Reverse Logistics Podcast

It is once again that time of year when reverse logistics executives need to start planning for Christmas returns.  For both retailers and manufacturers, the Christmas returns season is the by far the most important time of year. Your ability to process the tidal wave of returns during the first quarter of year will have big impact on your company’s bottom line.

In order to help you prepare for this, we have put together our own Christmas Checklist.  It’s like Santa’s list only it not about being naughty or nice, it is about maximizing the value of goods that will be coming your way after Christmas and minimizing the cost of processing those goods.

Use our 31 Point Christmas Returns Checklist tp ensure that all preparations have been made for processing all your Christmas returns. Just like those Christmas calendars, there is something for every day in December, but don’t wait until December to start planning.

The Christmas Returns Checklist

1. Update defective returns estimates based on sales since Thanksgiving
2. Update seasonal recall volumes by SKU and vendor / OEM / ODM
3. Review existing processed inventory waiting to ship – clear out as much as possible
4. Prioritize shipments by value and cube to reduce inventory and create space
5. Contact primary and secondary temp agencies and review requirements
6. Review management staffing and organization chart for the first quarter
7. Review volume estimates and plans for outbound shipping with carriers
8. Contact the provider of storage trailers and ensure adequate supply will be available
9. Inspect temporary space that will be used during peak season
10. Review plans for temporary space and storage trailers with Loss Prevention
11. Contact top 20 vendors / ODM’s to review plans and estimates
12. Review manpower plans for quality assurance and inventory control
13. Review plans with Systems to ensure NO major systems changes are planned during peak season or with any systems that directly interface with the RMS
14. Review plans for leasing temporary fork lifts and other power equipment
15. Review all parts supplies and ensure procurement plans and sourcing is ready
16. If additional shift are anticipated, procure addition lift batteries if needed
17. Review shipping plans and requirements with top salvage buyers
18. Review inbound sortation plans and shipping plans with internal Liquidation Department
19. Test all risers, security systems, and emergency procedures immediately
20. Schedule preventative maintenance ASAP for all equipment and conveyor systems prior to January
21. Review first quarter manpower plans by function, by shift
22. Review plans & volumes with recyclers and with waste management companies
23. Send any special instructions to all stores, branches, etc.
24. Notify all stores, branches, customers, and/or vendors contact information during peak
25. Review plans of all outsourced repair vendors,
26. Get reports of existing  backlogs for all repair vendors or outsourced support areas
27. Review weekly communications plans with key internal and external teams
28. Review aged files for any claims or disputes to clear up prior to year end
29. Meet with financial support systems management and review plans
30. Contact high volume vendors and ask if they have any plans to shut down during the first quarter for retooling
31. Have a merry Christmas! – Enjoy your family while you can!

With a good plan for peak returns season, and working through the 31 point Christmas Checklist, you can be assured the reverse logistics function is well prepared for this most critical time of the year.

In Reverse Logistics Podcast #13 – 4 Key Metrics in Reverse Logistics, Curtis Greve discusses the four critical metrics that a reverse logistics expert should monitor to ensure there return centers are operating efficiently and effectively.

There are two primary goals for every return center: 1. Maximize the net asset value of inventory flowing through the reverse logistics pipeline; 2. Process reverse logistics inventory at the lowest possible over all cost to the organization, while maximizing inventory recovery value.

Net asset value is the value of returned goods realized after being processed through a returns facility, less the cost of processing.  In order to maximize net asset value, the reverse logistics leadership team should monitor a number of metrics. There are many activities that should be measured and monitored to ensure you are running a best-in-class operation.  There are countless variations, the complexity of which is dependent upon the returns process, the inventory, and a number of critical business decisions such as brand protection, sustainability concerns, liquidation options and the like.  Among the variations there are four critical metrics that you must pay very close attention to and they are:

1. Thru Put
2. Cost per Unit
3. Yield Rate
4. Recovery Rate

Before you start writing emails pointing out the need for quality, it should be said that quality is a given for each area of your operation and should be a part of every operation.  In order to achieve your primary goals stated above and to achieve the desired results for each metric above, a high level of quality is required.

In this podcast, Curtis Greve will discuss each of these metrics and why they are important pulse points for every reverse logistics operation.

RL Podcast #13 – 4 Key Reverse Logistics Metrics

The Reverse Logistics Podcast

Your host is Curtis Greve.

The Reverse Logistics Podcast

Your host is Curtis Greve.

