a proactive approach to minimizing returns. Extensive online product descriptions and trial sizes help ensure consumers purchase items they will want to keep.

In developing a returns strategy, one starting goal is reducing the overall volume of returns.

“It’s more efficient to deliver to a customer exactly what they want the first time around,” says Rachel Winard, founder of Soapwalla Inc., a provider of vegan skincare products, who has taken a proactive approach to reducing returns.

She works with clients as a “skin care sleuth” to help them identify the products that will best meet their needs. At times, she’ll suggest customers start with fewer items than they had in their carts. And by introducing travel sizes, Soapwalla enables customers to experiment with different products before buying full-size items.

The Soapwalla team also tweaked product descriptions on the website to highlight, for instance, which products are particularly effective for conditions like eczema or rosacea.

Heading Off Returns

Along with customer service, technology can also help to head off returns. A growing universe of AI tools helps customers with sizing concerns. A solution might let customers know that if they wear a size large in Brand A, they’ll likely need an extra-large in Brand B.

Virtual fitting rooms are gaining popularity, too, notes Jamie Dixon, senior director of supply chain with TMX Transform, a supply chain consultancy. Retailers offering virtual fitting rooms use augmented reality or AI to place virtual products over an image of the customer, so they can check the size, style, and fit.

With some purchases, it makes more sense to let customers simply keep the product they were planning to return. Pipsticks, an e-tailer of stickers and other low-cost paper products, takes this approach at times.

“With our price points, our policy is to tell the customer to give the product away to a friend instead of returning it,” says Nathaniel Vazquez, the brand’s co-founder and CEO. “It’s not worth the cost—financial or environmental—of a return.”

Currently, many merchants—both smaller brands and retail giants—employ third-party technology systems to help manage returns. In addition, more than three-fifths of retailers responding to a recent Zebra survey say they plan to deploy reverse logistics technology by 2026. A primary goal is more effectively managing fulfillment pressures.

To accomplish this, reverse logistics technology needs to provide three functions: visibility, transparency, and traceability, says Douglas Kent, executive vice president of corporate and strategic alliances with the Association for Supply Chain Management.

“These three pieces need to come together to give retailers a control-tower view and keep players informed of where things are,” Kent says.

One obstacle that can thwart these efforts is the level of trust between parties, Kent says, noting that not all business partners may want to share information. Varying levels of investment in different systems between parties in the ecosystem is another challenge.

Two technologies gaining favor for reverse logistics management are AI and tracking technology. AI and intelligent decision making can reduce returns fraud by helping shippers develop policies based on customers’ behavior.

For instance, advanced machine learning may help retailers distinguish honest customers from those who abuse return policies, Ramachandran says. Eventually, AI should help retailers target honest customers with benefits like early credit and fast exchanges, while discouraging fraudsters with return fees and deferred refunds.

Artificial intelligence can also streamline returns processing. For instance, AI-based returns applications can help companies determine how to use a single truck to execute both delivery and returns. Among other benefits, this boosts asset utilization and cuts carbon emissions.

Tracking solutions can help organizations prioritize returns, adds Second Marathon’s Hertz. For example, if a retailer is running low on holiday blazers in early December, management may decide to move these items to the front of the returns processing queue.

Similarly, shippers can leverage technology to implement parameters to identify items that are worth refurbishing. This may shift some returned products from “B” to “A” stock and boost recovery, says Saran.

Distilling the Right Strategies

While technology gets a lot of the buzz, companies can employ a variety of other strategies to make reverse logistics more effective. Here’s a sampling of what experts recommend:

• Price products to include return costs. In an ideal world, online consumers prefer both free shipping and low prices. Most ecommerce companies, however, need to choose one or the other, says Caleb Nelson, co-founder and chief growth officer with Sifted, a provider of logistics optimization software.

For brands to deliver both, they may want to consider boosting prices on products that are returned more frequently.

• Staff strategically. Until recently, few companies placed their star supply chain talent in the returns function, figuring it was mostly a cost center, says Dan Guide, professor of operations and supply chain management at Penn State.

Yet organizations that fail to think through their returns function and allocate appropriate resources can “leave a lot of money on the table,” Guide cautions.

• Don’t forget the KPIs. Many supply chain organizations drive performance, in part, by aggressively monitoring key performance indicators (KPIs) for their outbound logistics operations, but few do the same for their reverse logistics operations, Nelson says.

A shipper might start by identifying products that incur higher-than-average returns, and then research the reason: Is the sizing off? Is the description inaccurate?

Box? What Box?

Enabling online customers to make in-store returns is a smart way for retailers to quickly offer product for resale, helping to optimize the value of returned goods.

• Try no-box returns. No-box returns, in which consumers bring unboxed returns to a drop-off location, can help to mitigate fraud and counter lousy return packaging, Ramachandran says. Because consumers aren’t dropping off sealed boxes, they have less opportunity to ship the wrong item, or an empty box.

And when professionals pack the returns, they typically can cut the number of exceptions caused by poor packaging.

• Optimize, optimize, optimize. Returned items are often shipped between three and five times before they find their next best home, according to Natalie Walkley, senior director of marketing at Optoro. Each segment of this journey adds costs.

A decision-making engine like Optoro’s can help determine the returns destination based on resale value, cost to process, and other factors, Walkley says. That reduces the number of times returns are shipped, and accelerates the time to resale.

“Supply chain network design and optimization is becoming a critical competency,” Kent notes. Shippers need to determine if returns should be directed to the shipping entity, or a third party that specializes in returns. The decision should consider cost and customer service, as well as environmental concerns.

• Implement home pickup for high-value customers. One emerging strategy is enabling consumers to schedule return pickups—no box or label needed—at their homes, Walkley says. Because these returns are then consolidated, home pick-ups can cut restocking time, as well as shipping costs.

To be sure, home pick-ups come with a cost. E-commerce companies might decide to limit this option to higher-value customers.

• Consider using middle-mile consolidation. Middle-mile consolidation, in which returns are collected and sorted at high-volume processing centers, results in consolidated pallets of packages that cost less to ship, Ramachandran says.

This approach also presents opportunities to leverage different options for processing, such as routing higher-velocity or higher-value items so they’re returned to stock more quickly.

• Pre-print sparingly. Including pre-printed return labels with every order adds cost and complexity, as it requires including tracking numbers and barcodes in both the client’s and the carrier’s systems, Nelson says. This generates vast amounts of extraneous data if the labels aren’t used.

It’s generally more efficient to leverage technology that allows customers to print return labels once they initiate a return, he adds.

• Maximize in-store operations for returns. Ecommerce retailers with brick-and-mortar stores will benefit by implementing in-store returns procedures. When stores lack these policies, items can linger, depreciating in value and moving out of season, further cutting into potential recovery, Walkley says.

Training store employees on handling returns can make a huge difference in effectiveness, she adds.

Technology can also help here. Some reverse logistics systems offer decision engines that can help store associates determine how to handle different returns, says Guiste of Zebra.

For example, once an associate enters information on an item, an engine might let the associate know whether the return requires refurbishing. Soon, generative AI may make this even easier. An associate may be able to essentially converse with the system, which then will offer directions for handling the return.

A Renewed Focus on Reverse Logistics

While most e-commerce companies have highly calibrated and optimized efforts to protect product margins on the outbound side—such as aggressively negotiating with carriers and suppliers for lower rates and prices—the same attention is not always paid to reverse logistics.

Applying a similar focus to the reverse logistics function offers several crucial benefits, including optimizing inventory, salvaging potential value from returned items, and enhancing customer satisfaction by streamlining the return experience.

Reverse logistics is also a strategic move toward cost-efficiency, says Nelson: “There is a substantial amount of bleeding that happens on the return and reverse logistics side that needs to be accounted for.”


Giving Returns a Second Life Through Resale and Donation

One innovative way that e-tailers can boost recovery from returns is by leveraging the resale market. By 2027, the global second-hand market will almost double, hitting $350 billion, and in 2022, 52% of U.S. consumers shopped second-hand, according to ThredUp, an online second-hand retailer.

Reselling returns is also better for the environment. Some sustainability-focused brands, like Patagonia, feature sections of “gently used” merchandise on their websites—and this approach is gaining popularity.

Making it easier for consumers to donate items instead of returning is another smart choice gaining traction. Donation can both lower costs and help those in need, says Vijay Ramachandran, vice president of go-to-market enablement and experience for Pitney Bowes.

An effective process for donating returns requires aligning both consumers’ and retailers’ incentives, he notes. Consumer incentives may include credits for their purchases, and the satisfaction of ensuring their items do not end up in a landfill. Retailers’ incentives would be lowering returns costs, as well as minimizing their environmental footprint, Ramachandran notes.


The post Reverse Logistics: Curing the Holiday Returns Hangover appeared first on Inbound Logistics.

]]>
If you made a few trips back to the mall or to your local UPS Store after the holidays to return unwanted gifts, you’re not alone. For e-commerce brands and retailers, this mass rush of returns is known as the “holiday hangover”—and it’s a doozy.

In 2022, the value of items returned by consumers across the globe totaled $1.8 trillion, up nearly three-fold since 2015, according to IHL Group, a research and advisory firm. And, IHL notes, most retailers report return rates that are outpacing revenue growth.

Along with the ballooning volume, retailers and other shippers need to wrangle with the expenses they incur to process returns. On average, it costs $30 to process a $100 return, once transportation, warehousing, and other costs are considered, according to Optoro, a provider of returns solutions.

Yet, companies can’t inordinately tighten, let alone eliminate, return policies and still remain competitive. Returns are a crucial part of the shopping experience. More than four in five shippers rank the returns process as very or extremely important to customer loyalty, finds a recent Penske survey.

What’s more, consumers who make returns tend to be loyal customers. Optoro research shows approximately two-thirds of consumers tend to make most of their returns at stores or locations where they shop or spend the most.

The result is a “fundamental clash,” says Matt Guiste, global retail strategy lead with Zebra Technologies Corporation. Consumers want fast and easy returns, he notes, yet retailers often struggle to offer this cost-effectively.

Reverse Logistics Headaches

Almost 40% of online retailers list fraud as a top returns challenge, notes Vijay Ramachandran, vice president of go-to-market enablement and experience for Pitney Bowes. While fraud isn’t new, it has ramped up as more purchases have moved online. And, even honest consumers often aren’t skilled at packaging returns. The costs generated by shipments that have unreadable labels or are poorly sealed and open during transit quickly add up, Ramachandran says.

Adding urgency to the need for efficient returns is the perishable nature and seasonality of many items, particularly in fashion. “Most retailers have a limited window for re-merchandising returns,” says Matthew Hertz, co-founder of supply chain consultancy Second Marathon.

Returns also add complexity to a company’s overall supply chain network. An order might ship from one warehouse, while its return is directed to another location or an outside party, like a logistics provider, for instance.

In addition, customers often use the majority of their allowable return window, leaving retailers without those products for a period of time. To compensate, a retailer may need to hold more inventory than would be necessary if returns occurred more quickly.

Overall, organizations need to focus on both reducing the costs of handling returns and maximizing recovery of the returned items, says Gaurav Saran, founder and chief executive officer with Reverse Logix, which offers a returns management solution.

From ‘Gift Gone Wrong’ to ‘Return Right’

Vegan skincare line Soapwalla takes a proactive approach to minimizing returns. Extensive online product descriptions and trial sizes help ensure consumers purchase items they will want to keep.

