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As companies gear up their M&A activity, the author examines how companies risk the success of the transaction by not focusing sufficiently on logistics management. PwC reports that only 30% of mergers and acquisitions add shareholder value. (2 pages)
Author: Ian Foley, Harrow Associates, Inc.
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This paper examines the impact of WEEE on Reverse Logistics and Closed Loop Supply Chains. (2 pages)
Author:
Donald F. Blumberg, President,
D.F. Blumberg Associates, Inc.
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This article in "Global CFO Agenda" highlights to CFO's the hidden cost of RL in a company's bottom line. Outsourcing RL to 3PSPs both minimizes inventory risks and helps to reduce cost as it is placed in the hands of those who know the task the best. (1 page)
Author: SalesLink Corporation
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This paper provides insight as to the value of Six Sigma to your organization. (1 page)
Author: Natalie Rhode, Johnson, Fain and Rhode, LLC
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Improving the Efficiency and Productivity of Service Parts Logistics. (6 pages)
Author: Michael Blumberg, Blumberg and Associates
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Companies are increasingly looking to their service businesses for greater profits, improved customer satisfaction, and competitive advantage -- and for good reason.
According to Aberdeen Group, aftermarket spare parts and services account for 8 percent of the annual gross domestic product in the United States, with U.S. consumers and businesses spending more than $700 billion annually on spare parts and services for previously purchased assets such as automobiles, aircraft, and industrial machinery. (3 pages)
Author: Dr. Morris Cohen, MCA Solutions
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Asset Disposition services comprise many types of product end-of-life services, including recycling, reuse, remanufacturing, salvage, destruction and material, sourcing. The aforementioned services have received a fair amount of attention in the past year as an outgrowth of the interest in reverse logistics as a key element in successful supply chain management. However, most of the attention paid to these services has been concerned with recycling of electronic waste from consumer disposal of items like personal computers, handheld devices (cell phones, PDAs, MP3 players), monitors and televisions due to the landfill costs borne by local and state governments in addition to the environmental hazards that affect the communities where the landfills are located. (3 pages)
Author: Michael Blumberg, Blumberg Associates, Inc.
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Many organizations still treat parts movement as a snapshot, static event. The reality is that managing service parts is a very dynamic, continually changing process. Many inventory control and even planning systems count parts only at static points in the cycles, and neglect that the key to managing service parts is the inventory in motion. (2 pages)
Author: Joe Patton, Patton Consulting, Inc.
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In today's marketplace, many retailers treat merchandise returns as individual, disjointed transactions. By waiting for merchandise to return to the warehouse before acknowledging a customer's return, these retailers create uncertainty on the part of the consumer and inefficient operations inside their warehouse. By not planning for returns-related issues at the order's inception, many retailers fail to control the entire return process. By following returns management best practices, retailers can achieve a returns process that addresses both the operational and customer retention issues associated with merchandise returns. (2 pages)
Author: Ray Greer, CEO, Newgistics
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Proven and effective processes for the return of defective and excess service parts from the field have been achieved on an average of four days at several high tech service companies. These processes have led these companies to avoid investing in additional and costly service parts inventory. (3 pages)
Author: Joe Patton, Patton Consultants, Inc.
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One of the best ways to improve your Reverse Logistics processing is through visibility. In this checklist, we will review some of the ways to meet the needs of your customers by providing them with visibility. In addition, by providing them with visibility, you will also benefit and improve your Reverse Logistics processing.
A wise Reverse Logistics professional once said, "We can maintain a high level of customer satisfaction, even when things go wrong, when we give our customers visibility to every step of our Reverse Logistics process with them." (2 pages)
Author: Paul Rupnow, ReverseLogisticsProfessional.com
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When a customer is on the phone with a warranty issue that requires a replacement product, they are looking to be satisfied immediately. Often however, this is a difficult challenge due to the high cost, limited resources and low inventory levels allocated to manage your replacements. (3 pages)
Author: Paul Rupnow, Director, Reverse Logistics Systems, Andlor Logistics Systems, Inc.
