You are viewing presentations from conferences that I have attended. Please enjoy & if we can help you with any logistics projects in the Americas please contact me at 678.364.3475 Bill was also on the Board of Directors for the St.Vincent DePaul Foodbank in Roseville California helping with the fund raising and meals to the poor program. While based in Northern California he was successful in fund raising programs for the Crusade of Mercy and helped Father Dan Madigan at the Sacramento Food Bank also. For 2008, Bill is a member of the Board for WORKTEC on also an Advisory Board Member for Boys and Girls Club for Metro Atlanta-Clayton County Chapter. See www.worktec.biz or www.bgcma.org . Bill is also on the Board of Directors for the Southeastern Warehouse Association & represents Georgia for 2010-2012. Regards, Bill Stankiewicz Vice President and General Manager Shippers Warehouse Email: williams@shipperswarehouse.com www.shipperswarehousega.com http://www.linkedin.com/in/billstankiewicz2006 http://twitter.com/BillStankiewicz http://www.topexecutivesnet.com/index.aspx

1. www.vil.be
Eye For Transport Amsterdam
September 27th, 2007
Workshop
Reverse
Logistics
Workshop Reverse Logistics
in the hi-tech & electronics
industry
www.vil.be
© Flanders Institute for Logistics
Jordaenskaai 25
B-2000 Antwerpen
Belgium
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VIL © 2007

2. www.vil.be
Flanders Institute for Logistics (VIL)
Reverse
Logistics
Workshop
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What is reverse logistics?
The reverse logistics process covers the return flow of materials
from end customer towards manufacturing site:
Reverse Physical flow
Logistics Admin flow
Workshop
Financial flow
Reverse flows are characterized by their extremely variable nature:
Volume
Quality
Quantity
Value
Throughput times
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RL trends in hi-tech/electronics
Time is money: very fast devaluation of products
Trend towards pan-European or global service networks
Huge potential for 3PL’s
Use of RMA (capture each return asap in the process)
Reverse
Logistics High importance of ICT for sorting /routing / SLA management
Workshop
/ customer contact
High percentage “no trouble found” (up to 40%)
Return policy is essential (gatekeeping/filter the influx)
Technical product knowledge needed from 3PL (e.g. I-Pod)
B2B: credit check is important part of the process
Reverse logistics and after sales are becoming profit centers
Etc…
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Is this your company?
Our customers are returning too many products!
Our “no fault found” rate is 40%!
Reverse
We have too many intercompany returns!
Logistics
Workshop
We neve see any credit from our OEM suppliers!
Our salesforce isn’t playing by the rules!
There is no transparency - We have no information or reports!
Our returns situation is an accounting nightmare!
Our returns process will always be out of
control – Let’s accept this as a fact of life…?
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Methodology: DMAIC (Six Sigma)
1) Define
Reverse
Logistics
2) Measure
Workshop
3) Analyse
4) Improve
5) Control
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Define: perception of unimportance
(no process owner)
Reverse
Logistics
Workshop
“The returned-goods dock of a warehouse is a window
VIL © 2007
to mistakes in engineering, sales, manufacturing and logistics.”
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Measure: returns from end customers
6.00%
9.0
8.0
5.00% 4.77% 4.77%
7.0
4.00% 6.0
CI
Reverse
% of tu rn over
5.0 GS
Logistics
3.00% HE
TOT
Workshop
2.42% 4.0
1.92%
2.00% 3.0
1.17% 2.0
1.00%
1.0
0.00% 0.0
BE60 NL60 LU60 BENELUX GB60 DK60 IT60 ES60 PT60 IBERIA NO60 SE60 FI60 NORDIC
CI GS IN HE NDT
BG
End customers are returning 3-6 % of total turnover and orderlines
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Measure: return reasons
60
50
Reverse
Logistics 40
Workshop
% of companies
30
20
10
0
Transport Not happy Delivery error Quality defect Cancellation No reason Late delivery Bad FC & Return after Commercial
damage with product of sale overstock use
Return reason
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Analyse: return value as % of turnover
Reverse
Logistics
Workshop
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Analyse: share of RL in total logistics workload
Reverse
Logistics
Workshop
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Analyse: detailed process map (IDEF0)
Reverse
Logistics
Workshop
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Analyse: returns pipeline (Pareto)
Pareto Analysis of Return Orders
100,00%
80% of return orders account
90,00% for 20% of total return value
Reverse 80,00%
Logistics Exactly 20% of return orders
account for 80% of total
Workshop 70,00%
return value
Cum. Return Value
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
Cum. % of Return Orders
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Analyse: time-stamp analysis
Reverse
Logistics
Workshop
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Analyse: root causes (Ishikawa)
Reverse
Logistics
Workshop
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Improve: take action
Combat “no fault found”
Separate RC from DC
Select and measure necessary KPI’s
Publish monthly return reports
Reverse
Logistics Educate salesforce and customers
Workshop
Gatekeeping / reduce the influx (return policy - RMA)
Document returns (photos)
Interface different ICT systems
Correct master + data (I/C pricing)
Automatic accounting procedures (write-off)
Organizational discipline: prevent problems at the source
It’s not rocket science! (e.g call center headsets)
Etc…
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Control: elements of a total RL make-over
systems/
cost model KPI
legislation/
rules
Reverse infrastructure
Logistics
Workshop
partners
company/
product
packaging
HR/skills
product
process/ transport
flows
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Checklist product
High value density
Serrato category
Volume & weight
Warehouse space needed (#pallet places)
Seasonality (Christmas) -> forecasting?
