1.
Welcome to ABOUT RETURNS ‘17

2.
THANK YOU
for being a
founding
attendee of
ABOUT
RETURNS
3PL
12%
Brand
12%
Consultant
18%
Education
2%
Finance
8%
Logistics
16%
Recovery
10%
Retailer
8%
Student
4%
Technology
8%

3.
WHY

4.
AGENDA:
1. An academic view on
Closed Loop Supply
Chain Management
2. Trends that drive the
importance of the
Reverse Supply Chain
3. Returns Management
Software presentation
4. About Returns panel
discussion
5. Networking drinks

5.
An academic view on Closed Loop Supply
Chain Management

6.
Closed loop supply chains:
the road to value Creation
Prof dr ir Harold Krikke

7.
Open Universiteit Nederland
• Southern Netherlands (Heerlen)
• Distance learning
• BsC, MsC and PhD program
• 15.000 students, wide variety in age but mostly 30-45 years
• Three faculties, amongst which Management Science and
Technology
• 50 external PhD, 20 internal PhD

8.
Closed-loop supply chain management is the design, control
and operation of a system to maximize value creation over
the entire life-cycle of a product with dynamic recovery of
value from different types and volumes of returns over time.
Guide and Van Wassenhove, 2006.
harvesting

9.
Positioning
economy business
Product Extended Producer
Responsibility
Cradle2Cradle
Process Circular economy Closed loop SC

10.
Closed loop and the life Cycle

11.
Value Creation pyramide
Customer Value
Sourcing Value
Environmental Value Social Value
Feedback or information value

12.
Onderwerp via >Beeld >Koptekst en
voettekst
Pagina 12
Waarde kan ook negatief zijn!

13.
Compliance

14.
CLSCs/RSCs
Coordinating
decisions
stakeholders
Customer Value
Sourcing Value
Environmental Value
Social Value
Collaboration

15.
Critical success factors in value
Creation in Closed loop
• Compliance
• Extended producer responsibility
• Quality and hygiene
• Complexity
• Product design and supply chain design
• Disassembly and recovery optimization (multi-loop)
• Control
• Gate keeping, product acquisition, use of IT
• Collaboration
• Stakeholders management/alignment
• Industrial ecology and energy storage in clusters
• Carbon footprint
• Context (type of business)
• Customer
• Value creation/PSS
• Modularity/reconfiguration
• Repurchase intention and returns behavior

16.
What is Customer service?• A product-service system (PSS), also known as a function-oriented business model, is
a business model, developed in academia, that is aimed at
providing sustainability of both consumption and production
M.B. Cooka, T.A. Bhamrab & M. Lemonc (2006). "The Transfer and Application of Product Service Systems: From
Academia to UK Manufacturing Firms". Journal of Cleaner Production. Elsevier Ltd. 14 (17): 1455–
1465.doi:10.1016/j.jclepro.2006.01.018.
• Product Oriented. Ownership with remains with customer but additional
services supplied.
• Example: extended warranty on car
• User Oriented. Ownership with provider but usage rights with customer
• Example: lease car
• Result oriented. Direct function delivered. Owner is provider or one
customer.
• Example: shared car

17.
Subtypes of PSS

18.
Benefits and barriers
• Less risk for customer
• Constant revenue stream
• More sustainable
• Byer supplier relations
• Installed base monitoring
• Stable demand and
return flow
• Capital investment (upfront)
• Uncertainty for customer (life time
guarantee)
• Customer freedom of choice reduced
• Technology dev/upgrades
• Economies of scale (lagging), first mile
• Benefits sustainability unclear

19.
Assignment I: how to inCorporate new
values in business model (duo)
• Which values to incorporate in customer proposition
• Value for whom? (pros and cons)
• **

20.
What is a business model?
• A business model concerns
• Customer value proposition
• Products/ offered to market segments and customer relations management
(‘Marketing’)
• Value creation and delivery.
• Management of resources, processes, partners/stakeholders and technology (‘SCM’)
• Value capture.
• Cost structure and revenue stream (‘verdienmodel’). This includes capital needed and
ROI.
Adapted from Bocken et al., 2014

21.
ReCent typology
(van Ostayen et al., 2013)
• Input based
• Availability based
• Usage based
• Performance based
• Solution focus
• Effect focus
• Demand focus
• HYBRIDS

22.
Assignment II
• Which subtype of PSS is most feasible?
• per type of industry and/or
• per phase in the life cycle?
• Are hybrids needed?