In developing a returns strategy, one starting goal is reducing the overall volume of returns.

“It’s more efficient to deliver to a customer exactly what they want the first time around,” says Rachel Winard, founder of Soapwalla Inc., a provider of vegan skincare products, who has taken a proactive approach to reducing returns.

She works with clients as a “skin care sleuth” to help them identify the products that will best meet their needs. At times, she’ll suggest customers start with fewer items than they had in their carts. And by introducing travel sizes, Soapwalla enables customers to experiment with different products before buying full-size items.

The Soapwalla team also tweaked product descriptions on the website to highlight, for instance, which products are particularly effective for conditions like eczema or rosacea.

Heading Off Returns

Along with customer service, technology can also help to head off returns. A growing universe of AI tools helps customers with sizing concerns. A solution might let customers know that if they wear a size large in Brand A, they’ll likely need an extra-large in Brand B.

Virtual fitting rooms are gaining popularity, too, notes Jamie Dixon, senior director of supply chain with TMX Transform, a supply chain consultancy. Retailers offering virtual fitting rooms use augmented reality or AI to place virtual products over an image of the customer, so they can check the size, style, and fit.

With some purchases, it makes more sense to let customers simply keep the product they were planning to return. Pipsticks, an e-tailer of stickers and other low-cost paper products, takes this approach at times.

“With our price points, our policy is to tell the customer to give the product away to a friend instead of returning it,” says Nathaniel Vazquez, the brand’s co-founder and CEO. “It’s not worth the cost—financial or environmental—of a return.”

Currently, many merchants—both smaller brands and retail giants—employ third-party technology systems to help manage returns. In addition, more than three-fifths of retailers responding to a recent Zebra survey say they plan to deploy reverse logistics technology by 2026. A primary goal is more effectively managing fulfillment pressures.

To accomplish this, reverse logistics technology needs to provide three functions: visibility, transparency, and traceability, says Douglas Kent, executive vice president of corporate and strategic alliances with the Association for Supply Chain Management.

“These three pieces need to come together to give retailers a control-tower view and keep players informed of where things are,” Kent says.

One obstacle that can thwart these efforts is the level of trust between parties, Kent says, noting that not all business partners may want to share information. Varying levels of investment in different systems between parties in the ecosystem is another challenge.

Two technologies gaining favor for reverse logistics management are AI and tracking technology. AI and intelligent decision making can reduce returns fraud by helping shippers develop policies based on customers’ behavior.

For instance, advanced machine learning may help retailers distinguish honest customers from those who abuse return policies, Ramachandran says. Eventually, AI should help retailers target honest customers with benefits like early credit and fast exchanges, while discouraging fraudsters with return fees and deferred refunds.

Artificial intelligence can also streamline returns processing. For instance, AI-based returns applications can help companies determine how to use a single truck to execute both delivery and returns. Among other benefits, this boosts asset utilization and cuts carbon emissions.

Tracking solutions can help organizations prioritize returns, adds Second Marathon’s Hertz. For example, if a retailer is running low on holiday blazers in early December, management may decide to move these items to the front of the returns processing queue.

Similarly, shippers can leverage technology to implement parameters to identify items that are worth refurbishing. This may shift some returned products from “B” to “A” stock and boost recovery, says Saran.

Distilling the Right Strategies

While technology gets a lot of the buzz, companies can employ a variety of other strategies to make reverse logistics more effective. Here’s a sampling of what experts recommend:

• Price products to include return costs. In an ideal world, online consumers prefer both free shipping and low prices. Most ecommerce companies, however, need to choose one or the other, says Caleb Nelson, co-founder and chief growth officer with Sifted, a provider of logistics optimization software.

For brands to deliver both, they may want to consider boosting prices on products that are returned more frequently.

• Staff strategically. Until recently, few companies placed their star supply chain talent in the returns function, figuring it was mostly a cost center, says Dan Guide, professor of operations and supply chain management at Penn State.

Yet organizations that fail to think through their returns function and allocate appropriate resources can “leave a lot of money on the table,” Guide cautions.

• Don’t forget the KPIs. Many supply chain organizations drive performance, in part, by aggressively monitoring key performance indicators (KPIs) for their outbound logistics operations, but few do the same for their reverse logistics operations, Nelson says.

A shipper might start by identifying products that incur higher-than-average returns, and then research the reason: Is the sizing off? Is the description inaccurate?

Box? What Box?

Enabling online customers to make in-store returns is a smart way for retailers to quickly offer product for resale, helping to optimize the value of returned goods.

• Try no-box returns. No-box returns, in which consumers bring unboxed returns to a drop-off location, can help to mitigate fraud and counter lousy return packaging, Ramachandran says. Because consumers aren’t dropping off sealed boxes, they have less opportunity to ship the wrong item, or an empty box.

And when professionals pack the returns, they typically can cut the number of exceptions caused by poor packaging.

• Optimize, optimize, optimize. Returned items are often shipped between three and five times before they find their next best home, according to Natalie Walkley, senior director of marketing at Optoro. Each segment of this journey adds costs.

A decision-making engine like Optoro’s can help determine the returns destination based on resale value, cost to process, and other factors, Walkley says. That reduces the number of times returns are shipped, and accelerates the time to resale.

“Supply chain network design and optimization is becoming a critical competency,” Kent notes. Shippers need to determine if returns should be directed to the shipping entity, or a third party that specializes in returns. The decision should consider cost and customer service, as well as environmental concerns.

• Implement home pickup for high-value customers. One emerging strategy is enabling consumers to schedule return pickups—no box or label needed—at their homes, Walkley says. Because these returns are then consolidated, home pick-ups can cut restocking time, as well as shipping costs.

To be sure, home pick-ups come with a cost. E-commerce companies might decide to limit this option to higher-value customers.

• Consider using middle-mile consolidation. Middle-mile consolidation, in which returns are collected and sorted at high-volume processing centers, results in consolidated pallets of packages that cost less to ship, Ramachandran says.

This approach also presents opportunities to leverage different options for processing, such as routing higher-velocity or higher-value items so they’re returned to stock more quickly.

• Pre-print sparingly. Including pre-printed return labels with every order adds cost and complexity, as it requires including tracking numbers and barcodes in both the client’s and the carrier’s systems, Nelson says. This generates vast amounts of extraneous data if the labels aren’t used.

It’s generally more efficient to leverage technology that allows customers to print return labels once they initiate a return, he adds.

• Maximize in-store operations for returns. Ecommerce retailers with brick-and-mortar stores will benefit by implementing in-store returns procedures. When stores lack these policies, items can linger, depreciating in value and moving out of season, further cutting into potential recovery, Walkley says.

Training store employees on handling returns can make a huge difference in effectiveness, she adds.

Technology can also help here. Some reverse logistics systems offer decision engines that can help store associates determine how to handle different returns, says Guiste of Zebra.

For example, once an associate enters information on an item, an engine might let the associate know whether the return requires refurbishing. Soon, generative AI may make this even easier. An associate may be able to essentially converse with the system, which then will offer directions for handling the return.

A Renewed Focus on Reverse Logistics

While most e-commerce companies have highly calibrated and optimized efforts to protect product margins on the outbound side—such as aggressively negotiating with carriers and suppliers for lower rates and prices—the same attention is not always paid to reverse logistics.

Applying a similar focus to the reverse logistics function offers several crucial benefits, including optimizing inventory, salvaging potential value from returned items, and enhancing customer satisfaction by streamlining the return experience.

Reverse logistics is also a strategic move toward cost-efficiency, says Nelson: “There is a substantial amount of bleeding that happens on the return and reverse logistics side that needs to be accounted for.”


Giving Returns a Second Life Through Resale and Donation

One innovative way that e-tailers can boost recovery from returns is by leveraging the resale market. By 2027, the global second-hand market will almost double, hitting $350 billion, and in 2022, 52% of U.S. consumers shopped second-hand, according to ThredUp, an online second-hand retailer.

Reselling returns is also better for the environment. Some sustainability-focused brands, like Patagonia, feature sections of “gently used” merchandise on their websites—and this approach is gaining popularity.

Making it easier for consumers to donate items instead of returning is another smart choice gaining traction. Donation can both lower costs and help those in need, says Vijay Ramachandran, vice president of go-to-market enablement and experience for Pitney Bowes.

An effective process for donating returns requires aligning both consumers’ and retailers’ incentives, he notes. Consumer incentives may include credits for their purchases, and the satisfaction of ensuring their items do not end up in a landfill. Retailers’ incentives would be lowering returns costs, as well as minimizing their environmental footprint, Ramachandran notes.


The post Reverse Logistics: Curing the Holiday Returns Hangover appeared first on Inbound Logistics.

]]>
The Fast Fashion Fallout: The Circular Economy and the Future of Sustainability in the Fashion Industry https://www.inboundlogistics.com/articles/the-fast-fashion-fallout-the-circular-economy-and-the-future-of-sustainability-in-the-fashion-industry/ Tue, 12 Sep 2023 17:43:07 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37882 A U.S. survey of young adults revealed that 80% of them are willing to shell out extra money to own more sustainable products. But since apparel companies can funnel a steady supply of reasonably priced customer returns and excess stock into the secondary market, young shoppers may not need to do so.

Economic benefits of sustainable practices

From production to retailing, the negative environmental effects of fast fashion are apparent. We know that it’s not sustainable for businesses to maintain the level of production required to meet current demand.

Additionally, activities upstream from garment manufacturing—fabric production, preparation, and processing—accounted for 70% of the industry’s total GHG emissions. 

As garments fade into obsolescence, retailers are left holding large amounts of unsold inventory. With few options for managing this excess until relatively recently, it’s clear why the fashion industry is tied so closely to environmental pollution. Fortunately, there is a business case to be made for sustainability.

By optimizing resource usage and reducing waste, fashion companies can save costs and improve their bottom line. Doing so can even open up new customer segments and drive sales growth.

Sustainability is increasingly important to consumers, and many actively seek out environmentally and socially responsible brands. By adopting sustainable practices, fashion companies can grab the attention of conscious consumers who prioritize ethical products.

The role of the secondary market in reducing waste

Simply put, recommerce promotes a circular economy, a model that strives to minimize waste and maximize the use of resources by keeping items in consumers’ hands for as long as possible.

In the context of fashion, this means shifting away from the traditional linear model of “take, make, dispose” towards a system that prioritizes recycling, upcycling, and reusing garments. 

With the rise of online platforms and marketplaces dedicated to recommerce and flourishing resale businesses, consumers now have easier access to second-hand fashion than ever before.

This shift in consumer behavior not only extends the lifecycle of garments but also reduces demand for new production, ultimately shrinking the industry’s carbon footprint. 

By tapping into the secondary market, retailers recoup value from returned and excess inventory while keeping these items in use and out of landfills.

Using a value recovery platform, retailers can sustainably sell amounts of surplus that would overwhelm traditional liquidation methods—all while cutting disposal fees, inventory carrying costs, and remarketing efforts required to put items back on shelves. 

The future of sustainability in the fashion industry

Consumer brands will continue to embrace sustainable thinking throughout the entire supply chain.

We’ve seen big players step up to the plate already. Nike has committed to using 100% renewable energy in its factories by 2025. Zara has pledged to use only organic or recycled cotton, linen, and polyester to create garments by 2025, along with the complete adoption of green-only packaging. 