Reverse Statistics (MTBF)
Logistics
Workshop
LT service contracts: B2B slow movers/spare parts needed (often >10
years)
Top-5 return reasons (incl. no fault found!)
Technical porduct knowledge needed
High specialisation: “lock-in” of customer
Inventarize 2nd hand/grey channels
Play the recycling market (gold, silver)
Risk management:
Theft
Environment (e.g. batteries)
Fast product depreciation
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Checklist infrastructure (warehouse)
Keep “clean” and “dirty” flows separate: brownfield or greenfield ERC?
# inbound docks > # outbound docks
Automation potential is low
Low and wide racks (manual picking, lots of buffer inventory)
Use mezzanines (lots of slow movers/high value density/spare parts)
Reverse
Logistics Large reception area: FIFO per country/product
Workshop
Repackaging area
Scattered desks & PC-islands (inspection/testing)
Separate inventory areas for phase-outs & spare parts (slow movers), packaging,
refurbished items, swap stock
Separate guarded area for scrapping/shredding (containers)
Theft risk: fencing, badge access, CCTV, night guards, “Fort Knox” area for
refurbished items
ERC economies of scale/consolidation potential: high 19
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Checklist ICT/KPI’s/reporting
Identify KPI’s and collect historical data:
# returns/product
# returns/return reason
# returns/customer
Return rate/country
Reverse Credit note amount
Logistics
Workshop
Re-return rate
# returns processed/day
Cost/returned item
Document throughput times (time stamps/SLA’s)
Visibility of flows (web-enabled tracking & tracing)
Open systems: interface/integrate with customer ERP (B2B)
Call center: SLA contract management software needed
Develop in-house ICT competente <-> find an ICT partner
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Checklist HR/skills
Seasonality/peak loads: enable flex work
Product training & technical skills (e.g. I-Pod)
FTE admin/floor ratio: ca. 1/3
Reverse
Logistics Responsibility & accuracy (sorting/routing/scrap decisions)
Workshop
Knowledge of languages (RMA - English, French, German)
ICT skills (SAP, Excel, Outlook)
Procedural accuracy
Dexterity, concentration, sharp eyesight
Routine activities: socially beneficial employment (e.g.
scrapping of ink cartridges)
Job enrichment for outbound warehouse employees
“Is reverse logistics female ?”
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Checklist rules/legislation
WEEE
Recupel: volumes reporting
Vlarem II: limits the volume of “scrap inventory” allowed
Reverse
Logistics
Workshop
Shredding: OVAM + tax certification
Sarbanes-Oxley: valuation of refurbished inventory
ISO14001 (environmental compliance)
TL9000 (B2B telecom)
ISO 18000: health & safety (dangerous compounds)
Customs and export (crossing EU borders)
Pallet fumigation (USA/ASPAC)
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VIL maturity model for RL: where are you?
Reverse
Logistics
Workshop
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A complete VIL research report with
3PL roadmap for action
will be available in the fall of 2007.
Reverse
Logistics
Workshop
Questions?
sven.verstrepen@vil.be
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Reverse
www.vil.be
Logistics
Workshop © All Rights Reserved
Flanders Institute for Logistics (VIL)
Jordaenskaai 25
B-2000 Antwerpen (Belgium)
T: +32 (0) 3 229 05 00
F: +32 (0) 3 229 05 10
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VIL © 2007