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If your business is repair how do you know if you are getting better? Are you efficient? Where is the opportunity? What is your repair time? (1 page)
Author: Roy Fain, Vice President, Johnson, Fain and Rhode LLC
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While the Reverse Logistics teams at most companies are resource strapped and operating on shoestring budgets, Nancy Maclean's team at Mattel gets all the resources she needs. Maclean and her team have developed a very effective program to monitor, manage and prevent Returned Goods. Their work has resulted in a reduction in Mattel's cost of defective returns by over 50% over the last 5 years. For a large company like Mattel, with brands like Barbie, American Girl, Hot Wheels and Fisher Price, any reduction in product return costs can add up to a significant impact in profitability. (3 pages)
Author: Paul Rupnow, Reverse Logistics Professional Report
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The following is an excerpt from "Benchmark Analysis & Evaluation of Repair Depot Operations," a research document by D. F. Blumberg Associates, Inc. This document contains benchmark information about Repair Depot operations and cost elements. (9 pages)
Author: Michael Blumberg, D. F. Blumberg Associates
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The laptops and Wi-Fi Hotspot Server (P2 desktop computer) that are being used at the RLTS conferences worldwide is a demonstration of sustainability through refurbishment.
Computer technology sustainability through reuse is one of the industry's major focuses. The refurbishment of computer hardware not only alleviates cost and risk in IT management, but it also positively impacts the environment while generating revenue. (1 page)
Author: Lennie Myers, Image Microsystems, Inc.
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Do you remember the last good customer service experience you had? Probably not. But most people can recall a bad one, and they won't just remember, they will tell others about it too. Research shows that after a good customer experience, most people will share their experience with 3-5 people. That's called good word of mouth. But after a bad experience, we tend to talk a whole lot more -- up to 20 people per bad experience. There's nothing worse than a customer who feels scorned.
How does this principle apply to reverse logistics -- or service logistics -- providers? It has been estimated that 12 times more transactions are involved in the reverse logistics than in the original product sale. The implication of this fact is that customer service levels need to be managed even more closely in the reverse logistics loop if high service levels in this critical segment of the product lifecycle are to be maintained. (1 page)
Author: John Small, Maxus Technology
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According to a new survey commissioned by eBay, nearly 60 percent of Americans receive unwanted gifts during the holidays. Last holiday season, an estimated $13.2 billion in holiday gifts were returned to retailers - more than a third of the $36 billion reverse logistics market in the U.S. (2 pages)
Author: Ryan Harrington, NYK Logistics
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Sydney, expecting a hassle in trying to return a gift given to her daughter, was not looking forward to making the trip to her local Target Store, where she believed the item was purchased. She finally made the trip with GameBoy and child in tow. As Sydney approached the Guest Services desk, her angst further increased by the intimidating posted sign: "A receipt dated within 90 days is required for all returns & exchanges." With no receipt, Sydney stepped up to the counter anyway and, before she could finish her dissertation on why she should be entitled to a refund or store credit, the Guest Services clerk interrupted her with "It's not a problem." Puzzled, Sydney watched the clerk scan the barcodes on the GameBoy packaging, and in an instant she was told when the GameBoy was purchased, that it was paid for by check, and the news she was hoping for, it was still within Target's posted returns period. (2 pages)
Author: Kris Holley, SiRAS.com
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Imagine a business that turns worthless products into gold. Twenty years ago, no one would have believed that there could be a business like this. Well, today this business does exist and it is called e-Waste/e-Recycling. It is the next big growth opportunity for global commerce in general and the Reverse Logistics industry specifically. (3 pages)
Author: Michael Blumberg, D. F. Blumberg Associates, Inc.
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How can we recover the highest value for our returned goods if we are trying to protect the environment as well? Will environmental initiatives result in significant additional costs and efforts for reverse logistics processing? One of the hottest topics for reverse logistics this year is the environment, as a result of the European environmental initiatives of WEEE (Waste Electrical & Electronic Equipment) and RoHS (Restriction of Hazardous Substances). Many other countries, states and regional governments are introducing similar legislation. (3 pages)
Author: Paul Rupnow, ReverseLogisticsProfessional.com
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Across the European Union there is a tide of change sweeping over the electronics industry. All 25 member states are enacting new legislation that is intended to reduce the environmental damage caused by our burgeoning consumption of gadgets and devices. At the centre of these new rules is the obligation on producers to fund the adequate collection, treatment and recycling of waste electrical and electronic equipment (WEEE). (3 pages)
Author: Adrian Dickinson, Project Director, WEEE and Reverse Logistics, Exel
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Sometimes, a company can have an obsolete finished product, while the parts inside still have value and current demand. This is where Parts Harvesting comes into play. (3 pages)
Author: Andrew French, ERT
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Are you treating your customers too well? Will you let them return anything just to ensure you maintain your happy customers? Will your Reverse Logistics group accept any returned goods without question? Do you think you are handing out credits far too often? A solid reverse logistics program starts at the beginning with good return authorization processes. Considerable savings are available through good policy and consistent, well defined procedures. These improved processes will also lead to higher levels of customer satisfaction. (2 pages)
Author: Paul Rupnow, ReverseLogisticsProfessional.com
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A common expression among Reverse Logistics (RL) professionals is that nothing happens until a product is returned. This is true in part, but experienced RL professionals also know that nothing gets done without a Return Material Authorization (RMA). Anyone who has experienced a situation where a product just shows up on the receiving dock without an RMA knows this. The RMA process is one of the most critical elements in the management of the Reverse Logistics (RL) Supply Chain. (3 pages)
Author: Michael Blumberg, D. F. Blumberg Associates, Inc.
