Retailers worldwide lose a staggering $1.75tr annually due to the cost of overstocks, out-of-stocks and needless returns, according to research released from retail analyst firm IHL Group, commissioned by OrderDynamics, a Big Data prescriptive analytics software company.
Consumers often balk at the prospect of trading in old versions of equipment, while vendors do their best to encourage the move. Steve Brown, global product lifecycle manager with Hewlett-Packard Co., offers tips on how to manage trade-programs for old and out-of-warranty products.
Luxottica Group, a global luxury sunglass and eyeglass company, reports that it has improved quality, as well as the efficiency of its receiving, quality-inspection and subsequent re-stocking of returned products, by between 30 and 50 percent, by deploying a Near Field Communication RFID system. The solution employs an NFC dangle tag attached to each frame, and software that enables workers to view data about the item, and to update its status via NFC-enabled tablets.
A report from The Boston Consulting Group and the World Gold Council analyses the economic drivers of the global gold recycling market and highlights important future industry trends, including a shift in concentration of gold recycling from west to east, increased difficulty in obtaining gold from electronic products as less is used in modern devices, and potential consolidation within the recycling industry across the entire value chain.
Reverse logistics last year was punctuated by the record-breaking recall activity in the automotive industry, which created momentum that is now carrying into 2015. According to the Q4 Recall Index analysis from Stericycle, there was an unprecedented 74 million automotive units recalled throughout the year, an increase of 166 percent from 2013. Top affected products included air bags, which made up 34 percent of the total units recalled, and electrical systems, which impacted 31 percent of the units.
Enrique Castillo, president and chief operating officer of Fast Logistics Group, relates how the lead logistics provider adopted a sales and operations planning (S&OP) process to improve the reliability of delivery for major consumer-goods brands. A finalist in the SupplyChainBrain/CSCMP Supply Chain Innovation Award for 2014.
Analyst Insight: Online retailers must make the returns process convenient for their customers which, in turn, increases the amount of product returned. But every company must find a balance between cost and customer expectations. Should you encourage customers to return products to the store? To the DC? To a 3PL? The answer depends on your brand, culture, infrastructure and average unit price. – Bruce Baring and Jason Denmon, Apparel Industry Leaders, Fortna Inc.
Analyst Insight: Implementation time-lines for transportation management outsourcing continue to shrink thanks to cloud-based systems, process standardization, and features like automated carrier contract management. This is not the case for facility start-ups. With 10+ key milestones, hundreds of key tasks and sub-tasks, time-line slippage and cost overruns can quickly extend the time to value for both 3PLs and shippers. – Valerie Bonebrake, Senior Vice President, Tompkins International