The Reverse Logistics Dilemma - The Transportation and ... · Reverse Logistics Dilemma . Solution....
Transcript of The Reverse Logistics Dilemma - The Transportation and ... · Reverse Logistics Dilemma . Solution....
Reverse Logistics Dilemma
The Reverse Logistics Dilemma Moderator Gailen Vick
Founder & Executive Director of RLA
Panelist Maria E Molina
Business Development Manager, PlanITROI &
John Sessions Director of Business Development, Encompass
Reverse Logistics Dilemma
• To support third party service providers (3PSPs) • To educate OEMs & Retailers on why they need
to outsource their RL • To enable Private Industry, Consultants,
Academics & Governments to connect and share new ideas and opportunities
Why Was The RLA Formed?
Reverse Logistics Dilemma
CORPORATE IDENTITY CHANGE
•Customer Service (helpdesk) •Depot Repair/ReMan •Service Logistics (Field Service)
–Transportation/Warehousing –Spare Parts Management –RMA Management –Replacement Management
•Refurbishment •Screening/Count Auditing •End-of-life Manufacturing •Remanufacturing •Fulfillment Services •IT Process Management •Recycling •Scrap/Waste Management •Gray/B Channel Management •Warranty Management •Asset Management •Sustainability •Environmental Resources
After Purchase Life Cycle INDUSTRY
Life Cycle Management
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Industry Definition
“Reverse Logistics is the process of managing assets (whether negative or positive) after a product or service is purchased or
consumed in all industries and across all disciplines”….
TERMINOLOGY
Automotive & HD Remanufacturing
Retail Grocery Unsaleables
Space & Aviation Obsolescence
Consumer Products After Market Supply Chain
Hospitality Reader Board Shopping
Apparel Merchandise Returns
White Goods Takeback’s
R E V E R S E
L O G I S T I C S
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Military Retrograde
Furniture Rebuilders/Refurb
Reverse Logistics Terminology by Industry
Reverse Logistics Dilemma
To educate industries about Reverse Logistics processes which are common to all. Along with Certification of RL Professionals.
To produce events around the world where OEMs, ODMs, Branded and Retail companies receive information on RL support services.
What Is The RLA’s Mission?
Reverse Logistics Dilemma
• Environmental Resources • Sustainability
Where Does Reverse Logistics Fit?
CORPORATE IDENTITY CHANGE
• PCB Assembly • Box Assembly • Volume Manufacturing • Integration • Configuration • Final Testing • Distribution to Customer • Customer Fulfillment • Transportation
• Vendor Relations • Planning • Procurement Inventory Planning • Component Fabrication
• Design Development • Technology Roadmaps • ASIC Development • Mechanical Design • PCB Layout • Prototyping • New Product Introduction
Aftermarket Customer Services
Manufacturing & Distribution
Material Management
New Product Development
REVERSE LOGISTICS E N D U S E R / C O N S U M E R
FORWARD LOGISTICS
Supply Chain - After Market Supply Chain PRODUCT LIFE CYCLE
•Customer Service (helpdesk) •Depot Repair/ReMan •Service Logistics (Field Service)
–Transportation/Warehousing –Spare Parts Management –RMA Management –Replacement Management
•Refurbishment •Screening/Count Auditing •End-of-life Manufacturing •Remanufacturing •Fulfillment Services •IT Process Management •Recycling •Scrap/Waste Management •Gray/B Channel Management •Warranty Management •Asset Management •Sustainability •Environmental Resources
Reverse Logistics Dilemma
Direction comes from two bodies, Advisory Board & Industry Committees
SENIOR MANAGER, REVERSE Logistics - Dave Moloney
Reverse Logistics Dilemma
www.RLmagazine.com
• 73 Editions • WW Circulation of 50,000+ • Published Monthly • e-reader formats
kindle
Reverse Logistics Dilemma
The Dilemma di·lem·ma:
a difficult or persistent problem
Source: Merriam-Webster dictionary
Reverse Logistics Dilemma
Reverse Logistics Dilemma Every Company Has An RL Dilemma
• Obvious- Consumer Electronics, Computers,
Automotive
• Not so obvious- Books, Apparel, Retail, Grocery, Software
• Practically invisible- Pharmaceuticals, Aerospace, Agriculture,
Medical, Energy
Reverse Logistics Dilemma
Companies Are Not Aware of the Dilemma!
Senior Management Frequently Unaware Of: - Size of RL operations - Cost of RL operations - Impact of RL operations on bottom line - Impact of RL operation on customer service - Impact of legislation on RL - Many line/staff managers don’t know RL Operations even exist
SEE THIS MISS THIS
Reverse Logistics Dilemma
How to Make a Difference
• Ownership within Enterprise Who Owns the RL Function?
• Distributed across functions • “Hidden” in operations or customer service
• Measurement Tools to measure the performance of RL?
• Few, specialized software tools • Financially absorbed in other departmental budgets
Reverse Logistics Dilemma
The RL Impact • Finance
What are the true costs / benefits to the organization? • I.E. Actual costs vs. retained asset value
• Operations How is RL affecting operational efficiency? • I.E. Quality improvements based on RL
• Sales & Marketing What is the effect of RL on sales? • I.E. Customer satisfaction, brand reputation,
remanufactured goods impacting prices
RL affects the bottom line
Reverse Logistics Dilemma
Source: RLA Amsterdam Conference 2010, Keynote Address Rehman Mohammed, Cisco
Reverse Logistics Dilemma
Sources: RLA Amsterdam Conference 2010, Keynote Address Rehman Mohammed, Cisco & Investor.cisco.com – FY 2009
(2.4% of FY’09 Net Income)
FY’09 Net Income – $ 6.1 Billion GAAP
Reverse Logistics Dilemma
What is the Impact to Mother Earth? • Environmental
• Are we a good corporate citizen? • Are we alienating clients?
• Governmental / Legislative • Are we meeting governmental requirements? • Are we open to legal action?
• E.g. RoHs, WEEE, SB 50 • Bottom Line Cost
• 3% to 15% in every company
It all affects the bottom line
Reverse Logistics Dilemma
$63.12 Trillion Global GDP
1-3% is RL Opportunity
Global RL Reverse Logistics - $3.15 Trillion
RL Trends
Reverse Logistics Dilemma
Solution
The Chief Reverse Logistics Officer (CRLO) would: • Have authority to make changes on RL globally, but day-to-day responsibility stays in the hands of
each Department
• Monitor the P & L to develop a Virtual profit center
• Acquire the necessary tools to support the finance department and report effectively to the Executive Staff
Resolve The Dilemma
Create A “C” Level Position For RL Management
Reverse Logistics Dilemma
Questions
Reverse Logistics Dilemma
Thank You!
Gailen Vick, Executive Director Reverse Logistics Association
801-331-8949 x11 [email protected]