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Article by Tom Stanton
First in a three-part series of articles on on international trade.
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Opportunity abounds for companies to differentiate via a solid reverse logistics program. When properly executed, it can become a vital part of your growth strategy, generate additional revenues, differentiate market position, support product demand, and retain customer loyalties. (11 pages)
Author: Rodney Moore, UPS Supply Chain Solutions
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To increase post-sales efficiencies, equipment manufacturers must ensure key business processes are in place. These include: infrastructure optimization, inventory control, lifecycle planning, and global information management. Essentially, these processes help to minimize investment in facilities, tighten inventory controls, predict service call needs, and provide visibility and management of vital information. (12 pages)
Author: UPS Supply Chain Solutions
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For companies involved in the high-tech market, their field service, returns management, and reverse logistics programs should be continually evaluated with evolving performance metrics. Leadership within these areas can be the basis for a solid customer annuity program to help distinguish a company from its competitors and create a distinct competitive advantage. (9 pages)
Authors: Todd Snyder, Terry Jones, Rodney Moore, and Linda Meloro, UPS Supply Chain Solutions
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The promise of RFID technology is real and can provide increased asset visibility, enhanced information content and velocity. Equally as real are the pitfalls. Learn the basics of RFID as well as the keys to strategic perspectives. (11 pages)
Authors: Michael Sullivan and Susan Happek, UPS Supply Chain Solutions
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Reverse Logistics - the science of taking something back into "forward-available" inventory in a documented, orderly fashion - can be broken down into general categories, one that companies are generally prepared for and one that they are not. The first category is warranty returns. Companies with warranty programs are set up for returns, because they learned early on to think in reverse. Though quantities vary, they are fairly predictable, because they're based on products' historical service lives. As items are repaired, they are repurposed in forward logistics mode, because for warranty items there is a natural drive to be "forward-focused." That's what logistics officers do: Move goods out of the warehouse and into the demand chain, as companies historically make money selling things, not taking them back into warehouses. (3 pages)
Author: John Reece, ClearOrbit
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An overview of reverse logistics as well as the importance of reverse logistics and a comparison of technology. (6 pages)
Author: Karen Hawks, Navesink Logistics, Inc.
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Normally, the largest investment - and the second-largest operating cost (after establishing the service workforce) associated with Aftermarket Service - involves the purchase and acquisition of parts and subunits and the labor costs associated with the management of the inventory, logistics pipeline, and depot repair operations, to ensure availability of parts when and where required. (6 pages)
Author: Michael R. Blumberg, D. F. Blumberg Associates, Inc.
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In years past, as reverse logistics was relegated to the shadows of "more important" corporate processes, asset recovery was paid little attention. Returns were treated as a necessary evil, and "out of sight - out of mind" was the mantra. Liquidation for convenience was the order of the day, and clearing warehouses and getting returns off the books was considered more important than maximizing recovery. One or two phone calls to the same old jobbers took care of the problem - to a degree. Thankfully, the rise of the Internet and the advent of online marketplaces has presented a unique opportunity to not only liquidate quickly but also to maximize the value of returns. As a result, asset recovery has become the easiest phase of the reverse logistics process to leverage, and can easily become the most rewarding. (5 pages)
Author: Jim Magnanini, ChannelAdvisors
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Despite the fact that the UK Government has postponed its long-awaited introduction of the WEEE Directive, there are still plenty of issues for exporters in the US electronics industry to address. (5 pages)
Author: Paul James, General Manager, Environmantal Compliance Solutions, Exel
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How do you monitor the pulse of your Reverse Logistics operations? How do you monitor your Returns processing activity? What measurements do you use to benchmark and improve your performance?