It’s a changing narrative, as 58% of Gen Z and Millennials understand their closets contribute to climate change, compared to 43% of consumers overall. This demonstrates a growing sense of environmental responsibility among consumers that will drive change in the industry.

 The future of sustainability in the fashion industry lies in adopting a circular economy approach. By embracing recommerce, addressing textile waste, and promoting collaboration—by brands, manufacturers, consumers, and policymakers—the industry can transition towards a more sustainable and responsible future.

About the author:

Marcus Shen is the CEO of B-Stock, a B2B marketplace space and specialist in excess stock monetization for returned and slow-moving stock, regardless of the category, quantity, condition, or location.

The post The Fast Fashion Fallout: The Circular Economy and the Future of Sustainability in the Fashion Industry appeared first on Inbound Logistics.

]]>
A U.S. survey of young adults revealed that 80% of them are willing to shell out extra money to own more sustainable products. But since apparel companies can funnel a steady supply of reasonably priced customer returns and excess stock into the secondary market, young shoppers may not need to do so.

Economic benefits of sustainable practices

From production to retailing, the negative environmental effects of fast fashion are apparent. We know that it’s not sustainable for businesses to maintain the level of production required to meet current demand.

Additionally, activities upstream from garment manufacturing—fabric production, preparation, and processing—accounted for 70% of the industry’s total GHG emissions. 

As garments fade into obsolescence, retailers are left holding large amounts of unsold inventory. With few options for managing this excess until relatively recently, it’s clear why the fashion industry is tied so closely to environmental pollution. Fortunately, there is a business case to be made for sustainability.

By optimizing resource usage and reducing waste, fashion companies can save costs and improve their bottom line. Doing so can even open up new customer segments and drive sales growth.

Sustainability is increasingly important to consumers, and many actively seek out environmentally and socially responsible brands. By adopting sustainable practices, fashion companies can grab the attention of conscious consumers who prioritize ethical products.

The role of the secondary market in reducing waste

Simply put, recommerce promotes a circular economy, a model that strives to minimize waste and maximize the use of resources by keeping items in consumers’ hands for as long as possible.

In the context of fashion, this means shifting away from the traditional linear model of “take, make, dispose” towards a system that prioritizes recycling, upcycling, and reusing garments. 

With the rise of online platforms and marketplaces dedicated to recommerce and flourishing resale businesses, consumers now have easier access to second-hand fashion than ever before.

This shift in consumer behavior not only extends the lifecycle of garments but also reduces demand for new production, ultimately shrinking the industry’s carbon footprint. 

By tapping into the secondary market, retailers recoup value from returned and excess inventory while keeping these items in use and out of landfills.

Using a value recovery platform, retailers can sustainably sell amounts of surplus that would overwhelm traditional liquidation methods—all while cutting disposal fees, inventory carrying costs, and remarketing efforts required to put items back on shelves. 

The future of sustainability in the fashion industry

Consumer brands will continue to embrace sustainable thinking throughout the entire supply chain.

We’ve seen big players step up to the plate already. Nike has committed to using 100% renewable energy in its factories by 2025. Zara has pledged to use only organic or recycled cotton, linen, and polyester to create garments by 2025, along with the complete adoption of green-only packaging. 

It’s a changing narrative, as 58% of Gen Z and Millennials understand their closets contribute to climate change, compared to 43% of consumers overall. This demonstrates a growing sense of environmental responsibility among consumers that will drive change in the industry.

 The future of sustainability in the fashion industry lies in adopting a circular economy approach. By embracing recommerce, addressing textile waste, and promoting collaboration—by brands, manufacturers, consumers, and policymakers—the industry can transition towards a more sustainable and responsible future.

About the author:

Marcus Shen is the CEO of B-Stock, a B2B marketplace space and specialist in excess stock monetization for returned and slow-moving stock, regardless of the category, quantity, condition, or location.

The post The Fast Fashion Fallout: The Circular Economy and the Future of Sustainability in the Fashion Industry appeared first on Inbound Logistics.

]]>
Managing the Return Trip https://www.inboundlogistics.com/articles/managing-the-return-trip/ Thu, 20 Jul 2023 15:45:13 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37224

THE CUSTOMER:

Samsonite International is a luggage manufacturer and retailer engaged in the design, manufacture, sourcing and distribution of luggage, assorted bags, and travel accessories throughout the world. Founded in Denver in 1910, the company’s registered office is currently in Luxembourg City, Luxembourg. It operates under the Samsonite name as well as a variety of other owned and licensed brand names.

THE PROVIDER:

ReverseLogix, headquartered in Burlingame, California, is an end-to-end, centralized, and fully integrated returns management system built specifically for retail, ecommerce, manufacturing and third-party logistics organizations.


“Our consumer journey wasn’t super user-friendly,” says Julie Senterfitt, consumer experience manager at Samsonite. “We didn’t have a lot of reporting, or the ability to track a lot of things.” The company was especially interested in improving its warranty claims and repairs process.

Samsonite lacked visibility into what consumers experienced when they initiated a warranty.

“It was critical for us to develop a tool that would enable us to see consumer behavior related to the warranty,” says Stephanie Kalch, senior director of customer service of North America at Samsonite. “It would not only provide a better consumer experience, but also give us the information to make a better product.”

Samsonite is likely the most recognized name in luggage. But parent company Samsonite International S.A. also represents Tumi, American Tourister, Gregory, High Sierra, Kamiliant, ebags, Lipault, and Hartmann, among other owned and licensed brands. The company designs, manufactures, sources, and distributes luggage as well as business and computer bags, outdoor and casual bags, plus travel accessories throughout the world.

FIRST MILES

Samsonite surveyed the market to understand what types of returns management systems were available.

“It was key for us to find a solution that could easily integrate into our other systems, such as Salesforce and SAP,” explains Kalch. When they met with the ReverseLogix team and were introduced to their returns management system (RMS), Samsonite knew they had found the answer to their problems.

“Samsonite’s return and warranty process from the customer’s perspective was cumbersome and manual, so they needed a better front experience for the customer,” explains Chuck Fuerst, chief marketing officer at ReverseLogix.

Whether business-to-business, business-to-consumer, or hybrid, the ReverseLogix platform facilitates, manages, and reports on the entire returns lifecycle.

Once Samsonite implemented the ReverseLogix RMS, customers were subsequently able to go onto Samsonite brand sites and self-activate their warranties rather than rely on the company’s call or repair centers.

Meanwhile, Samsonite gained instant visibility into their returns and warranty volume in ways they never had before.

“We wanted to offer our customers a better warranty experience through a customer-centered interface,” says Kalch. ReverseLogix RMS helped the company achieve this initial goal, but it was only the beginning. The platform also provides Samsonite with detailed insight into the specifics of products being returned.

Samsonite can now spot trends if certain luggage components repeatedly register as needing repair. They can determine if a circumstance—for example, a faulty wheel or a broken zipper—is an isolated incident or a potential design flaw that needs to be addressed from a manufacturing standpoint.

This visibility equips Samsonite with the data to analyze and predict future warranty claims and consumer behavior, enhancing the company’s knowledge of product performance across the entire consumer journey and influencing future decisions.

FRIENDS ALONG THE WAY

The experience Samsonite customers have at repair centers is central to the overall brand experience. The company operates 400-plus authorized repair centers that run the gamut from independent mom-and-pops to actual Samsonite stores. Sometimes the store might only be a drop-off point but it saves the customer from having to package and ship a warranty repair to an authorized center themselves.

“Samsonite needed a platform that could help them manage the actual repair and returns process,” says Fuerst.

Service Centers also Benefit

While they’ve gained insight since implementing ReverseLogix RMS, Samsonite’s customers and service centers have benefitted, too. For starters, customers can now see if an authorized repair center is nearby.

“Samsonite also uses the solution at the service center level,” explains Fuerst. “The service centers’ experience and process associated with managing the repair volumes coming into their sites has impacted their businesses; it has sped up their ability to do intake or repair, as well as keep customers informed.”

The days of a customer not knowing the timeline of luggage repair are gone. “With our platform deployed in those service centers, Samsonite can keep customers automatically informed about what’s going on in terms of where their luggage is and each step of the process,” says Fuerst.

Even if a customer brings in a suitcase for repair that is out of warranty, Samsonite can still provide a quote or an estimate on parts. “What it would take to repair such an item is also in the ReverseLogix platform, so it greatly reduces the volume of calls or emails into the service centers because customers are kept in the loop,” says Fuerst.

FORKS IN THE ROAD

Having third-party repair sites gives Samsonite the ability to provide better coverage in terms of service but it does add a layer of complexity. It can be a challenge for any company to provide a consistent experience across a network of sites versus one or two central locations. The ReverseLogix platform enables Samsonite to address any difficulties that arise.

“By being able to track the productivity of repair centers, the Samsonite team can hold service centers accountable to quality assurance and turnaround time to ensure customers get their bags fixed and back in their hands quickly,” says Kalch. Onboarding new repair centers has become a much simpler process as well.

Visibility into what’s happening at the service center level allows Samsonite to determine if certain luggage components frequently need repair. They can then ensure the necessary parts are in good supply to keep the whole process on track. Such information could influence future design decisions.

“ReverseLogix allows us to hold ourselves, as well as our partners, accountable and helps us make sure we’re spending money in the right place,” says Senterfitt.

The fact that luggage has a long shelf life further complicates matters. Even if used frequently, years can pass before people consider buying a new piece and that doesn’t account for potentially long periods when it’s stored away.

However, Samsonite strives to repair and provide service around all its luggage no matter how seasoned it might be. It’s a characteristic of the brand whose name is synonymous with luggage.

“The analytics we’ve gained by implementing ReverseLogix RMS have enabled us to see trends across all our brands,” says Kalch. “Before, in our paper process, we could only see the component usage that we had.

“Now we’re able to know the brands, the collections, the components, the reasons for the breakage,” she adds. “It has enhanced our knowledge of how our products are doing out in the real world.”

ON THE HORIZON

Now that their new warranty and repair portal has proven to be a success, Samsonite is looking to scale the solution to include all of their consumer touchpoints and communications. They want to address ecommerce returns management to achieve a consistent experience for customers who buy a brand-new piece of luggage and then, for whatever reason, decide to send it back.

They also want to address ecommerce sales because Samsonite sells through different channels, such as Amazon, in addition to their own. They want to be able to manage all their ecommerce, and the accompanying returns process, through one platform.

“Samsonite now has a solid footing to build off of,” says Fuerst. “The ReverseLogix platform is configurable. That’s one of its strengths. It’s designed to be adaptable and its configurable workflows easily align with many different product types.”


Case Study: A Worthwhile Journey

The Challenge

Samsonite, a leading luggage and travel gear manufacturer and retailer, wanted to enhance its warranty claims and repairs process in order to take its customer service to a new level.

The Solution

Samsonite engaged ReverseLogix and implemented its comprehensive returns management system (RMS), which provided insight into the customer experience through an intuitive and flexible SaaS platform.

The Results

Customer experience around Samsonite’s warranty and repair process has greatly improved. Warranty repairs typically get turned around in 24 hours because of the visibility Samsonite has gained into activity at the service center level.

Next Steps

Samsonite plans to scale ecommerce returns and ecommerce sales management using the ReverseLogix platform.


