using tools & technologies to mature a returns management process

Spinnaker Proprietary & Confidential. 2014 All Rights Reserved

Using Tools & Technology to Mature a Returns Management Process

Maturity Curve Webinar

Part II: Tools & Technology

Spinnaker Proprietary & Confidential. 2014 All Rights Reserved 2

Delana Lensgraf• Research Content Specialist• Returns Management Community

Coordinator– LinkedIn Returns Management Leadership

Exchange– CrowdHall– Spinnakermgmt.com

Welcome

House KeepingFeel free to message me with any questions – we will address these during the Q&A session.Questions that can’t be addressed due to time constraints will be addressed in the Spinnaker Returns Management Leadership Exchange on LinkedIn.

Spinnaker Proprietary & Confidential. 2014 All Rights Reserved

• Founded in 2002 to help global clients transform their supply chains – forward & reverse

o Demonstrable Results o Long-term, Impactful Relationshipso 95% Repeat Clients

• Provide a unique combination of Supply Chain Consulting, Technology Enablement and Execution Services

• Experienced staff with relevant Supply Chain Management experience

Spinnaker approaches each engagement with Integrity and an unmatched focus on Client Success Inc. 500 List

“Fastest Growing US Private Companies”in 2008 and 2009 by Inc. Magazine

3

Spinnaker Overview

Supply Chain “Pros to Know”

by Supply & Demand Chain Executive

Magazine

Green Award by Supply & Demand

Chain Executive Magazine


• Introductions• Goals for the Session• Tools & Technology in the RM Maturity Curve • Enterprise Returns Management Tools• Stand Alone Returns Management Software• Key Takeaways• Q&A

Agenda


• Sharon has more than 20 years of executive and managerial leadership experience in Manufacturing, Distribution/Logistics, IT, and Service operations spanning large and small domestic and global organizations.

• As a former CIO, Sharon has a unique view of the importance of robust tools to support successful operations.

• Sharon leads Spinnaker’s Implementation and Change Management Services team.

• Paul has over 25 years of business experience, with 14 years of Reverse Logistics experience.

• Paul works with manufacturers, distributors, retailers and 3rd party service providers to solve product return challenges.

• Paul works with companies to architect and implement returns processes and systems utilizing the Andlor Reverse Logistics Management System, BacTracs.

Introductions

Paul Rupnow is a Partner with Andlor Logistics Systems.

Sharon Nelson is the VP of Spinnaker’s SAP Practice.


• Paul is a senior executive with over 20 years of leadership experience in Repair Operations, Reverse Supply Chain, Retail Returns Management, and Sustainability.

• Paul co-leads the Returns Management Consulting Practice for Spinnaker with a focus on End to End Returns Management Strategy, Reverse Supply Chain Design, and Corporate Social Responsibility.

Your Webinar Emcee (MC)

Paul Adamson is Director & Co-Lead of the Returns Management Practice


Why Are We Here?

Remember, it’s about recovery, not about cost.If somebody will process for 10₵ /unit less, but cannot properly execute an RTV for a $500.00 item, you didn’t save 10₵ , you lost $499.90!Rob Saper, OfficeMax, RLA Las Vegas 2013

The Impact of the Customer Returns Experience- 85% of customers WILL NOT shop with you again if the return process

is not convenient- 95% of customers WILL shop with you again if the return process is

convenientIndependent Study - Harris, RLA Las Vegas 2013

…at least a 40% processing saving by companies who had mapped their processes… also experienced a 20% higher recovery rate on returned products.Prof James Stock, University of South Florida


• To help webinar attendees understand the value of developing a technology roadmap specific to returns management

• To provide a non-partisan view of tools and technology utilized to manage mature returns processes

• To demonstrate real world applications of returns management solutions

• To create a platform that generates quality Q&A

Goals for the Session


Returns Management Maturity Curve


Typical Architecture of a Mature Returns Mgmt System

It All Starts with the Customer


Beginner’s Typical Architecture



System Impacts

Examples of business processes that often have unique system requirements for returns management.


• WHAT PART OF YOUR RETURNS MANAGEMENT PROCESS SUFFERS FROM THE GREATEST TECHNOLOGY CHALLENGE?

Planning

Receipts

Customer Crediting

WMS Interoperability

WIP/Inventory Management

Dispositioning

Flash Poll


Spinnaker SAP, Sharon Nelson


Enterprise Returns Management SAP Return for Credit

Call from Customer

Order Number Known

Configurable Material

???