Successful Reverse Logistics performance requires more than a few month end reports. In this article we look at ways to maximize your Reverse Logistics performance. (3 pages)
Author: Paul Rupnow, ReverseLogisticsProfessional.com
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In our industry, speed, accuracy and profitability take center stage. As companies focus on the next quarter, the all-mighty dollar rules all. With the requirements for lower cost, faster turns and better service, companies are moving offshore. What if you could find a company that can deliver your required services that competes with offshore providers? Yes, competes with offshore providers dollar for dollar, all while helping your corporation take advantage of Corporate Social Responsibility (CSR). These companies are out there. (3 pages)
Author: Jeremy Vick, Reverse Logistics Association
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There are some unmistakable truths about top corporate execs. CEOs and EVPs love to walk the aisles of their stores, which are shiny and freshly waxed in anticipation of their "surprise" visit. Yet, on such field trips, they rarely see the stock rooms, and they are often hustled past the return counter. Likewise, they ride around the distribution center, seeing "neatness" on parade - rack after rack of new merchandise. But they are not afforded the same "royal treatment" when they tour their firm's return processing area. (3 pages)
Author: David C. Wyld, Southeastern Louisiana University
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Implementing an efficient reverse logistics strategy can be a winning approach for retailers as they look for ways to improve the shopping experience and boost customer loyalty. According to a December 2005 survey conducted by Harris Interactive, 92% of consumers said that they are likely to shop with a retailer
again if the returns process is convenient. Conversely, the same poll found that 82% of consumers would not shop again with a retailer that has an inconvenient return process. (2 pages)
Author: Jonathan Dampier, Newgistics, Inc.
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Learn about the three primary key value drivers in managing your returns population. Additionally, this white paper covers specific ways to design and implement several mechanisms that access this value potential. (10 pages)
Author: Lee Norman, ClearOrbit
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With security software spending estimated at $50 billion globally in 2005, many organizations are clearly taking the problems of data privacy and identify theft seriously. However, while most companies have focused on preventing perpetrators from breaking into their organizations, there has been comparatively little attention on protecting information that leaves the company on retired information technology assets. (2 pages)
Author: Brooks Hoffman, LifeSpan Technology Recycling
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The challenge of every Reverse Logistics Professional is to increase your corporate profits by improving the handling of your returns. Returns processing is made up of many people, processes and costs, so it can be a considerable challenge to assess where to focus your energies to ensure you can achieve the biggest return for time or money invested. (3 pages)
Author: Paul Rupnow, Andlor Logistics Systems
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ISO 9001 is the most important quality management system in use today. A company that holds ISO 9001 is telling its customers and the world that it has a top quality management system and is totally committed to quality products and services. Companies that go through the process find that profits increase thanks to opening up market opportunities. Also, costs go down due to improving efficiency. (3 pages)
Author: James Goldstein, PhD, Business Manager, IMSM
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Supply chain executives know the importance of a streamlined and efficient forward supply chain. Organizations of all types and sizes have heavily invested in technology and have developed enhanced operational processes that quickly, efficiently and cost-effectively bring finished goods to the end-user. However, the most accurate planning and inventory management cannot overcome the inevitable flow of goods that are returned through the reverse supply chain. The introduction of new products, liberal return policies, supply chain inefficiencies, and even regulatory policies are contributing to the growth of the Reverse Logistics, which is predicted to reach $63.1 billion by 2008. (3 pages)
Author: Ram Aikat, Liquidity Services, Inc.
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The consumer electronics industry is a shining star in the US economy with robust growth and record-breaking productivity, according to the March 2006 report of the Consumer Electronics Association (CEA). The consumer electronics industry employs almost two million US workers across both retail and manufacturing sectors. Over the ten-year period from 1994 to 2004, CE-related retail productivity increased 309 percent, versus 52 percent in general retail. Unfortunately, that shining star has a dark side: a returns rate in consumer electronics hovering at an astonishing twenty percent. Improving the inventory asset management of the volume of inventory in the reverse supply chain is the next major area of productivity improvement. (3 pages)
Author: Anne Patterson, Freeflow.com
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Managing returns is big business. However, for most companies, managing returns is just a big headache that most executives hope would just disappear. Unfortunately for logistics professionals, the returns headache is migraine size. According to the chairman of the Reverse Logistics Executive Council (RLEC), the top 30 non-grocery retailers in the United States handle around $53 billion in returns per year. Other recent estimates range as high as $100 billion, which is more than the GDP of two-thirds of the world's countries. (7 pages)
Authors: Kate Vitasek, Supply Chain Visions; Dr. Karl Manrodt, Georgia Southern University; and Peter Murphy, Arvato Services, Inc.
