Returns Management
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The document discusses creating a closed loop supply chain focused on a customer-centric and circular economy, emphasizing the significant impact of returns in e-commerce. It highlights the necessity for a shift from a linear to a circular economic model, which could yield substantial economic benefits, including decreased carbon emissions and increased disposable income for households. Additionally, it underscores the role of reverse supply chains in managing customer returns effectively to optimize resource utilization and enhance customer service.
Returns Management
- 1. Returns Management Building a Closed Loop Supply Chain for a Customer Centric and Circular Economy.
- 2. Why worry about returns? 1 Because there are so many damn returns in e-commerce. Because something fundamental is going on around us.2
- 3. Because something fundamental is going on around us 1. Direct-to-Customer Commerce 2. Experience- & Share Economy 3. Circular Economy 2
- 4. 1. Direct-to-Customer Commerce The customer is king.
- 7. 1. Direct-to-Customer Commerce The customer is at the steering wheel of her shopping experience (and supply chain).
- 9. 2. Experience & Share Economy Customers don’t buy products. They buy experiences.
- 10. 2. Experience & Share Economy
- 11. 2. Experience & Share Economy Purchase: 1. Right product 2. Right place 3. Right quantity 4. Right price Product: 1. Useful 2. Available 3. Sustainable 4. Fun to use 5. Easy to dispose Buy Use Customer Journey 1. Right time 2. Right service
- 12. 2. Experience & Share Economy DeliveryPurchaseOrientation Buy conversion focused End of UseAt UseStart of Use Use retention focused
- 13. 2. Experience & Share Economy End of UseAt UseStart of Use Use retention focused
- 14. 2. Experience & Share Economy
- 15. 3. Circular Economy Product value should not get lost.
- 16. 3. Circular Economy The linear economic system needs to be stopped.
- 17. 3. Circular Economy Products should circulate in the production system, like leaves do in the natural system.
- 18. • A circular economy could result in overall benefits of €1.8 trillion by 2030. • By adopting circular economy principles, Europe can take advantage of the technology revolution and increase average disposable income for EU households by €3,000, or 11% higher than the current development path. • This would further translate into an 11% GDP increase by 2030 versus today, compared with 4% in the current development path. • The circular model would also benefit households in other ways. For example, compared to the current development path, the cost of time lost to congestion would decrease by 16% by 2030, and close to 60% by 2050. • Carbon dioxide emissions would halve by 2030, relative to today’s levels (48% reduction of carbon dioxide emissions by 2030 across the three basic needs studied, or 83% by 2050). • Primary material consumption measured by car and construction materials, real estate land, synthetic fertiliser, pesticides, agricultural water use, fuels, and non-renewable electricity could drop 32% by 2030 and 53% by 2050, compared with today. • 65 reviewed academic papers indicate that “existing studies point to the positive employment effects occurring in the case that the circular economy is implemented” 3. Circular Economy
- 19. The Economic System needs to .....
- 20. The Economic System should be Circular The circular economy is an economic system that is designed to maximize reusability of products and raw materials and minimizing value destruction. Unlike the current linear system, in which raw materials are converted into products to be destroyed at the end of their life.
- 21. What is an Economic System? An economy is the system of production, distribution and consumption of scarce goods and services in a society.
- 22. The Actors in the Economic System? Production ConsumptionDistribution
- 23. Question Where should transition to the Circular Economy start?
- 24. Answer Production Consumption Distribution Start with Production (products) and Consumption (customers), supported by distribution (supply chain).
- 25. A great opportunity for Supply Chain professionals and students Develop a closed loop supply chain for a customer centric and circular economy. Supply Chain is the enabler of the Circular Economy.
- 26. Reverse ChainSupply Chain Create, Supply and Consume Return and Re- Utilize A great opportunity for Supply Chain professionals and students
- 27. The Reverse Supply Chain should have a dual focus Products Customers Returns Management
- 28. Customer Service Product Operations The Reverse Supply Chain should have a dual focus
- 29. A dual focus in different situations End of UseAt UseStart of Use retention focused Use “I don’t like it” Commercial Return Service Return Take-Back Return Product “Help, it doesn’t work” “I don’t use it anymore” Customer Refund / Exchange Repair / Replace Reward / Rebate Return-to-Settlement
- 30. The Reverse Supply Chain should support Return Cycles DeliverMakeSourcePlan Start of Use At Use End of Use Return Commercial Returns Refund / Exchange Service Returns Repair / Replace Take-Back Returns Reward / Rebate
- 31. The Reverse Supply Chain needs a business process Supply Chain Forward Reverse Plan Source Make Deliver Return Record-to-Report Procure-to-Pay Order-to-Cash Return-to- Settlement Business Processes
- 32. The building blocks of the Return-to-Settlement process Authorization Transportation Processing Settlement1 2 3 4
- 33. Variation requires trade-off’s and brings complexity B2C B2B POS Drop- off Pickup Fast Slow Central Local Repair Recycle Authorization1 Transportation2 Processing3 Settlement4 Refund Repaired product Reward Return-to-Settlement process
- 34. Complexity requires smart technology
- 35. A controlled returns process brings value opportunities Customer Value Sourcing Value Environmental Value Social Value Feedback or Information Value
- 36. Smart Technology
- 38. Stef de Bont Build the foundation of the Reverse Supply Chain.
- 39. Your Challenge Make Logistics step up from its poor reputation.
- 40. Thank you for your attention! https://12return.com https://academy.12return.com https://12return.com/support-program/book/ stef@12return.com | 06-28568600
Editor's Notes
- #41: In de diavoorstellingsmodus klikt u op de pijlen om de koppelingen te volgen.