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Retur n s i n the Om n i - Chan n el

Retur n s i n the Om n i - Chan n el. Dr. Dale S. Rog e rs Profess o r, Logistics & Supply C hain M anage m ent C o - D irector, C enter for Supply C hain M anage m ent Rutg ers Univer sity Leader in Sustainab i l i ty and Re v erse Logistics Practices ILOS - Instituto de Lo gístic a.

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Retur n s i n the Om n i - Chan n el

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  1. ReturnsintheOmni-Channel Dr.DaleS.RogersProfessor,Logistics&SupplyChainManagement Co-Director,CenterforSupplyChainManagement RutgersUniversity LeaderinSustainabilityandReverseLogisticsPractices ILOS- Institutode Logística

  2. Returns in the Omni-Channel Returns inthe Omni-Channel • Retailersandmanufacturersareincreasinglyfinding thattheirsales aredistributedacrossmanydifferentchannelsandsupplychains. Thiscreatesgreatercomplexityandbecomesa difficultproblemto solveefficiently.Additionally,issuessuchasassertrecoveryandthe secondarymarketfurthercomplicatethereturnsmission.End-of-life concernsandnewregulationimpactreverselogisticsprocesses. • Inthis sessionDr.DaleS.RogersofRutgersUniversitywilldescribe thenewrealitiessurroundingreturns.He will explainrelevant regulation,end-of-lifeissuesandchangesin thesecondarymarket. Integrativestrategiesformanagingreturnsacrossmultiple channels willbediscussed. UnitName

  3. Returns in the Omni-Channel Omni Channel Web Store Display Ads Mobile Call Center Email Direct Mail Physical Store Kiosk UnitName

  4. Returns in the Omni-Channel UnitNa me

  5. Returns in the Omni-Channel ReducingConsumer Risk UnitName

  6. Returns in the Omni-Channel OmniChannel? UnitName

  7. Returns in the Omni-Channel OmniChannel UnitName

  8. Returns in the Omni-Channel Victoria’sSecret UnitName

  9. Returns in the Omni-Channel UnitName

  10. Returns in the Omni-Channel System“Drains” UnitN ame

  11. Returns in the Omni-Channel UnitName

  12. Returns in the Omni-Channel SecondaryMarkets • Secondarymarketsareeffectivein divertinga largenumber of productsfromlandfills, creatingnumerousjobs, resultingin substantial economicvaluein theprocess. • Althoughnot reflectedin currentgovernmentmetrics,a • conservativeestimateis thatthesecondarymarketrepresents • 2.88percentofthe2012U.S. Gross • DomesticProduct. UnitName

  13. Returns in the Omni-Channel SecondaryMarket UnitName 13

  14. Returns in the Omni-Channel UnitName

  15. Returns in the Omni-Channel ProductResponsibilityCurve Product ResponsibilityCurve ProductLife Cycle Endof Responsibility End of Life Birth UnitName

  16. Returns in the Omni-Channel Reverseis Different Un 16

  17. Returns in the Omni-Channel Inventory DrivenCarryingCosts Product Salvaged 100% Bargain Basement Discounts Product Product 50% IntroductionObsolescence AndVolume Sales 0% Time UnitName 17

  18. Returns in the Omni-Channel UnitName

  19. ScopingTheIssues Returns in the Omni-Channel Sample LogisticsCostsMeantToBePurelyIllustrative Source:KevinWinneroski UnitName

  20. ScopingTheIssues Returns in the Omni-Channel Retailersincurabaselinecost/marginlossfrom end-to-end ReverseProductFlow; primarilyfromnet DWO/EOLliquidation. Non-PRCreverse flow(e.g., repairs,warranty, GeekSquad) OptimizeSKUcodesandsetup Redesign vendortermsand networkflows In-storereturn processing Transportation toDDC/PRC PRCphysical processing Vendor/outbound informationflows $inmillions 196 Nextsteps: +Identifywhatportionofthe$196MisaddressablebytheReverse Flowwork +Verifytheestimatedimpactofthein- flightwork(KimAnders,PaulMann, etc.) TBD Not-addressable(outofbaseline) TBD TBD TBD 3 5 17 34 5 0.4 4 $1.84perunit IllustrativeExample Source:KevinWinneroski UnitName

  21. Returns in the Omni-Channel Date Codes UnitName

  22. Returns in the Omni-Channel Central ReturnCenters UnitName

  23. R eturns in the Omni-Ch annel • End of Life • Innovateuseofend- • of-life • Recycle • Goodcorporate citizenship • “Cradle-to-Cradle” UnitName

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