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What is old is new again. A quick search on Amazon.com pulls up over one thousand business books with the term "integrated" in the title. This word, which is defined as "to make a whole by bringing all parts together" has been applied to logistics and supply chain concepts for decades.
The intent of this article is not to stake claim that integration is critical to reverse logistics success - this is a given. Integration in the context of reverse logistics, or any business area, is a means to an end, not the end itself. As technology, business practices and globalization continue to evolve; enterprises will continue to expand the boundaries integration to drive business value. (5 pages)
Author: Ray Martin, Strategic Consultant, Click Commerce
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Article by David C. Wyld, Southeastern Louisiana University
To better understand the power of RFID (radio frequency identification), it is first useful to compare and contrast RFID with bar code technology. The bar code has become a part of every product we buy, having become the ubiquitous standard for identifying and tracking products. While the bar code was intended to improve efficiencies in the grocery industry, it has become ubiquitous in the identification of everything, having been institutionalized across most industries and around the globe.
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Article by William K. Pollock
When asked "Who was the greatest American male dancer of all time?" most people would respond "Fred Astaire" without hesitation. However, the response to "Who was the greatest American female dancer of all time?" is typically much more wide open.
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Article by Paul Rupnow
If you run an e-commerce retail store, product returns are unavoidable. Reverse logistics in an e-tail environment is a challenging part of your business. Customer service is essential to getting and keeping your on-line customers. The handling of your returns is an essential component of your customer service program.
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Article by Arvato Services Inc.
A young executive gazes absentmindedly out his airplane window as his fingers drum on the top of his closed laptop. He looks at his watch and thinks of his wife and kids just getting home from a soccer game. This is the third trip this month he's made to his company's off-shore call center. He knows his company is saving money by locating its call center there, but he wonders if it's really worth it; the travel, the phone calls in the wee hours of the morning and the comments from customers who have become frustrated by multiple calls to get what they need. He wonders if there isn't a better way.
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Article by Rodney Moore, UPS Supply Chain Solutions
An opportunity to generate additional revenue, differentiate market position and support product demand is available to companies in the form of reverse logistics. It is estimated that reverse logistics costs account for almost one percent of the total United States gross domestic product and is rapidly becoming an integral component of retailers' and manufacturers' profitability and competitive position. Product returns are the most common aspect of reverse logistics; yet, most companies do not handle returns well because it is not a part of their core competency.
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Article by Joe Costa, Depot America
You can't move forward on a journey unless you map the course. These days you'd be hard-pressed to find a road that hasn't already been paved. However, when moving through new ground, utilizing a few necessary tools, thorough research and the drive for success you just might be able to make that trip faster and more efficiently while making some unexpected discoveries along the way.
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Article by Paul Rupnow, Andlor Logistics
Demands these days on a CFO are tremendous; however there are few CFOs who will turn down the opportunity to increase their corporate profits. Reverse Logistics management is an emerging area that deserves some CFO attention because there are a number of significant opportunities to increase profits.
This article outlines, in executive summary format, why returns deserve CFO attention, where the profit opportunities can be found and other emerging issues product returns and reverse logistics that may require related CFO attention.
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Companies make money selling things, not taking them back. But companies automating the reverse logistics process have discovered a nontraditional but relatively easy way to move dollars to the bottom line. (4 pages)
Authors: Lee Norman and Warren Sumner, ClearOrbit
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Today's macroeconomic environment of globalization, outsourcing and consumer market visibility has resulted in the commoditization of products and erosion of margins. This has put pressure on manufacturers to not only drive efficiencies from their supply chain through outsourcing of non-core competencies, but to distinguish their products through superior levels of customer service. After-market service has not only proven to be a critical component of customer satisfaction but is a key component of top line revenue and profit.
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The Reverse Logistics Industry has experienced an increased level of competition in recent years as the result of the emergence of independent repair vendor (IRV) providers. One of the most often cited benefits by IRVs for using their services is the potential cost savings to the customer, in the form of lower prices, which maybe as much as 10% to 30% lower than the OEM.