Reverse Logistics Podcast #11 – Future Trends in Reverse Logistics

This podcast is a recording of a presentation given by Curtis Greve to the DRS Customer Symposium on September 9, 2010.  The subject of Curtis’ presentation covered four external drivers that will impact every reclamation center and reverse logistics process in the world between now and 2015.

This presentation was directed toward CPG manufacturers but the drivers behind the future changes in the reverse logistics ecosystem will impact every retailer and wholesaler as well.

The DRS Customer Symposium was a great event with a lot of take home value for all attendees.  It was attended by over 40 manufacturers who are customers of DRS.  For more information on this symposium or about DRS services and solutions visit DRSReturns.com.

The Reverse Logistics Podcast

Your host is Curtis Greve.

This podcast is a recording of a presentation Curtis Greve made at the June 2010 GBQ Redbank Executive Breakfast Series in Columbus Ohio.  In this presentation Curtis discusses the threats and opportunities posed by three external drivers every company will face in the next five to ten years:

1. Dramatic increases in transportation costs and the resulting changes that will be required in supply chain networks
2. Reverse logistics networks and how companies can increase their bottom line profits by as much as 4%  or more
3. Continued demand for development of sustainable solutions and how sustainability can dramatically increase profits

Curtis points out that most companies will agree these three drivers are going to happen.  Business executive also realize that these elements will have a negative impact on their business if they don’t address the situation, yet few are doing anything about it.  How a company deals with these inevitable changes will determine if they will thrive or if they will find themselves at a significant disadvantage that could result in their ultimate demise.

The Reverse Logistics Podcast

Your host is Curtis Greve.

The most important question that an executive in charge of reverse logistics can ask about a new item is “What is the merchandise exit strategy?”  It is easy for a company to get excited about a seasonal item or the newest widget in their product line, but it is important for them to think about the exit strategy.  Just like an investor who is going to acquirer a company, manufacturers and retailers need to have a clear exit strategy for their goods.

In today’s podcast, Curtis Greve talks about how to develop an exit strategy for products and critical factors to consider when working within an organization to develop merchandise exit strategies.  Whether it is a seasonal item that is part of a guaranteed sales agreement, an item with a limited life span like a computer or fashion item, or if it is an item that is coming to the end of it’s life and is going to become obsolete, having a well thought out exit strategy could significantly improve that item’s contribution to the bottom line.

The Reverse Logistics Podcast

Your host is Curtis Greve.

In today’s podcast Curtis Greve explains the basics of the secondary market and liquidation.  According to Dr. Dale Rogers, the secondary market accounts for over 2.25% of GDP.  The secondary market is much bigger than most think and a great opportunity for many companies looking to develop additional sources of revenue and working to reduce their carbon footprint.

With imports growing, economic pressures increasing, and shareholder demands for more sustainable business practices continuing to build, developing liquidation capabilities is an effort that is well worth any executive’s time and attention.

The Reverse Logistics Podcast

Your host is Curtis Greve.

In today’s Podcast Curtis Greve shares three tips that can help improve returns processing; improve relationships with key vendors, suppliers, and liquidators; and increase the bottom line contribution of your reverse logistics program.

Do you know how to eat an elephant?  One spoonful at a time.  Curtis will share his experiences and time tested best practices that will help you improve, one step at a time.

Like Alan Weiss says “If you improve 1% everyday, in 70 days you will be twice as good.”  Here is three percent to help get you started.

The Reverse Logistics Podcast

Your host is Curtis Greve.

In today’s podcast, Curtis Greve discusses what consolidation fees and return authorizations are and how they are used to negotiate better return agreements between retailers and manufacturers.

Consolidation fees are the fees that retailers charge to manufacturers to cover the costs associated with processing returns through a centralized return process.  A return authorization, better known as RA or RMA, is the mechanism used by manufacturers to “give permission” for their customers to ship to them.  It is also the means used to track specific inbound shipments and reconcile the associated financial transactions.

Many retailers and manufacturers leverage consolidation fees and the type of RA used to negotiate better return privileges.  Listen to today’s podcast and learn how you can improve the financial performance of your reverse logistics process, one claim at a time.

The Reverse Logistics Podcast

Your host is Curtis Greve.

In today’s podcast Curtis Greve interviews Larry Maye, the COO of Precision Camera. Precision Camera is the world’s largest camera and video repair service provider, with facilities in the US and Mexico.

They provide a range of optical and imaging repair programs to manufacturers, retailers, liquidators and consumers. They are authorized by more OEM’s than any other optical and imaging repair service provider and have over 500 certified techs. For over 60 years Precision Camera has been the leader in camera and video repair.

The Reverse Logistics Podcast

Your host is Curtis Greve.