Create Return Sales Order with reference to original sales order (RMA#=SO#) Material & Pricing Info copied

from ref. SO

Inbound Delivery Order (auto) created

Return Material Arrives – Create PRG against the inbound delivery

order

Create a Credit Memo against the Customer

record

Create Return Sales Order using a material

specific dummy material (RMA#=SO#)

Contact Sales Person to change the quantity on

the sales order

Sales Person inputs total amount against the dummy material

Customer Returnable Material Received

Receiving Staff receives component and

updates QTY received and sends it to Sales

for amount

Receiving Staff creates PGR – Dummy material

explodes into components

Returnable Material Comes In

Inbound Delivery Order (auto) created

Create a Credit Memo against the Customer

record

YY

Standard or Special Order Product

Return for Credit


Enterprise Returns Management SAP – Collect Costs for Rework & Return to Stock


Enterprise Returns Management SAP – Collect Costs for Rework & Return to Stock May be used to return units to stock, by customer specific storage location or general Sales orders used to re-sell refurbished goods. Cost collected on Work Order specific to unit


Enterprise Returns Management – SAP Product Re-Manufacturing


All processes shown use standard SAP functionality with custom order types: Order Taken Credit Processed Inventory Updated, FG or RM level Remanufactured/Refurbished Order Priced/Invoiced Items tracked to customer as specific to Sales Order/Work Order Option to store good by customer specific locations

Challenges include: Costing (if location of product manufacturing location is different than rework location) Planning Parts for Rework Processing Pricing rules for customer specific rework If other than cost plus Centralized storage of Warranty Terms if Rework Location is Centralized Enforcement/Management of Global Trade Compliance Requirements Sorting Process for Mixed Goods Receipt by Customer

Enterprise Returns Management – Challenges


Andlor, Paul Rupnow


BacTracs Reverse Logistics Management System (RLMS) Overview

Reverse Logistics Management System

Self ServeRMA Request

Status Lookup and Emails

Returns Data Integrator and Web Services

RMA / Returns

Triage/ Disposition

InventoryWIP and FG

Test/RepairRefurbish ShipmentsReceipts

Real Time Analysis Grids and BI

Alerts, Notifications

Processing Rules Engine


BacTracs RLMS Integration w/ERP & Partners



Cell Phone OEM: Reverse Logistics Data Control Tower for Customer Service, RMA & Repair Management

ERP

Returns Management System

Data Control Tower

Tracking/Status

Receipt Data

Repair Partner

Self ServeRMA Request

Call Center CSR RMA

Status Lookup and emails

Returns Data

Integrator and Web Services

Repair Data

Shipment Data

Real Time Analysis Grids

Alerts

Feature & Goals:1. Customer Satisfaction, Updates and Visibility2. Share, Manage, Control and Monitor RMA and Repair Data3. Flexible, Powerful Real Time Reporting Grids and Alerts

Unit Repair Data Record

Unit Repair Data Record

RMA (ASN)Web Service


3rd Party Returns Processor: High Volume, One Touch Receiving, Credit, Triage, Disposition

ERP

Returns Management SystemData Control Tower

Returns Data

Integrator and Web Services

1. Receive to RMA

2. Disposition Rules Engine

Returns WIP

Inventory

To Refurb

To Bulk Resale

To Scrap

Put Away to Directed

LocationDisposition Rules by Business Manager Can Include:• Item or family• Cost or Market Value• Inventory on hand• Vendor

Return To Vendor

Features & Goals1. Minimize Touches/ Max Speed2. Combine Processes3. Easy to Manage and Monitor Rules of Disposition

Scan UPC

RMA Receipt /Credit

Web Service


• Mature Returns Management Processes Rely on Technology and Tools

– Increase Velocity, Reduce Complexity, Reduce Human Error

Processing Costs Reduced 6-17% (on average)

Reduce Crediting Costs

Quicker Cash Conversion for Secondary Products

• Mature Returns Management Processes Develop Technology Roadmaps

– Assess Current State, Define Desired State, Identify Gaps

• Robust Stand-Alone and Enterprise Tools Exist to Mature the Operation

• Technology Must Be Supported at All Levels of the Organization

Key Takeaways


• Future Webinars on Returns Management Maturity Scheduled

– Next Up: Quality Management Systems in Returns Centers

• Learn More About the Returns Management Leadership Exchange on LinkedIn

• Today’s Information Will Be Available to Members of our Linkedin Group

• Request a Returns Management or Technology Assessment

Last Thoughts


Q&A


Thank You & Contact Information

Sharon Nelson• VP, SAP Practice• [email protected]

• 412-733-5062

Paul Rupnow• Director, Reverse Logistics• [email protected]

• 604-687-1130

Paul Adamson• Director, Consulting• [email protected]

• 512-731-5957

Today’s Presentation Will Be Available to Members of our LinkedIn Group (Returns Management Leadership Exchange)

mailto:[email protected]



using tools & technologies to mature a returns management process

Education

management tools

returns management practice

retail returns management

rights reserved paul

returns processes

rights reserved sharon

reverse supply chain

supply chains