5. cewag supply chain week revlog mg (3)
DESCRIPTION
Consumer Electronics GS1 Supply Chain Week 2010 Reverse Logistics Work Group 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 goodsTRANSCRIPT
Consumer Electronics GS1 Supply Chain Week 2010
CEWAGReverse Logistics Work Group
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
large product range
Greater
environmental
legislature and
warranty recovery
World class
optimised process
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