The post Managing the Return Trip appeared first on Inbound Logistics.

]]>

THE CUSTOMER:

Samsonite International is a luggage manufacturer and retailer engaged in the design, manufacture, sourcing and distribution of luggage, assorted bags, and travel accessories throughout the world. Founded in Denver in 1910, the company’s registered office is currently in Luxembourg City, Luxembourg. It operates under the Samsonite name as well as a variety of other owned and licensed brand names.

THE PROVIDER:

ReverseLogix, headquartered in Burlingame, California, is an end-to-end, centralized, and fully integrated returns management system built specifically for retail, ecommerce, manufacturing and third-party logistics organizations.


“Our consumer journey wasn’t super user-friendly,” says Julie Senterfitt, consumer experience manager at Samsonite. “We didn’t have a lot of reporting, or the ability to track a lot of things.” The company was especially interested in improving its warranty claims and repairs process.

Samsonite lacked visibility into what consumers experienced when they initiated a warranty.

“It was critical for us to develop a tool that would enable us to see consumer behavior related to the warranty,” says Stephanie Kalch, senior director of customer service of North America at Samsonite. “It would not only provide a better consumer experience, but also give us the information to make a better product.”

Samsonite is likely the most recognized name in luggage. But parent company Samsonite International S.A. also represents Tumi, American Tourister, Gregory, High Sierra, Kamiliant, ebags, Lipault, and Hartmann, among other owned and licensed brands. The company designs, manufactures, sources, and distributes luggage as well as business and computer bags, outdoor and casual bags, plus travel accessories throughout the world.

FIRST MILES

Samsonite surveyed the market to understand what types of returns management systems were available.

“It was key for us to find a solution that could easily integrate into our other systems, such as Salesforce and SAP,” explains Kalch. When they met with the ReverseLogix team and were introduced to their returns management system (RMS), Samsonite knew they had found the answer to their problems.

“Samsonite’s return and warranty process from the customer’s perspective was cumbersome and manual, so they needed a better front experience for the customer,” explains Chuck Fuerst, chief marketing officer at ReverseLogix.

Whether business-to-business, business-to-consumer, or hybrid, the ReverseLogix platform facilitates, manages, and reports on the entire returns lifecycle.

Once Samsonite implemented the ReverseLogix RMS, customers were subsequently able to go onto Samsonite brand sites and self-activate their warranties rather than rely on the company’s call or repair centers.

Meanwhile, Samsonite gained instant visibility into their returns and warranty volume in ways they never had before.

“We wanted to offer our customers a better warranty experience through a customer-centered interface,” says Kalch. ReverseLogix RMS helped the company achieve this initial goal, but it was only the beginning. The platform also provides Samsonite with detailed insight into the specifics of products being returned.

Samsonite can now spot trends if certain luggage components repeatedly register as needing repair. They can determine if a circumstance—for example, a faulty wheel or a broken zipper—is an isolated incident or a potential design flaw that needs to be addressed from a manufacturing standpoint.

This visibility equips Samsonite with the data to analyze and predict future warranty claims and consumer behavior, enhancing the company’s knowledge of product performance across the entire consumer journey and influencing future decisions.

FRIENDS ALONG THE WAY

The experience Samsonite customers have at repair centers is central to the overall brand experience. The company operates 400-plus authorized repair centers that run the gamut from independent mom-and-pops to actual Samsonite stores. Sometimes the store might only be a drop-off point but it saves the customer from having to package and ship a warranty repair to an authorized center themselves.

“Samsonite needed a platform that could help them manage the actual repair and returns process,” says Fuerst.

Service Centers also Benefit

While they’ve gained insight since implementing ReverseLogix RMS, Samsonite’s customers and service centers have benefitted, too. For starters, customers can now see if an authorized repair center is nearby.

“Samsonite also uses the solution at the service center level,” explains Fuerst. “The service centers’ experience and process associated with managing the repair volumes coming into their sites has impacted their businesses; it has sped up their ability to do intake or repair, as well as keep customers informed.”

The days of a customer not knowing the timeline of luggage repair are gone. “With our platform deployed in those service centers, Samsonite can keep customers automatically informed about what’s going on in terms of where their luggage is and each step of the process,” says Fuerst.

Even if a customer brings in a suitcase for repair that is out of warranty, Samsonite can still provide a quote or an estimate on parts. “What it would take to repair such an item is also in the ReverseLogix platform, so it greatly reduces the volume of calls or emails into the service centers because customers are kept in the loop,” says Fuerst.

FORKS IN THE ROAD

Having third-party repair sites gives Samsonite the ability to provide better coverage in terms of service but it does add a layer of complexity. It can be a challenge for any company to provide a consistent experience across a network of sites versus one or two central locations. The ReverseLogix platform enables Samsonite to address any difficulties that arise.

“By being able to track the productivity of repair centers, the Samsonite team can hold service centers accountable to quality assurance and turnaround time to ensure customers get their bags fixed and back in their hands quickly,” says Kalch. Onboarding new repair centers has become a much simpler process as well.

Visibility into what’s happening at the service center level allows Samsonite to determine if certain luggage components frequently need repair. They can then ensure the necessary parts are in good supply to keep the whole process on track. Such information could influence future design decisions.

“ReverseLogix allows us to hold ourselves, as well as our partners, accountable and helps us make sure we’re spending money in the right place,” says Senterfitt.

The fact that luggage has a long shelf life further complicates matters. Even if used frequently, years can pass before people consider buying a new piece and that doesn’t account for potentially long periods when it’s stored away.

However, Samsonite strives to repair and provide service around all its luggage no matter how seasoned it might be. It’s a characteristic of the brand whose name is synonymous with luggage.

“The analytics we’ve gained by implementing ReverseLogix RMS have enabled us to see trends across all our brands,” says Kalch. “Before, in our paper process, we could only see the component usage that we had.

“Now we’re able to know the brands, the collections, the components, the reasons for the breakage,” she adds. “It has enhanced our knowledge of how our products are doing out in the real world.”

ON THE HORIZON

Now that their new warranty and repair portal has proven to be a success, Samsonite is looking to scale the solution to include all of their consumer touchpoints and communications. They want to address ecommerce returns management to achieve a consistent experience for customers who buy a brand-new piece of luggage and then, for whatever reason, decide to send it back.

They also want to address ecommerce sales because Samsonite sells through different channels, such as Amazon, in addition to their own. They want to be able to manage all their ecommerce, and the accompanying returns process, through one platform.

“Samsonite now has a solid footing to build off of,” says Fuerst. “The ReverseLogix platform is configurable. That’s one of its strengths. It’s designed to be adaptable and its configurable workflows easily align with many different product types.”


Case Study: A Worthwhile Journey

The Challenge

Samsonite, a leading luggage and travel gear manufacturer and retailer, wanted to enhance its warranty claims and repairs process in order to take its customer service to a new level.

The Solution

Samsonite engaged ReverseLogix and implemented its comprehensive returns management system (RMS), which provided insight into the customer experience through an intuitive and flexible SaaS platform.

The Results

Customer experience around Samsonite’s warranty and repair process has greatly improved. Warranty repairs typically get turned around in 24 hours because of the visibility Samsonite has gained into activity at the service center level.

Next Steps

Samsonite plans to scale ecommerce returns and ecommerce sales management using the ReverseLogix platform.


The post Managing the Return Trip appeared first on Inbound Logistics.

]]>
Embracing the Opportunity in Returns https://www.inboundlogistics.com/articles/embracing-the-opportunity-in-returns/ Mon, 10 Apr 2023 17:47:49 +0000 https://www.inboundlogistics.com/?post_type=articles&p=36447 Looking ahead, the winners will be those who rethink every aspect of their returns logistics process, making it more seamless for consumers, carriers, and themselves. Here are a few key trends that are reshaping the reverse logistics space.

Loyalty programs. In an effort to claw back losses and deter returns from happening in the first place, some retailers, like H&M and Zara, have begun charging customers for online returns. But rather than punishing all customers for the actions of abusive returners, a more strategic tactic is to take a loyalty approach with returns.

Free Perks for Customers

Retailers could consider segmenting returns into tiers where better customers—based on how much they spend annually and how often they return—get perks that could include free shipping or more lenient returns policies.

DSW, Best Buy, and Saks are among the retailers beginning to take these steps. This is a better strategy to retain lifetime customers.

Doorstep pickups for returns. There has been much innovation in retail delivery convenience over the years, but there has been a huge gap on the other end with returns. Now, innovative retailers are providing customers with the option to have returns picked up from their doorstep.

A Smart Strategy

Considering that the returns process is a critical part of the purchase decision for consumers and their ongoing relationship with the brand, this is a smart strategy. In fact, 86% of respondents to a Pollen Returns survey say they feel more comfortable shopping with a retailer who offered complimentary front door pickup for every return. And 61% say that having to print a label, then bring returns back to a logistics provider, such as UPS or FedEx, is the most inconvenient aspect of the returns experience.

Technology partners are critical. Transforming the return problem into a solution that recaptures customers and dollars requires technology partners that provide retailers with the ability to make data-driven decisions to improve efficiencies. The good news for retailers is that such data-driven solutions are emerging, providing insight into each individual customer’s shopping habits to help curb excess and fraudulent returns.

Returns Impact Loyalty

Retailers should let go of any notion that we will eliminate returns altogether. Even with best efforts, returns have only continued to increase over the years.

Rather, we need to embrace the opportunity in returns. Returns are a part of shopping culture and play a major role in consumer purchasing decisions. How retailers handle returns is a reflection of the shopping experience itself and has a large impact on a customer’s loyalty to a brand.

Research from Invesp shows that 92% of consumers who have a positive return experience revisit brands for another purchase.

As we forge ahead into a post-pandemic world, the winners in the retail sector will be those who place the customer first and make data driven decisions that adapt their reverse supply chains to their strategic advantage.

The post Embracing the Opportunity in Returns appeared first on Inbound Logistics.

]]>
Looking ahead, the winners will be those who rethink every aspect of their returns logistics process, making it more seamless for consumers, carriers, and themselves. Here are a few key trends that are reshaping the reverse logistics space.

Loyalty programs. In an effort to claw back losses and deter returns from happening in the first place, some retailers, like H&M and Zara, have begun charging customers for online returns. But rather than punishing all customers for the actions of abusive returners, a more strategic tactic is to take a loyalty approach with returns.

Free Perks for Customers

Retailers could consider segmenting returns into tiers where better customers—based on how much they spend annually and how often they return—get perks that could include free shipping or more lenient returns policies.

DSW, Best Buy, and Saks are among the retailers beginning to take these steps. This is a better strategy to retain lifetime customers.

Doorstep pickups for returns. There has been much innovation in retail delivery convenience over the years, but there has been a huge gap on the other end with returns. Now, innovative retailers are providing customers with the option to have returns picked up from their doorstep.

A Smart Strategy

Considering that the returns process is a critical part of the purchase decision for consumers and their ongoing relationship with the brand, this is a smart strategy. In fact, 86% of respondents to a Pollen Returns survey say they feel more comfortable shopping with a retailer who offered complimentary front door pickup for every return. And 61% say that having to print a label, then bring returns back to a logistics provider, such as UPS or FedEx, is the most inconvenient aspect of the returns experience.

