Consumer Electronics Supply Chain Week 2010
CEWAG Reverse Logistics Work Group Presented by Alexander Young Service and Logistics Manager Dick Smith
Reverse Logistics Returns average over 8% of total sales (Metreks inc 2010) 6% of all items sold are returned
(Returns Logistics 2009) 68% of items returned are assessed as “no fault found� (Accenture report 2007) Returns cost 4 times as much to process as outward goods
Objectives CEWAG OBJECTIVE: Review the requirements of various reverse logistic supply chain processes and formats within the Consumer Electronic Industry and identify opportunities where efficiencies can be gained through the adoption of GS1 Industry Standards and Messages. •
Reduce or eliminate deliveries that are rejected by the customer
•
Reduce or eliminate futile collection of goods
•
Increase data sharing and B2B messaging
Challenges Manufactures and Retailers have different Business Processes
Covers both rejections by the customer and faulty product
Data collection is sporadic
Loss of efficiency due to tracking individual units
Maturity of Reverse Logistics
No process Limited understanding
Poor process Growing understanding Awareness of environmental & warranty value
Solid process for repair and 3PL operation
Strong process for World class large product range optimised process
Greater environmental legislature and warranty recovery
Environmentally compliant Excellent warranty claim process Waste material as revenue stream
Work to Date Benchmarking returns process
Review of eMessaging standards
Contact with other industry bodies and government regarding eWaste