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Logistics costs in the supply chain have inescapable implications for the recycling of end-of-life technology assets. Organizations either pay directly for pick-up and delivery to recycling plants, or incur hidden, internal costs of moving materials in the form of higher recycling charges. Depending upon the location and types of equipment involved, logistics can represent upwards of 75% of the total cost of electronics recycling.
Author: Brooks Hoffman, Lifespan Technology Recycling
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Successful Reverse Logistics depends on many partners performing functions such as transportation, processing, and fulfillment. The Reverse Logistics challenge is to quickly, efficiently and effectively process each returned unit, while minimizing costs and inventory. This challenge can be extremely difficult when you need to rely on multiple partners around the globe to help you get each return processed.
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The definition of "intellectual property" may vary by firm but most business professionals would agree that items such as trade secrets, design plans, formulas, manufacturing processes, and business strategic plans are extremely important assets and therefore must be protected. In some cases, a company's ability to safeguard their IP assets could mean the difference between business success and failure. This is especially true for many of in the high tech industry.
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Four years ago, when the first Reverse Logistics conference was hosted in Las Vegas by the Reverse Logistics Association, few people had heard of the term Reverse Logistics and even fewer understood what it was. Since then, the term and the industry have exploded and a significant evolution is taking place in the management of product returns. Despite the rapid industry growth, there are not a lot of standards available for Reverse Logistics at this time. Safety standards keep our work environment safe, wireless standards keep all of our wireless devices communicating with each other, but what about Reverse Logistics? Do we need standards? Some standards are extremely helpful to an industry, some standards are created to regulate. Are there any standards needed to assist or regulate the Reverse Logistics industry? The answer is yes.
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Customer Service excellence is an important part of corporate strategy for competitive advantage, yet manufacturers are often so highly focused on developing and delivering new products, that they do not devote enough time, energy or resources to looking after their customers when a return is requested.
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When people think of reverse logistics, they often think retail and retail-specific things like original sales orders, UPC bar coding and warehouse management systems. Reverse logistics, however, isn't just a function of retail-service environments, such as repair centers and service parts management environments use reverse logistics as well. However, the way retail uses reverse logistics can be substantially different than how it's used in the service environment. Knowing these differences can be important when creating strategies, working with partners or deploying technology solutions.
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The Reverse Logistics policies and practices that support the services organizations of today are not the same ones that supported their predecessors as recently as 10 years ago. Much has changed, as new technology and communications tools make it easier to conduct business, all while customers have become much more knowledgeable about the numerous after-sales service and support options available to them. As a result, Reverse Logistics now has a far more important impact on such key business areas as profitability, growth and customer satisfaction.
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Chicago's Public School CTO Robert Runcie is responsible for managing computer hardware in more than 600 public schools. Unfortunately, Chicago's fiscal challenges have handcuffed Runcie making his job very difficult. According to an article that appeared in the Chicago Tribune, "Each Chicago area school gets its own budget for purchasing and supporting its own computers. This has led to some massive problems, as schools struggle to find their way in unfamiliar territory." The article talks about how schools struggle with problems relating to the acquisition, maintenance and recently the disposal of old computers. Typically, the funding that is provided to schools is usually targeted for the acquisition and maintenance of computers. There usually is no consideration given to the disposal of the old computers. The challenges Mr. Runcie faces are not unique to the Chicago Public School System. School systems across the country face a similar dilemma in what to do with old, outdated computer hardware.
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Exchanging data with your Reverse Logistics partners is no longer a good idea, but a necessity to measure performance and drive profits from Reverse Logistics operations. In his keynote presentation to over one thousand attendees of the Reverse Logistics Association Trade Show 2007 in Las Vegas, Thomas Maher from Dell, Inc. stressed repeatedly that “data” was critical to improving Reverse Logistics. Improving data exchange with customers and partners is getting easier every day, but still can be a challenging project.
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The best place to learn best practices is from other Reverse Logistics Professionals. The Reverse Logistics Association Amsterdam 2007 Conference had a full agenda of top notch professionals who shared their challenges, successes, experience and wisdom. This article provides a summary of some of the tips they provided to assist you to improve your Reverse Logistics operations.
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Article by Paul Rupnow. As you work on improving your Reverse Logistics, one of the challenges is to measure your progress. A helpful method is to use a progression model. A Reverse Logistics Progression Model is a strategic framework for the design and improvement of your Reverse Logistics processes, Reverse Supply Chain and your Reverse Logistics relationships, based on the experiences, best practices and knowledge of the industry and the community. You can use this model to help assess your Reverse Logistics progress.