Technology partners are critical. Transforming the return problem into a solution that recaptures customers and dollars requires technology partners that provide retailers with the ability to make data-driven decisions to improve efficiencies. The good news for retailers is that such data-driven solutions are emerging, providing insight into each individual customer’s shopping habits to help curb excess and fraudulent returns.

Returns Impact Loyalty

Retailers should let go of any notion that we will eliminate returns altogether. Even with best efforts, returns have only continued to increase over the years.

Rather, we need to embrace the opportunity in returns. Returns are a part of shopping culture and play a major role in consumer purchasing decisions. How retailers handle returns is a reflection of the shopping experience itself and has a large impact on a customer’s loyalty to a brand.

Research from Invesp shows that 92% of consumers who have a positive return experience revisit brands for another purchase.

As we forge ahead into a post-pandemic world, the winners in the retail sector will be those who place the customer first and make data driven decisions that adapt their reverse supply chains to their strategic advantage.

The post Embracing the Opportunity in Returns appeared first on Inbound Logistics.

]]>
Are Labor Shortages Straining Your E-Commerce Business? Strengthen Operations with an Automated Returns Management System https://www.inboundlogistics.com/articles/are-labor-shortages-straining-your-e-commerce-business-strengthen-operations-with-an-automated-returns-management-system/ Mon, 29 Aug 2022 20:56:25 +0000 https://www.inboundlogistics.com/?post_type=articles&p=34243 These days, returns have become a non-negotiable standard part of the e-commerce experience for B2C and B2B customers alike and are a key factor for vendors looking to maintain customer satisfaction and increase loyalty. While they can be costly and laborious, successful returns processes can showcase customer service, achieve long-term consumer loyalty, and provide invaluable insights into behaviors and trends. 

The Problem

According to the Bureau of Labor Statistics, 4.4 million Americans quit their jobs in February 2022, with more than 11.3 million job openings that need to be filled. These labor shortages put a strain on companies still leveraging outdated manual returns processes, all while e-commerce sales boomed and product returns totaled more than 16.6% of U.S. retail sales. Without the necessary manpower, costs will inevitably rise, customer satisfaction will decrease, and even cases of fraudulent returns will increase. 

Recent data from the National Retail Federation show that 10.6% of online returns are fraudulent. The study also indicates that, at an average retail salary of $35,800 per year, return fraud costs American workers the equivalent of more than two million jobs and accounts for $5 billion in lost sales tax revenue in the United States.

Automation to Become the New Standard

Fully automated returns management solutions (RMS) are the key to successful and seamless returns; they provide data that tracks user-specific return patterns and help businesses understand consumer behavior. These patterns help determine which returns are caused by user error and which are issues that need to be corrected on the producer’s side.

Based on the patterns, they can distinguish these reasons from each other to determine which causes can be corrected at their end (sizing chart, more detailed descriptions, color representations, etc.) and which ones might require policy creation.

Once this actionable data is collected and stored in a centralized database, companies have a 360-degree understanding of the “why” behind these returns and are more empowered to make better, more informed business decisions. Some of the biggest challenges facing many companies include high return processing costs, large order volumes, and tight turnarounds.

Sometimes, it costs a company more money to process a return than to offer a refund, allow the customer to keep their product and send a replacement. These insights also reveal the costs of receiving, handling, repairing, replacing, and shipping: valuable information that can be used to identify unnecessarily high operating costs and specific areas that need extra support.   

In addition to understanding return patterns, these solutions conduct fraud checks and identify repeat offenders based on observed habits. Instead of changing the entire returns policy to prevent certain individuals from abusing the system (and potentially upsetting high-value customers), RMS analytics can identify and block these individuals—minimizing fraud and keeping loyal customers happy. 

Some businesses are even beginning to integrate AI and ML into their RMS, adding a deeper level of intelligence and data accumulation to the returns process. While these enhancements may be more of a futuristic goal for most, the solutions currently provided by automated returns management systems streamline logistics, increase productivity, and carve a pathway for further tech innovation. 

Implementing an RMS can immediately ease the stress of labor shortages as they provide a deeper look into the returns process and reduce the amount of necessary manual work. These innovative, advanced, and smart solutions can assist current employees, helping them work faster and more efficiently, maximizing time and logistics.

 

Gaurav Saran is CEO of ReverseLogix, a provider of end-to-end, centralized, and integrated returns management systems built for retail, e-commerce, manufacturing, and 3PL organizations.

 

The post Are Labor Shortages Straining Your E-Commerce Business? Strengthen Operations with an Automated Returns Management System appeared first on Inbound Logistics.

]]>
These days, returns have become a non-negotiable standard part of the e-commerce experience for B2C and B2B customers alike and are a key factor for vendors looking to maintain customer satisfaction and increase loyalty. While they can be costly and laborious, successful returns processes can showcase customer service, achieve long-term consumer loyalty, and provide invaluable insights into behaviors and trends. 

The Problem

According to the Bureau of Labor Statistics, 4.4 million Americans quit their jobs in February 2022, with more than 11.3 million job openings that need to be filled. These labor shortages put a strain on companies still leveraging outdated manual returns processes, all while e-commerce sales boomed and product returns totaled more than 16.6% of U.S. retail sales. Without the necessary manpower, costs will inevitably rise, customer satisfaction will decrease, and even cases of fraudulent returns will increase. 

Recent data from the National Retail Federation show that 10.6% of online returns are fraudulent. The study also indicates that, at an average retail salary of $35,800 per year, return fraud costs American workers the equivalent of more than two million jobs and accounts for $5 billion in lost sales tax revenue in the United States.

Automation to Become the New Standard

Fully automated returns management solutions (RMS) are the key to successful and seamless returns; they provide data that tracks user-specific return patterns and help businesses understand consumer behavior. These patterns help determine which returns are caused by user error and which are issues that need to be corrected on the producer’s side.

Based on the patterns, they can distinguish these reasons from each other to determine which causes can be corrected at their end (sizing chart, more detailed descriptions, color representations, etc.) and which ones might require policy creation.

Once this actionable data is collected and stored in a centralized database, companies have a 360-degree understanding of the “why” behind these returns and are more empowered to make better, more informed business decisions. Some of the biggest challenges facing many companies include high return processing costs, large order volumes, and tight turnarounds.

Sometimes, it costs a company more money to process a return than to offer a refund, allow the customer to keep their product and send a replacement. These insights also reveal the costs of receiving, handling, repairing, replacing, and shipping: valuable information that can be used to identify unnecessarily high operating costs and specific areas that need extra support.   

In addition to understanding return patterns, these solutions conduct fraud checks and identify repeat offenders based on observed habits. Instead of changing the entire returns policy to prevent certain individuals from abusing the system (and potentially upsetting high-value customers), RMS analytics can identify and block these individuals—minimizing fraud and keeping loyal customers happy. 

Some businesses are even beginning to integrate AI and ML into their RMS, adding a deeper level of intelligence and data accumulation to the returns process. While these enhancements may be more of a futuristic goal for most, the solutions currently provided by automated returns management systems streamline logistics, increase productivity, and carve a pathway for further tech innovation. 

Implementing an RMS can immediately ease the stress of labor shortages as they provide a deeper look into the returns process and reduce the amount of necessary manual work. These innovative, advanced, and smart solutions can assist current employees, helping them work faster and more efficiently, maximizing time and logistics.

 

Gaurav Saran is CEO of ReverseLogix, a provider of end-to-end, centralized, and integrated returns management systems built for retail, e-commerce, manufacturing, and 3PL organizations.

 

The post Are Labor Shortages Straining Your E-Commerce Business? Strengthen Operations with an Automated Returns Management System appeared first on Inbound Logistics.

]]>
Using AI for Critical Returns Management https://www.inboundlogistics.com/articles/using-ai-for-critical-returns-management/ Sun, 31 Jul 2022 19:10:58 +0000 https://www.inboundlogistics.com/?post_type=articles&p=34193 In 2021, U.S. returns rose to $761 billion annually, up 10.6% from the year before. And with that, retailers must consider AI-based automated returns solutions to manage the influx.

Artificial intelligence (AI) can tackle every aspect of returns processing, from shipping to disposition decisions to recommerce. It can also handle parts of the customer journey to prevent returns from occurring in the first place. AI is not a one-size-fits-all approach, but can be tailored to every organization.

AI disposition engines are one of the most crucial tools retailers can utilize in returns management. Retailers that employ this data-driven technology as early in the returns process as possible will see the most profound results.

AI disposition engines are applications that employees can use on desktops or handheld devices. They help workers make lightning-fast returns allocation decisions based on real-time data across millions of products.

In short, these applications move returns back into the supply chain as quickly as possible, in the most efficient way possible, at the highest recovery possible. They do this by analyzing a host of pertinent factors, including product condition, resale price, processing costs, number of touchpoints required, transportation fees, and storage requirements.

By simply scanning a product, AI disposition applications factor every returns management cost, telling workers precisely how to handle the product. Disposition paths include return to vendor, secondary marketplace listing, refurbishment, liquidation, parts harvesting, and recycling.

Disposition applications can help cut processing time by 75%, exponentially increasing their ability to recover higher profits from secondhand goods.

Virtual Fitting Rooms

In 2021, online purchases grew by 61% YoY, and consumers returned $218 billion of those orders. One main reason is that consumers struggle to make appropriate purchase decisions online because they lack access to critical information, like how an item will fit.

Images and descriptions are simply not enough, which is why consumers engage in widespread bracketing—buying more than one variation of the same item with the intent to return at least one.

Online shoppers say that 73% of their apparel returns are caused by their inability to try the clothes first. Yet only 7% have used virtual fitting rooms. That leaves a significant opportunity for omnichannel brands to find partners or develop their own AI-based dressing rooms.

Recommendation Engines

Before virtual fitting rooms, retailers could employ automated suggestions during the browsing phase of the shopping journey. Known as recommendation engines, these AI and machine learning tools instantly suggest products that align with the person’s preferences. These engines work by building customer profiles using a mix of consumer feedback, purchase history, and returns patterns.

Intelligent chatbots are another piece of technology that is imperative for online stores. This AI-based tool uses natural language processing to conduct customer conversations. Intelligent bots can tap into product information databases, consumer profiles, and purchase history to answer questions and make informed product recommendations.

Retailers can walk through any department and instantly see how AI can optimize their returns management strategy. Investment in AI engines allows organizations to do more with fewer workers while reducing return rates, raising the bar on customer satisfaction, and driving more traffic to their omnichannel storefronts. It’s a no-brainer—literally.

The post Using AI for Critical Returns Management appeared first on Inbound Logistics.

]]>
In 2021, U.S. returns rose to $761 billion annually, up 10.6% from the year before. And with that, retailers must consider AI-based automated returns solutions to manage the influx.

Artificial intelligence (AI) can tackle every aspect of returns processing, from shipping to disposition decisions to recommerce. It can also handle parts of the customer journey to prevent returns from occurring in the first place. AI is not a one-size-fits-all approach, but can be tailored to every organization.

AI disposition engines are one of the most crucial tools retailers can utilize in returns management. Retailers that employ this data-driven technology as early in the returns process as possible will see the most profound results.

AI disposition engines are applications that employees can use on desktops or handheld devices. They help workers make lightning-fast returns allocation decisions based on real-time data across millions of products.

In short, these applications move returns back into the supply chain as quickly as possible, in the most efficient way possible, at the highest recovery possible. They do this by analyzing a host of pertinent factors, including product condition, resale price, processing costs, number of touchpoints required, transportation fees, and storage requirements.