23.
ExerCise
harvesting reman refurbish reuse Re-fill recycle
PSS Automotive Industrial
equipment
Medical
equipment
E-commerce cartridges E-waste
product Related
service
Advice
consulting
Extended
warranty
use Lease
Rent
Share/pool
result Act mgt/
outsource
Pay per unit
Functional
result (SLA)

24.
Classic PSS typology falls short
Classic typology does not capture essence of value creation within closed loop:
a. It does not connect to the key elements of business model
b. More values than in the past play a role but how to integrate them in the business model?
c. Stakeholders interests, e.g. third parties may be involved due to capital requirements
d. Requirements may change over the life cycle
e. We have to understand dynamics between business models and other succesfactors as well as
values mutual.

25.
InteraCtions
Pagina 25

26.
System DynamiCs
Recovered
products and parts
Returned products
and parts
+Sales recovered
products and parts
+
Installed base
+
+
Product
design
Customer
services
Information
management
Business
model
Trade-In rate
+
+
Maren Schenkel, 2016

27.
Cannibalization

28.
Assignment III
• Start the virtuous circle by reversing the vicious circle.
• How to manage dynamics of transition?
• Role stakeholders and alignment?
• Where to start?
Onderwerp via >Beeld >Koptekst en
voettekst
Pagina 28

29.
Wrap up
• Multiple CsF in value Creation with mutual relations
• Multiple values (positive and negative)
• Manage dynamic to create virtuous circles
• PSS is not a full grown business model
• One size fits all does not work (ergo product Leasing)
• Research agenda
Keep the C alive

30.
Research agenda
• Topics and funding
• Value Creation in closed loop supply chains (Maren Schenkel)
• Value of information and organizational learning (Ilkka)
• Forecasting and intervention
• 3D and (CL) supply chain design (Victor Verboeket)
• Supply chain risk (Quan Zhu and Evangelos)
• Footprinting, economics & stakeholders
• CIRCULAR BUSINESS MODELS (> NWO call)
• Plastic soup
• Cold chain and returns
• Research questions
• How to develop PSS into full business model
• Interaction other CSFs (Business model and value of information)
• Role of the life cycle, hybrids
• Multiple values (are circular business models more sustainable?)
• Stakeholders (lock-ins, mutual dependency)
MANAGE DYNAMICS

31.
Trends that drive the importance of the
Reverse Supply Chain

32.
Why worry about returns?
1
Because there are so many damn
returns in e-commerce.
Because something fundamental is
going on.2

33.
Because something fundamental is going on.
1. Direct-to-Customer Commerce
2. Experience- & Share Economy
3. Circular Economy

34.
Direct-to-Customer Commerce
The customer is king.
1

35.
Direct-to-Customer Commerce 1

36.
Direct-to-Customer Commerce 1

37.
Direct-to-Customer Commerce 1
The customer is at the steering wheel of her
shopping experience (and supply chain).

38.
Direct-to-Customer Commerce 1
More Complete and On-Time Inbound &
Outbound Orders
Reduced Total Landed Cost per unit
Lower Average Stock-out Rates Reduced Transportation Cost per unit
Greater Finished Goods Inventory
Turns Per Year
Improved Out-of-Stock recovery
time
Source: Aberdeen Group

39.
1. Direct-to-Customer Commerce

40.
Experience & Share Economy 2
Customers don’t buy products.
They buy experiences.

41.
Experience & Share Economy 2

42.
Experience & Share Economy 2
Customer Journey
Purchase:
1. Right product
2. Right place
3. Right quantity
4. Right price
5. Right time
6. Right service
Product:
1. Useful
2. Available
3. Sustainable
4. Fun to use
5. Easy to dispose
BUY USE

43.
Experience & Share Economy 2
DeliveryPurchaseOrientation
Buy
conversion focused
End of UseAt UseStart of Use
Use
retention focused