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Article by Paul Rupnow
If your CEO asks you how your Reverse Logistics team is performing with the disposition of your returned goods, what do you say? The answer is not always so easy, but ideally you should say:
"We recover the highest profit possible on each item returned by:
1. processing each returned item as quickly as possible
2. for the least cost possible, and
3. selling each item for the highest price possible."
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Article by Paul Rupnow
If your CEO asks you how your Reverse Logistics team is performing with the disposition of your returned goods, what do you say? The answer is not always so easy, but ideally you should say:
"We recover the highest profit possible on each item returned by:
1. processing each returned item as quickly as possible
2. for the least cost possible, and
3. selling each item for the highest price possible."
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Article by Jeff Zeigler of TechTurn
Many companies have a desire to donate old computers to schools or charities in an effort to help close the "digital divide" while freeing up valuable storage space, keeping e-waste out of landfills, and earning a tax deduction. Unfortunately, serious risks and pitfalls are associated with donating used computer systems directly to charities or nonprofits.
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Article by Paul Rupnow
In the spirit of the holiday season, Reverse Logistics teams may be pleasantly surprised to find that giving may also result in receiving.
Did you know you could save a great deal of your Reverse Logistics costs by donating your inventory? Did you know you might also get a tax deduction of double the value of your inventory? Did you know that many companies now prefer to donate products rather than cash? Did you know your company likely has valuable assets that are not in use that can easily be collected and donated?
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White Paper by Michael Shelor of Shelor Consulting Inc.
Overview of Service Parts Obsolescence: Developing processes that are focused on minimizing the obsolescence risk in service parts as the product progresses through its life cycles, ensures the lowest cost of support. Effectively managing the obsolescence in service parts while maintaining a reasonable economic value and availability to customers for service parts is the primary goal.
The end user customer must combat obsolescence on two fronts, service parts and the product. Product obsolescence can occur prematurely if the service parts are either not available to repair the products or become uneconomical to procure.
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Article by Michael Blumberg
As Aftermarket Services business practices in support of electronic equipment (i.e., Telecom, IT, Medical Electronics, etc.) have changed over the last few years to support more complex service activities, so to must the benchmarks and metrics used to evaluate the performance of these activities.
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This research paper reports on a reverse logistics survey of shippers and logistics service providers in Flanders, Belgium, one of the leading logistics regions in Europe.
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Article by dr ir H.R. Krikke, CentER Applied Research of Tilburg
University.
The environment is keeping us busy. Since Al Gore's "Inconvenient Truth" it is impossible not to know about the greenhouse effect and its main cause: carbon dioxide. Although sustainability involves many more aspects (such as hazardous materials, resource depletion, etc.), it certainly has made a tremendous impact.
Most companies however, are still concerned with their bottom line. Businesses are expanding into international markets, requiring the ability to manage manufacturing and distribution on a global basis. (Out-) sourcing strategies have led to complex supply chain networks, with different locations for different activities.
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Article by Paul Rupnow
Reverse Logistics outsource partners are developing skills and services at a rapid pace. There is a broad selection of excellent Reverse Logistics services now available to assist OEMs. As a result, many OEMs are now seeking best practices and better ways to work with Reverse Logistics outsource partners.
This article is a collection of tips assembled from conversations with OEMs on the outsourcing decision, working with outsourced partners and on managing, monitoring the outsourced partners to improve Reverse Logistics.
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Questions abound about Reverse Logistics software, what is available and how can it help Reverse Logistics processing. This article outlines a possible Reverse Logistics Software System framework that can be used to help understand and assess existing systems and to develop plans for future systems.
Author: Paul Rupnow, ReverseLogisticsProfessional.com
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Unlike any other consumer product introduced in the last ten years, the Apple iPod has taken America by storm. In April 2007, Apple announced that it had sold its 100 millionth iPod. Approximately 60 million of these were sold in the United States. How many of these lay broken in drawers and closets? More importantly, do your replace or repair your broken iPod?
Glen Kashgegian, Blue Raven Technology
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Article by William K. Pollock, Strategies For Growth
What is Market Research?