By simply scanning a product, AI disposition applications factor every returns management cost, telling workers precisely how to handle the product. Disposition paths include return to vendor, secondary marketplace listing, refurbishment, liquidation, parts harvesting, and recycling.

Disposition applications can help cut processing time by 75%, exponentially increasing their ability to recover higher profits from secondhand goods.

Virtual Fitting Rooms

In 2021, online purchases grew by 61% YoY, and consumers returned $218 billion of those orders. One main reason is that consumers struggle to make appropriate purchase decisions online because they lack access to critical information, like how an item will fit.

Images and descriptions are simply not enough, which is why consumers engage in widespread bracketing—buying more than one variation of the same item with the intent to return at least one.

Online shoppers say that 73% of their apparel returns are caused by their inability to try the clothes first. Yet only 7% have used virtual fitting rooms. That leaves a significant opportunity for omnichannel brands to find partners or develop their own AI-based dressing rooms.

Recommendation Engines

Before virtual fitting rooms, retailers could employ automated suggestions during the browsing phase of the shopping journey. Known as recommendation engines, these AI and machine learning tools instantly suggest products that align with the person’s preferences. These engines work by building customer profiles using a mix of consumer feedback, purchase history, and returns patterns.

Intelligent chatbots are another piece of technology that is imperative for online stores. This AI-based tool uses natural language processing to conduct customer conversations. Intelligent bots can tap into product information databases, consumer profiles, and purchase history to answer questions and make informed product recommendations.

Retailers can walk through any department and instantly see how AI can optimize their returns management strategy. Investment in AI engines allows organizations to do more with fewer workers while reducing return rates, raising the bar on customer satisfaction, and driving more traffic to their omnichannel storefronts. It’s a no-brainer—literally.

The post Using AI for Critical Returns Management appeared first on Inbound Logistics.

]]>
10 Tips: Optimizing E-Commerce Fulfillment Operations https://www.inboundlogistics.com/articles/10-tips-optimizing-e-commerce-fulfillment-operations/ Thu, 30 Jun 2022 20:48:55 +0000 https://www.inboundlogistics.com/?post_type=articles&p=33378 1. Allocate sufficient resources for fulfilling orders. Picking, packing, and shipping online orders is resource-intensive. E-commerce fulfillment operations can require two to three times the space and labor of traditional warehousing operations, so factor these requirements into your plans up front.


2. Maximize picking capacity. Design your warehouse to increase storage density and maximize picking capacity. E-commerce facility design typically incorporates higher ceiling heights (36 feet or higher), narrow aisles, and high-density storage solutions.

3. Plan for growth and fluctuations. Since your business is always growing and evolving, it is important to build flexibility into fulfillment operations. Design your fulfillment solution with scalable space, staffing, processes, and technologies, so you can ramp up and down quickly and easily. If you plan to add additional sales channels (i.e., brick-and-mortar stores, subscription services, third-party marketplaces), make sure your fulfillment operations can support multiple channels and order profiles. And always keep safety and ergonomics in mind as you design processes.

4. Invest in advanced technology. Automation, large-scale mechanization, and robotics can help fulfillment operations achieve peak performance. With the right solution, you can improve productivity, reduce labor dependency, control operational costs and flex to accommodate business fluctuations. When implementing new technology, make sure you have the right back-end infrastructure to support these initiatives—systems, leadership, etc.

5. Take a strategic distribution approach. The closer products are to the end customer, the faster and more economically they can be delivered. Utilizing two or more distribution centers in strategic locations can help you deliver orders to consumers more quickly and cost-effectively—often within two days via ground service. Another option is to locate your fulfillment centers to ensure ready access to parcel service providers.

6. Optimize inventory. Map out processes for receiving, replenishment, inventory slotting, and pack out to ensure optimal efficiency and service levels. If you store products in multiple locations, utilizing an order management system (OMS) can provide visibility enterprise-wide and help determine the optimal fulfillment source for each order. An OMS can also help you provide customers with real-time inventory availability and order tracking information.

7. Consider postponement. Moving value-added services such as kitting, labeling, and embroidery closer to the customer allows you to delay product configuration or customization until the last possible moment. This can often help you be more responsive to customer demand, better manage inventory, expand product offerings, and get to market faster.

8. Explore your parcel options. Record volume will continue to drive up parcel rates and surcharges, so your best bet to control costs is through efficiency and optimization. You may be able to broaden your carrier strategy with regional carriers or postal workshare options or take advantage of zone skipping to sortation hubs. Distribution modeling and rate shopping software can help to find the most efficient and cost-effective shipping options to meet service expectations.

9. Anticipate returns. To provide hassle-free returns and quick refunds, ensure that your information systems, distribution network and transportation capabilities work in tandem. Returns processing can be labor-intensive and require experienced employees with strong decision-making skills to evaluate merchandise and determine next steps, so factor that into your staffing plans.

10. Commit to continuous improvement. Look for ways to improve efficiency at every step in the fulfillment process. Quality methodologies such as Lean Six Sigma can help to increase efficiency, improve throughput, ensure accuracy, and control costs.

SOURCE: Bobby Hays, Regional Vice President, Operations, Saddle Creek Logistics Services

The post 10 Tips: Optimizing E-Commerce Fulfillment Operations appeared first on Inbound Logistics.

]]>
1. Allocate sufficient resources for fulfilling orders. Picking, packing, and shipping online orders is resource-intensive. E-commerce fulfillment operations can require two to three times the space and labor of traditional warehousing operations, so factor these requirements into your plans up front.


2. Maximize picking capacity. Design your warehouse to increase storage density and maximize picking capacity. E-commerce facility design typically incorporates higher ceiling heights (36 feet or higher), narrow aisles, and high-density storage solutions.

3. Plan for growth and fluctuations. Since your business is always growing and evolving, it is important to build flexibility into fulfillment operations. Design your fulfillment solution with scalable space, staffing, processes, and technologies, so you can ramp up and down quickly and easily. If you plan to add additional sales channels (i.e., brick-and-mortar stores, subscription services, third-party marketplaces), make sure your fulfillment operations can support multiple channels and order profiles. And always keep safety and ergonomics in mind as you design processes.

4. Invest in advanced technology. Automation, large-scale mechanization, and robotics can help fulfillment operations achieve peak performance. With the right solution, you can improve productivity, reduce labor dependency, control operational costs and flex to accommodate business fluctuations. When implementing new technology, make sure you have the right back-end infrastructure to support these initiatives—systems, leadership, etc.

5. Take a strategic distribution approach. The closer products are to the end customer, the faster and more economically they can be delivered. Utilizing two or more distribution centers in strategic locations can help you deliver orders to consumers more quickly and cost-effectively—often within two days via ground service. Another option is to locate your fulfillment centers to ensure ready access to parcel service providers.

6. Optimize inventory. Map out processes for receiving, replenishment, inventory slotting, and pack out to ensure optimal efficiency and service levels. If you store products in multiple locations, utilizing an order management system (OMS) can provide visibility enterprise-wide and help determine the optimal fulfillment source for each order. An OMS can also help you provide customers with real-time inventory availability and order tracking information.

7. Consider postponement. Moving value-added services such as kitting, labeling, and embroidery closer to the customer allows you to delay product configuration or customization until the last possible moment. This can often help you be more responsive to customer demand, better manage inventory, expand product offerings, and get to market faster.

8. Explore your parcel options. Record volume will continue to drive up parcel rates and surcharges, so your best bet to control costs is through efficiency and optimization. You may be able to broaden your carrier strategy with regional carriers or postal workshare options or take advantage of zone skipping to sortation hubs. Distribution modeling and rate shopping software can help to find the most efficient and cost-effective shipping options to meet service expectations.

9. Anticipate returns. To provide hassle-free returns and quick refunds, ensure that your information systems, distribution network and transportation capabilities work in tandem. Returns processing can be labor-intensive and require experienced employees with strong decision-making skills to evaluate merchandise and determine next steps, so factor that into your staffing plans.

10. Commit to continuous improvement. Look for ways to improve efficiency at every step in the fulfillment process. Quality methodologies such as Lean Six Sigma can help to increase efficiency, improve throughput, ensure accuracy, and control costs.

SOURCE: Bobby Hays, Regional Vice President, Operations, Saddle Creek Logistics Services

The post 10 Tips: Optimizing E-Commerce Fulfillment Operations appeared first on Inbound Logistics.

]]>
NOTED: The Supply Chain In Brief https://www.inboundlogistics.com/articles/the-supply-chain-in-brief-0422/ Thu, 05 May 2022 09:00:00 +0000 https://inboundlogisti.wpengine.com/articles/the-supply-chain-in-brief-0422/ Green Seeds
  • Maersk will add 300 electric trucks to its North America network—the largest heavy-duty electric truck deployment to date. The trucks will be delivered between 2023 and 2025 for use by Performance Team, Maersk’s North American warehousing, distribution, and transportation business. The trucks will be operated using technology company Einride’s digital road freight operating system and charging solutions.
  • The Massachusetts Port Authority (Massport) aims to reduce carbon emissions across all facilities and become net zero by 2031, coinciding with its 75th anniversary. Its agenda focuses on 100% of the greenhouse gas emissions directly controlled by Massport-owned facilities, equipment, and purchased electricity.
  • To increase traceability and transparency in its global palm oil supply chain, Unilever launched a pilot program of the GreenToken by SAP solution. Aiming to achieve sustainability benchmarks, Unilever applied GreenToken to source more than 188,000 tons of palm oil fruit through a pilot program conducted in Indonesia. The solution helps Unilever track, verify, and report the palm oil supply chain in near real time.

Up the Chain

  • General Motors named Jeffrey Morrison vice president, global purchasing and supply chain. In this role, he will develop supplier relationships and help the company accelerate electric vehicle (EV) launches, building a scalable and sustainable EV supply chain.
  • Outdoor specialty retailer Sportsman’s Warehouse Holdings appointed Tom Clement as vice president, supply chain/omnichannel operations. In this newly created role, he leads the company’s distribution, transportation, planning/allocation, and omnichannel operations.

M & A

  • Veho, a technology company that enables next-day package delivery, acquired reverse logistics startup QuikReturn. Veho plans to accelerate the Veho Returns product and expand into 50 U.S. markets by the end of 2022.
  • Deutsche Post DHL Group closed the acquisition of J.F. Hillebrand Group AG (Hillebrand) and its subsidiaries. Hillebrand is now part of DHL Global Forwarding, Freight.
  • AFS Logistics acquired DTA Services, a freight bill audit, cost allocation, and analytics firm located in Toronto. DTA will continue serving clients under its established brand as an AFS operating company and will maintain its current team, service offering, and location.
  • Dayton Freight Lines, a provider of regional less-than-truckload transportation services, purchased the cartage division of Valley Companies. Dayton Freight acquired Valley assets including service centers, trucks, and miscellaneous equipment; Valley Logistics and Warehousing is not part of the purchase.
  • Zebra Technologies plans to acquire Matrox Imaging, a developer of advanced machine vision components and systems, to expand its offerings in the automation and vision technology solution space.
  • Lineage Logistics acquired MTC Logistics, a cold chain provider with four locations on or near the ports of Baltimore, Maryland; Wilmington, Delaware; and Mobile, Alabama. Through the acquisition of these facilities, Lineage adds nearly 38 million cubic feet of capacity and more than 113,000 pallet positions in the United States.