44.
Experience & Share Economy 2
End of UseAt UseStart of Use
Use
retention focused

45.
1. Direct-to-Customer Commerce
2. Experience- & Share Economy

46.
Circular Economy 3
Product value should not get
lost.

47.
Circular Economy 3
The linear economic system needs to be stopped.

48.
Circular Economy 3
Products should circulate in the production system, like
leaves do in the natural system.

49.
1. Direct-to-Customer Commerce
2. Experience- & Share Economy
3. Circular Economy

50.
Change Customer CentricCircularFlexibleScalableSustainable
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.

51.
Change to a new Economy
An economy is the system of production, distribution and consumption of scarce
goods and services in a society.
Products
Supply Chain
Consumers

52.
A closed loop supply chain for a customer
centric and circular economy.
Change to a new Supply Chain

53.
Plan Source Make Deliver Return
Sales Journey
Conversion focused
Orientation Purchase Delivery
Service Journey
Retention focused
Start of Use At Use End of Use
Customer Service Operations
Returns & Exchanges
Warranty & Repair
Take-Back & Recycling
“I don’t like it”
“Help, it doesn’t
work”
“I don’t use it
anymore”
Refund & Exchange
Repair &
Replace
Reward &
Rebate
Forward Supply Chain Reverse Supply Chain

54.
DeliverMakeSourcePlan
Start of
Use
At Use
End of
Use
Return
Returns &
Exchanges
Refund /
Exchange
Warranty
& Repair
Repair /
Replace
Take-Back &
Recycling
Reward /
Rebate
Reuse, Resell
Repair, Refurbishment, Remanufacturing
(parts) Recovery, Recycling

55.
Supply Chain
Forward Reverse
Plan Source Make Deliver Return
Record-to-Report
Procure-to-Pay Order-to-Cash
Return-to-
Settlement
Business Processes
Change to a new Business Process

56.
“very interesting product and I think a really good handle on representing
the reverse supply chain as an extension of the existing forward supply
chain... great reference to the connectedness of customer service
operations and supply chain operations in what they called a returns-to-
settlement business process...”

57.
Solutions for the Reverse Supply Chain.
Driven by Technology.

58.
Execution
Process
Insights
Returns
Management
Solution Stack

59.
12RETURN RETURN JOURNEY

60.
Behind every product return is a customer
Unlock the opportunity to turn the returns process into customer service.

61.
OPERATE
COMMUNICATE
12RETURN RETURN JOURNEY
Returns
Authorisation
Returns
Settlement
Recover
Bring returned products into a
new supply chain to generate business
value.
Insights
Turn data from the returns process into
valuable insights to prevent future
unwanted return or stimulate future
wanted returns.
Reverse
Logistics
Returns
Processing

62.
RETURNS AUTHORISATION

63.
CUSTOMER CENTRIC

64.
REVERSE LOGISTICS

65.
FLEXIBILITY

66.
SCALABILITY

67.
Behind the returns process is a team
Give your teams and partners all tools to beat the returns challenge together.

68.
RETURNS PROCESSING

69.
SHARE INFORMATION

70.
RETURNS SETTLEMENT

71.
Insights
Flexible, scalable and independent.

72.
For Midsize and Enterprises
A flexible and scalable solution for the Reverse Supply Chain.

73.
Open API
standard for
external
integration
Returns
Authorization
Returns
Settlement
Reverse
Logistics
Returns
Processing
ERP / Shopping Cart System
Carrier Services WMS / RMS
Connectors
Alerters EndpointsStandard Integrations
Standard Integrations
Endpoints
Alerters

74.
Global
scalable
trusted
enterprise
cloud
1
Americas EMEA APAC (2018)
Amsterdam
2
Dallas
3
Hong Kong

75.
Audited,
certified and
secured for
enterprise

76.
Execution
Process
Insights
Recover
Prevention
Return-to-Vendor
Returns
Management
Solution Stack
Return Reducer
ReCommerce

77.
About Returns Panel Discussion

78.
ABOUT RETURNS
DISCUSSION:
1. The importance of
the Reverse Supply
Chain
2. Trends and future
developments
3. How is 12Return
helping?
4. What is expected
from 12Return?

79.
Networking Drinks

80.
Stay
Informed
ABOUT
RETURNS
aboutreturns.org
https://www.linkedin.com/groups/36132

81.
See You
Next
Year