Wednesday 29th November, 2017 · Tool Kit 1.0 - Key Areas •Reporting at senior level •Quality...
Transcript of Wednesday 29th November, 2017 · Tool Kit 1.0 - Key Areas •Reporting at senior level •Quality...
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Dr Jonathan Gorst, Sheffield Business School
Wednesday 29th November, 2017
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Agenda
• Retail Returns - the research background
• The Challenges
• The Returns Tool Kit
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Cross University Project
Jonathan Gorst - Sheffield Business School
Mike Bernon - Cranfield School of Management
John Cullen - University of Sheffield, Management School
Juliana Meira - University of Sheffield, Management School
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Good supply chain practice
Slick…
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Retail Returns in 2000’s
… not so slick
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• Value of returns £5.75bn
• Returns of above 30% were common in
certain areas
• Indication of poor returns management
processes
• Impact on sustainable distribution
Initial investigation into UK
Retail Returns(completed April 2004)
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Size of the issue
Estimates:
• UK - £5.75bn (Bernon and Cullen, 2004)
• US $260.5bn (National Retail Federation, 2015)
• Globally $642.6bn (MarketWatch, 2015)
US Economy 6.3 times bigger than UK
Using US figure as an estimate for UK. UK would be $41.3 equates to £33.5bn
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Core Themes
• Avoidance – Reduce the level of returns experienced
• Returns management– Identify effective product return processes and
networks to minimise logistics costs and maximise asset recovery
• Product dispositioning– Considers the options for product disposal that
maximise asset recovery while minimising the impact on the environment
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Challenges
• Provide good customer service while managing
costs
• Differentiate between customer needs and
customer wants
• Understand costs by delivery channel
• Should different distribution channels be
subsidising other channels?
• What is the competition doing?– Are we a leader or a follower?
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Tool Kit 1.0 - Key Areas
• Reporting at senior level
• Quality costing for initiativesCost and performance
measurement
• Manufacturer RMA – by phone in-store
• In-home information eg quick start guidesAvoidance or returns
• The role of the store – accessories!
• Speed – time value of productsProcess management
• In-house / outsource
• Separate networkPhysical network design
• Clock speed for short PLC products
• Asset management & dispositioning rulesInventory management
• Product handling
• Completeness & asset values Material handling
• Consumer return data fed back to product designInformation technology
• Transport emissions and natural resource managementSustainability
• Suppliers
• LegislationCompliance
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Toolkit OverviewSelf assessment
scoring
‘Help’
drop down boxes
Self assessment
statements
Hyperlink
appendices
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Current Research(work in progress)
Additional Sections:
• Omni Channel
• Value Proposition
• The Role of the Returns Manager
• Technology and Data
Retail Returns Tool Kit 2.0
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Omni Channel
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Value Proposition
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The Role of the Returns
Manager
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Technology and Data
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www.reboundreturns.com
www.thereturnsrevolution.com
Other Returns Research
4 studies in 2016 to get your teeth into
• Strong fashion focus.
• Benchmarks 200+ brands international return
policies
• Reveals there is more to a return policy than
meets the eye. A very thorough study based
on 7 key metrics. E.g. choice of return
method, cost of return, ease of navigation to
find the returns policy.
Checkout ‘The Great Returns Race’ benchmark produced by returns
specialists ReBOUND.
“REVOLUTIONISING RETURNS”
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Latest reports from 2017
RETAILERS IN THE AUDIENCE
Discover clear steps to improve your own
returns policies.
NON-RETAILERS
Gain insight into industry trends and which
retailers are exhibiting best-practice in
returns.
www.reboundreturns.com
www.thereturnsrevolution.com “REVOLUTIONISING RETURNS”
Download your copy of the Great
Returns Race here:
www.reboundreturns.com/returns-benchmark
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Questions