Sealed Deals

  • Republic National Distributing Company, a wholesale beverage alcohol distributor, selected Manhattan Active Warehouse Management to run its growing supply chain network. The distributor selected the cloud-native solution from Manhattan Associates so it could focus on customer service and plans to roll it out in its distribution centers across North America over the next 30 months.
  • Consumer goods company Orkla chose HICX, a supplier management platform, to manage its increasingly complex supplier ecosystem and onboard new suppliers with as little operational disruption as possible. Orkla aims to remove friction points from supplier relationships and enable a single version of truth across all supplier data.
  • Southern Glazer’s Wine & Spirits, a distributor of beverage alcohol, selected Ryder System to restructure its inbound transportation and implement its visibility and collaborative logistics technology RyderShare. The distributor aims to make its inbound supply chain more efficient and resilient, in order to get its suppliers’ products to market even faster.

Good Works

  • The CMA CGM Foundation provided humanitarian supplies to Ukrainian civilians in partnership with the CDCS (Crisis and Support Centre of the French Ministry of Europe and Foreign Affairs). The CMA CGM Foundation completed an emergency shipment of 55 tons of humanitarian supplies, including food, tents, and medical equipment, via a cargo plane from Paris to Warsaw, Poland.
  • The Trucking Cares Foundation donated more than $40,000 to three organizations involved in Ukrainian humanitarian relief efforts: Save the Children, the International Red Cross, and the United Nations Children’s Fund. These organizations were recommended by the group Trucking & Logistics Professionals for Ukraine, which launched a fundraising and awareness campaign in response to the crisis.
  • Union Pacific donated $500,000 to humanitarian relief for Ukraine, its largest-ever corporate disaster relief donation. The funds will be divided between the American Red Cross and Save the Children and come after UP employees drove nearly $50,000 in matching donations from the company earlier in the year.

Recognition

  • EnerSys, a provider of stored energy solutions, earned the 2022 Most Valuable Supplier (MVS) Award from the Material Handling Equipment Distributors Association (MHEDA). Every year, MHEDA recognizes fewer than 10% of all member companies with the MVS Award to acknowledge suppliers that have demonstrated commitment to their dealer network, employees, and the community.
  • Roadrunner, a less-than-truckload (LTL) carrier, was recognized by Amazon with the On-Time Pickup Performance Award and the EDI Compliance Award. Roadrunner outperformed Amazon LTL carriers with a best-in-class on-time pickup rate and nabbed the second award with its efficient transmission of confidential data via EDI.
  • Leonard’s Express, a provider of refrigerated trucking, dry van, warehousing, and freight brokerage services, won the Trucking Association of New York’s (TANY) Fleet Safety Award in the large-class, general commodities truckload category. The TANY Fleet Safety Awards recognize member fleets with the best record of safe operation in New York State.

Shovel Ready

  • The Canaveral Port Authority broke ground on a $48-million project to rebuild Port Canaveral’s North Cargo Berth 3. Built in 1976, North Cargo Berth 3 has been out of service since 2014. Demolition of the existing pier began in December 2021; it will be replaced with an 880-foot-long multipurpose wharf with the channel width to accommodate larger cargo vessels simultaneously at berth.

The post NOTED: The Supply Chain In Brief appeared first on Inbound Logistics.

]]>
Green Seeds
  • Maersk will add 300 electric trucks to its North America network—the largest heavy-duty electric truck deployment to date. The trucks will be delivered between 2023 and 2025 for use by Performance Team, Maersk’s North American warehousing, distribution, and transportation business. The trucks will be operated using technology company Einride’s digital road freight operating system and charging solutions.
  • The Massachusetts Port Authority (Massport) aims to reduce carbon emissions across all facilities and become net zero by 2031, coinciding with its 75th anniversary. Its agenda focuses on 100% of the greenhouse gas emissions directly controlled by Massport-owned facilities, equipment, and purchased electricity.
  • To increase traceability and transparency in its global palm oil supply chain, Unilever launched a pilot program of the GreenToken by SAP solution. Aiming to achieve sustainability benchmarks, Unilever applied GreenToken to source more than 188,000 tons of palm oil fruit through a pilot program conducted in Indonesia. The solution helps Unilever track, verify, and report the palm oil supply chain in near real time.

Up the Chain

  • General Motors named Jeffrey Morrison vice president, global purchasing and supply chain. In this role, he will develop supplier relationships and help the company accelerate electric vehicle (EV) launches, building a scalable and sustainable EV supply chain.
  • Outdoor specialty retailer Sportsman’s Warehouse Holdings appointed Tom Clement as vice president, supply chain/omnichannel operations. In this newly created role, he leads the company’s distribution, transportation, planning/allocation, and omnichannel operations.

M & A

  • Veho, a technology company that enables next-day package delivery, acquired reverse logistics startup QuikReturn. Veho plans to accelerate the Veho Returns product and expand into 50 U.S. markets by the end of 2022.
  • Deutsche Post DHL Group closed the acquisition of J.F. Hillebrand Group AG (Hillebrand) and its subsidiaries. Hillebrand is now part of DHL Global Forwarding, Freight.
  • AFS Logistics acquired DTA Services, a freight bill audit, cost allocation, and analytics firm located in Toronto. DTA will continue serving clients under its established brand as an AFS operating company and will maintain its current team, service offering, and location.
  • Dayton Freight Lines, a provider of regional less-than-truckload transportation services, purchased the cartage division of Valley Companies. Dayton Freight acquired Valley assets including service centers, trucks, and miscellaneous equipment; Valley Logistics and Warehousing is not part of the purchase.
  • Zebra Technologies plans to acquire Matrox Imaging, a developer of advanced machine vision components and systems, to expand its offerings in the automation and vision technology solution space.
  • Lineage Logistics acquired MTC Logistics, a cold chain provider with four locations on or near the ports of Baltimore, Maryland; Wilmington, Delaware; and Mobile, Alabama. Through the acquisition of these facilities, Lineage adds nearly 38 million cubic feet of capacity and more than 113,000 pallet positions in the United States.

Sealed Deals

  • Republic National Distributing Company, a wholesale beverage alcohol distributor, selected Manhattan Active Warehouse Management to run its growing supply chain network. The distributor selected the cloud-native solution from Manhattan Associates so it could focus on customer service and plans to roll it out in its distribution centers across North America over the next 30 months.
  • Consumer goods company Orkla chose HICX, a supplier management platform, to manage its increasingly complex supplier ecosystem and onboard new suppliers with as little operational disruption as possible. Orkla aims to remove friction points from supplier relationships and enable a single version of truth across all supplier data.
  • Southern Glazer’s Wine & Spirits, a distributor of beverage alcohol, selected Ryder System to restructure its inbound transportation and implement its visibility and collaborative logistics technology RyderShare. The distributor aims to make its inbound supply chain more efficient and resilient, in order to get its suppliers’ products to market even faster.

Good Works

  • The CMA CGM Foundation provided humanitarian supplies to Ukrainian civilians in partnership with the CDCS (Crisis and Support Centre of the French Ministry of Europe and Foreign Affairs). The CMA CGM Foundation completed an emergency shipment of 55 tons of humanitarian supplies, including food, tents, and medical equipment, via a cargo plane from Paris to Warsaw, Poland.
  • The Trucking Cares Foundation donated more than $40,000 to three organizations involved in Ukrainian humanitarian relief efforts: Save the Children, the International Red Cross, and the United Nations Children’s Fund. These organizations were recommended by the group Trucking & Logistics Professionals for Ukraine, which launched a fundraising and awareness campaign in response to the crisis.
  • Union Pacific donated $500,000 to humanitarian relief for Ukraine, its largest-ever corporate disaster relief donation. The funds will be divided between the American Red Cross and Save the Children and come after UP employees drove nearly $50,000 in matching donations from the company earlier in the year.

Recognition

  • EnerSys, a provider of stored energy solutions, earned the 2022 Most Valuable Supplier (MVS) Award from the Material Handling Equipment Distributors Association (MHEDA). Every year, MHEDA recognizes fewer than 10% of all member companies with the MVS Award to acknowledge suppliers that have demonstrated commitment to their dealer network, employees, and the community.
  • Roadrunner, a less-than-truckload (LTL) carrier, was recognized by Amazon with the On-Time Pickup Performance Award and the EDI Compliance Award. Roadrunner outperformed Amazon LTL carriers with a best-in-class on-time pickup rate and nabbed the second award with its efficient transmission of confidential data via EDI.
  • Leonard’s Express, a provider of refrigerated trucking, dry van, warehousing, and freight brokerage services, won the Trucking Association of New York’s (TANY) Fleet Safety Award in the large-class, general commodities truckload category. The TANY Fleet Safety Awards recognize member fleets with the best record of safe operation in New York State.

Shovel Ready

  • The Canaveral Port Authority broke ground on a $48-million project to rebuild Port Canaveral’s North Cargo Berth 3. Built in 1976, North Cargo Berth 3 has been out of service since 2014. Demolition of the existing pier began in December 2021; it will be replaced with an 880-foot-long multipurpose wharf with the channel width to accommodate larger cargo vessels simultaneously at berth.

The post NOTED: The Supply Chain In Brief appeared first on Inbound Logistics.

]]>
What’s your best reverse logistics tip? https://www.inboundlogistics.com/articles/whats-your-best-reverse-logistics-tip/ https://www.inboundlogistics.com/articles/whats-your-best-reverse-logistics-tip/#respond Thu, 21 Apr 2022 07:00:00 +0000 https://inboundlogisti.wpengine.com/articles/whats-your-best-reverse-logistics-tip/

Invest in painless return solutions. Retailers and brands should implement solutions like physical drop-off locations that make returns more convenient for customers, helping them to compete with major players like Amazon and Walmart. Brands should keep a pulse on challenges in their returns processes and correct them in order to acquire and retain customers.

—Tierney Wilson
SVP, Consulting and Client Services
January Digital


Share the cost with commercial counterparts and invest in online merchandising. Measure the reduction in returns that comes from better product descriptions and photos, customer reviews and ratings, and demo videos.

—Dustin Burke
Global Co-Leader,
Manufacturing and Supply Chain,
Boston Consulting Group



Identify IoT and technology to collect essential data. Reverse logistics is essential to customer experience and to business success, involving repair, replacement, coordination between locations, information from service management and inventory systems.

—Sarah Nicastro
VP, Customer Advocacy, IFS
Creator, Future of Field Service


Provide labeling and packaging that make it easy for the consumer. If goods can be quickly received and routed, then half the battle is over.

—John Wirthlin
Industry Principal, Manufacturing,
Transportation and Logistics,
Zebra


Rather than dismissing returns as a cost additive, investigate how you can reduce costs while getting the items that can be re-sold back into stock sooner for resale. Are there ways to increase throughput, while reducing touches, like managing staff based on throughput goals and incentive-based pay?

—Harold Baro
SVP and General Manager
SIMOS Solutions – A TrueBlue Company


Document your return process and make it easy to find on your website. Include a return label and make durable packaging that’s easy to reuse. On the back end, use a strong forward/backward product tracking mechanism and processes to handle the repair, replacement, or recycling of the item being returned.

