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Reclamation Center “Future”. Gary Regina Supply Chain Manager. Charlie Makowski Director of Sales. Kurt Welz Retail Donation Manager. Reclamation Center “Future” . What is a Reclamation Center?
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Reclamation Center “Future” Gary Regina Supply Chain Manager Charlie Makowski Director of Sales Kurt Welz Retail Donation Manager
Reclamation Center “Future” • What is a Reclamation Center? • Central location for collection and processing of unsaleables product, Product Recalls or Items pulled from the primary distribution channel. • Can be owned by distributor or 3rd Party. • What is the purpose of a Reclamation Center? • A central collection point for returns established in the mid 1980’s to reduce labor costs • To control disposition of unsaleable product • To ensure proper issuance of billings and store credit • To provide a central location for product audits
Reclamation Center “Future” • With Today’s Technology, we will begin to see a much different picture. • More and More retailers are moving to a retail perpetual inventory and replenishment model that will demand real-time inventory adjustments and credits. • Causal Data is necessary to address the root cause of returns and the potential supply chain / merchandising improvements • Donations for perishable products are made at the retail stores to charitable organizations with proper controls… • What will the future look like for Reclamation Center? • A retail solution that will aid in the reclamation process • by reducing some of the centers sorts (Chutes) • by allowing retail stores to select and sort by return type or damage type. • allowing donations of perishables (Dairy and Frozen products) at store.
Reclamation Center “Future” • The Future is an In-Store Model • Features/Benefits • Store Personnel Scans Product on a Timely Basis • Real Time Inventory Update • Increases accuracy of Causal, i.e., Damage, Out of Date • Identifies Potential Hazardous Product • Increases accuracy of store disposition • Identifies Authorized & Un-Authorized • Reduces Shrink • Real Time Store Compliance • Recall • Reset • Box License Plates Provide • Box Manifests • Store Audits • Reduces Reclaim Center Scans by 50-60% • Deployable Anywhere • Warehouse • Retail Store
Reclamation Center “Future” • What are some Disadvantages and what can we do to mitigate those potential concerns? • Multiple Processors-Inconsistent Execution & Accuracy • Structured training and implementation process with on-going and continuous education programs. • Store Disposal Costs • No additional disposal costs as all dry goods designated to be destroyed will be returned to the reclamation centers as normal • All Dairy and Frozen Food items will be donated to “Feeding America” • Back Room Space • Retail stores already have a designated returns processing area so this will not use any more area then what they currently have and are using. • Possible Abuse • With the use of a data warehouse reporting tools, most companies can build a triggered report that could identify potential abuse and address the issue as it takes place.
Reclamation Center “Future” Questions? & Answers!