—Scott Hebert
CEO,
SYSPRO USA


Define the appropriate strategy for your products, processes, and customers. Reverse logistics is defined differently based on the industry-specific lens you view it through. Solutions are diverse across the products and services developing customer-centric processes.

—Andrew Moul
Director of Warehouse and Distribution Solutions
A. Duie Pyle


Ensure return shipments comply with all hazmat regulations. Simplify returns processes for customers, and ensure safe, compliant shipping, by giving them next-generation shipping boxes designed for shipping regulated materials (such as electronics containing lithium batteries) that arrive pre-assembled and pre-labeled with simple closure instructions.

—Brian Beetz
Director, Regulatory Affairs and Corporate Responsibility
Labelmaster


Find a workflow that encourages exchanges to keep the customer happy and also keeps their revenue in your business.

—Donny Salazar
Founder and CEO,
MasonHub


Seek solutions that automatically refresh inventory and financials to keep systems from accidentally selling inventory they don’t have in stock. Consumers today are buying products they can’t see or touch, so they order multiple versions of a product online and ultimately return all but one.

—Samuel Parker
Product Evangelist,
Cin7


View and optimize the entire reverse logistics process and not just single components. Allow technology to drive the optimal routing when the customer initiates a return.

—Steve Rop
Chief Operating Officer,
goTRG


Keep stock in good shape and get returned parts back into inventory. Sometimes returned parts may become a “hot” item and need to be picked again quickly. Getting them back into inventory as quickly as possible becomes key.

—Tony Oakes
Continuous Improvement Engineer
TA Services


Loop product data back to the original source. The way many companies currently manage their product data only allows for the one-directional flow of information from suppliers to buyers.

—Thomas Kasemir
Chief Product Officer,
Productsup


Avoid reverse logistics in the first place by having better upstream control. Ensure the right product and process quality control throughout the inbound flow, and you will take away key reasons for returning products.

—Elger Postma
Asia Commercial Head,
APL Logistics


Avoid it, at least where you can. Work to ensure that your customers are truly receiving what they want and that it will work for them. Whether it’s clothing that has a detailed size chart or technology that answers customers’ questions, make sure they are equipped with enough information so they’re certain they’re getting the right product.

—Nancy Korayim
Founder and CEO,
MetroSpeedy CX Strong Point


Don’t skimp on the customer experience for returns. It’s a unique opportunity to delight a customer under a non-ideal experience (no one likes returns), which generates super-fans for your brand.

—Chris Deck
CEO and Founder,
Deck Commerce


Make it easy for the customer. Provide simple access to labels and shipping, immediate credit for the returned product, and incentive to shop again. These simple steps build brand loyalty and positive customer sentiment, resulting in more purchases and product recommendations that offset any investment required to deliver this seamless experience.

—Laura Ritchey
COO,
Radial


Start with the goal of a great customer experience. A value-added returns process is aligned across all stages—beginning with clear instructions, expectations, and returns systemization for the customer; then creating seamless flow of product and information between returns fulfillment center, customer service, and outbound re-delivery functions, with meaningful visibility along the way.

—Brandon Feeler
Director of Client Solutions
Legacy Supply Chain


Have a great answer to a good question?

Be sure to participate next month. We want to know:

What’s the difference between traceability and transparency in the supply chain?

We’ll publish some answers. Tell us at editorial@inboundlogistics.com or tweet us @ILMagazine #ILgoodquestion.

 

The post What’s your best reverse logistics tip? appeared first on Inbound Logistics.

]]>

Invest in painless return solutions. Retailers and brands should implement solutions like physical drop-off locations that make returns more convenient for customers, helping them to compete with major players like Amazon and Walmart. Brands should keep a pulse on challenges in their returns processes and correct them in order to acquire and retain customers.

—Tierney Wilson
SVP, Consulting and Client Services
January Digital


Share the cost with commercial counterparts and invest in online merchandising. Measure the reduction in returns that comes from better product descriptions and photos, customer reviews and ratings, and demo videos.

—Dustin Burke
Global Co-Leader,
Manufacturing and Supply Chain,
Boston Consulting Group



Identify IoT and technology to collect essential data. Reverse logistics is essential to customer experience and to business success, involving repair, replacement, coordination between locations, information from service management and inventory systems.

—Sarah Nicastro
VP, Customer Advocacy, IFS
Creator, Future of Field Service


Provide labeling and packaging that make it easy for the consumer. If goods can be quickly received and routed, then half the battle is over.

—John Wirthlin
Industry Principal, Manufacturing,
Transportation and Logistics,
Zebra


Rather than dismissing returns as a cost additive, investigate how you can reduce costs while getting the items that can be re-sold back into stock sooner for resale. Are there ways to increase throughput, while reducing touches, like managing staff based on throughput goals and incentive-based pay?

—Harold Baro
SVP and General Manager
SIMOS Solutions – A TrueBlue Company


Document your return process and make it easy to find on your website. Include a return label and make durable packaging that’s easy to reuse. On the back end, use a strong forward/backward product tracking mechanism and processes to handle the repair, replacement, or recycling of the item being returned.

—Scott Hebert
CEO,
SYSPRO USA


Define the appropriate strategy for your products, processes, and customers. Reverse logistics is defined differently based on the industry-specific lens you view it through. Solutions are diverse across the products and services developing customer-centric processes.

—Andrew Moul
Director of Warehouse and Distribution Solutions
A. Duie Pyle


Ensure return shipments comply with all hazmat regulations. Simplify returns processes for customers, and ensure safe, compliant shipping, by giving them next-generation shipping boxes designed for shipping regulated materials (such as electronics containing lithium batteries) that arrive pre-assembled and pre-labeled with simple closure instructions.

—Brian Beetz
Director, Regulatory Affairs and Corporate Responsibility
Labelmaster


Find a workflow that encourages exchanges to keep the customer happy and also keeps their revenue in your business.

—Donny Salazar
Founder and CEO,
MasonHub


Seek solutions that automatically refresh inventory and financials to keep systems from accidentally selling inventory they don’t have in stock. Consumers today are buying products they can’t see or touch, so they order multiple versions of a product online and ultimately return all but one.

—Samuel Parker
Product Evangelist,
Cin7


View and optimize the entire reverse logistics process and not just single components. Allow technology to drive the optimal routing when the customer initiates a return.

—Steve Rop
Chief Operating Officer,
goTRG


Keep stock in good shape and get returned parts back into inventory. Sometimes returned parts may become a “hot” item and need to be picked again quickly. Getting them back into inventory as quickly as possible becomes key.

—Tony Oakes
Continuous Improvement Engineer
TA Services


Loop product data back to the original source. The way many companies currently manage their product data only allows for the one-directional flow of information from suppliers to buyers.

—Thomas Kasemir
Chief Product Officer,
Productsup


Avoid reverse logistics in the first place by having better upstream control. Ensure the right product and process quality control throughout the inbound flow, and you will take away key reasons for returning products.

—Elger Postma
Asia Commercial Head,
APL Logistics


Avoid it, at least where you can. Work to ensure that your customers are truly receiving what they want and that it will work for them. Whether it’s clothing that has a detailed size chart or technology that answers customers’ questions, make sure they are equipped with enough information so they’re certain they’re getting the right product.

—Nancy Korayim
Founder and CEO,
MetroSpeedy CX Strong Point


Don’t skimp on the customer experience for returns. It’s a unique opportunity to delight a customer under a non-ideal experience (no one likes returns), which generates super-fans for your brand.

—Chris Deck
CEO and Founder,
Deck Commerce


Make it easy for the customer. Provide simple access to labels and shipping, immediate credit for the returned product, and incentive to shop again. These simple steps build brand loyalty and positive customer sentiment, resulting in more purchases and product recommendations that offset any investment required to deliver this seamless experience.

—Laura Ritchey
COO,
Radial


Start with the goal of a great customer experience. A value-added returns process is aligned across all stages—beginning with clear instructions, expectations, and returns systemization for the customer; then creating seamless flow of product and information between returns fulfillment center, customer service, and outbound re-delivery functions, with meaningful visibility along the way.

—Brandon Feeler
Director of Client Solutions
Legacy Supply Chain


Have a great answer to a good question?

Be sure to participate next month. We want to know:

What’s the difference between traceability and transparency in the supply chain?

We’ll publish some answers. Tell us at editorial@inboundlogistics.com or tweet us @ILMagazine #ILgoodquestion.

 

The post What’s your best reverse logistics tip? appeared first on Inbound Logistics.

]]>
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Finding a Home for Holiday Returns https://www.inboundlogistics.com/articles/finding-a-home-for-holiday-returns/ https://www.inboundlogistics.com/articles/finding-a-home-for-holiday-returns/#respond Tue, 22 Mar 2022 09:00:00 +0000 https://inboundlogisti.wpengine.com/articles/finding-a-home-for-holiday-returns/ Record retail sales, including a growing share of online purchases (see chart), mean that more returns than ever are flooding warehouses. U.S. holiday retail sales were up 8.5% compared to 2020, says data from Mastercard, and 66% of consumers will likely return at least one gift. At 18%, the e-commerce return rate is almost twice as high as retail returns overall.


Worker shortages and low industrial vacancy only add to the difficulties with reverse logistics, which is both labor and space intensive. Most returns end up in warehouses, where they’re sorted manually. Here’s what to consider when shopping for a reverse logistics warehouse:

  • Sites in close proximity to consumer households and retail stores are preferable to keep transportation costs low for reverse logistics.
  • Proximity and easy access to infrastructure, such as recycling centers, is key.
  • Aim for larger, flexible footprints. Reverse logistics requires 20% more warehouse space than forward logistics.
  • A state-of-the-art distribution center is not typically needed for returns processing; a second-generation facility can adequately meet demand. The rent discount compared to new construction can be steep, offering significant value.
  • With more manual labor and less racking and automation required, lower clear heights and less efficient layouts are often adequate and can be leased at lower rents.
  • Demand is often seasonal, with retailers needing extra space only during peak periods. Manufacturing buildings as well as converted retail stores present flexible opportunities.

The post Finding a Home for Holiday Returns appeared first on Inbound Logistics.

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Record retail sales, including a growing share of online purchases (see chart), mean that more returns than ever are flooding warehouses. U.S. holiday retail sales were up 8.5% compared to 2020, says data from Mastercard, and 66% of consumers will likely return at least one gift. At 18%, the e-commerce return rate is almost twice as high as retail returns overall.


Worker shortages and low industrial vacancy only add to the difficulties with reverse logistics, which is both labor and space intensive. Most returns end up in warehouses, where they’re sorted manually. Here’s what to consider when shopping for a reverse logistics warehouse:

  • Sites in close proximity to consumer households and retail stores are preferable to keep transportation costs low for reverse logistics.
  • Proximity and easy access to infrastructure, such as recycling centers, is key.
  • Aim for larger, flexible footprints. Reverse logistics requires 20% more warehouse space than forward logistics.
  • A state-of-the-art distribution center is not typically needed for returns processing; a second-generation facility can adequately meet demand. The rent discount compared to new construction can be steep, offering significant value.
  • With more manual labor and less racking and automation required, lower clear heights and less efficient layouts are often adequate and can be leased at lower rents.
  • Demand is often seasonal, with retailers needing extra space only during peak periods. Manufacturing buildings as well as converted retail stores present flexible opportunities.

The post Finding a Home for Holiday Returns appeared first on Inbound Logistics.

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