Webster's New Millennium Dictionary defines market research as "the investigation and analysis of consumer needs and opinions about goods and services." However, according to the American Heritage Dictionary, market research is defined more as "the gathering and evaluation of data regarding consumers' preferences for products and services." However, thefreedictionary.com complicates matters by defining it as "research that gathers and analyzes information about the moving of good(s) or services from producer to consumer."
(7 pages)
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Article by Paul Rupnow, ReverseLogisticsProfessional.com
Planning is a very challenging area for Reverse Logistics Professionals. Predicting the future flow of product returns and the related Reverse Logistics production, inventory and parts requirements can seem to be an overwhelming challenge. However with an understanding of some of the inventory planning methods and tools, it is possible to remove some of the risk and enable better planning for Reverse Logistics teams to respond to production needs, ensure availability of parts and replacement inventory, enhance customer service and improve the financial impact on cash by improving inventory management.
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Several years ago the CDMA side of the cellphone business announced that they would be moving away from the ESN structure for mobile unit identification. The replacement structure would closely approximate the GSM IMEI structure and would be called MEID. In order to ensure easy roaming and backward compatibility, the phones would also be identified by a pseudo-ESN (pESN) in addition to the MEID. This pESN would be generated based on a cryptographic algorithms and a manf portion of the pESN would have be set to a unique value (80). Although there was some concern about collisions and billing, all in all, the program has worked well, right? Yes, except for repair.
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Excel Spreadsheet - MEID to pESN conversion information.
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Source code for the MEID to pESN conversion.
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Article by Paul Rupnow
Despite good intentions, return allowances, if not done correctly, may not be a good solution to reduce Reverse Logistics costs. Return Allowances started out as a quick and easy way for a manufacturer to give an allowance to the retailer to manage its returned items, thereby reducing the reverse logistics costs of processing, logistics and transportation for both parties. The intention of a Return Allowances was to provide a quick and easy way to negotiate a win for everyone.
However, if not thought through carefully, return allowances can have negative results for both the manufacturer and the retailer. "Very often they are not saving anyone money," explained Tony Sciarrotta, Director of Returns Management at Philips. To help you better understand return allowances, Sciarrotta, John Slothower, Manager of Innovation and Services at Best Buy and Curtis Greve, President of Retail Services at Genco Supply Chain Solutions have shared some of their knowledge, insights and secrets to achieving better return allowances.
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A few short years ago many retailers sold their product returns as salvage by the truckload for pennies on the dollar. Today, Reverse Logistics Professionals at many retail operations are achieving significant reductions in return rates, reduced processing and logistics costs, and vastly improved recovery rates on returned merchandise. At the Reverse Logistics Association Conference and Expo 2008 in Las Vegas, Best Buy, Circuit City and Wal-Mart outlined some of their strategies for tackling the returned merchandise challenge. Author: Paul Rupnow, Andlor Logistics Systems
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The state of the art for software to manage Reverse Logistics (RL) and Aftermarket Supply Chain consist of a broad array of functional models to manage various business functions including but not limited to returns management, depot repair, compliance tracking, liquidation management, etc. Although the functional requirements for RL software vary by industry, there is a general perception among some segments of the market that no single vendor offers a complete end-to-end solution for Reverse Logistics.
Author: Michael Blumberg, Blumberg Advisory Group, Inc.
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Article by Paul Rupnow
CEOs and the senior management of 3rd Party Logistics Providers (3PL) and Outsourced Service Providers need to take a close look at Reverse Logistics as an excellent strategic source of value added revenues.
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Article by Michael J. Shelor, Shelor Consulting Inc.
Ensuring the uninterrupted supply of service parts throughout a product's life cycle, meeting the customers SLAs (Service Level Agreements), provisioning, and surge demand requirements must be supported by a comprehensive service supply chain plan. This process is referred to as supply support planning.
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The best way to reduce your Reverse Logistics costs is to reduce the number of returns you need to handle. With electronics goods flowing to consumers through the retail channel, this is a particularly challenging area due to liberal retail return policies.
Author: Paul Rupnow
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When everyone else is traveling down the information super highway, more and more Reverse Logistics teams are looking to speed ahead of the competition. To achieve their goals in a competitive environment, Reverse Logistics teams are looking for assistance from Information Technology IT solutions staff, partners and vendors.
Article by Paul Rupnow, ReverseLogisticsProfessional.com (2 pages)
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In June 2008, something special happened in Amsterdam. It may have appeared to be rather subtle. It was not controversial, political, or related to global warming. On the contrary, the event was appropriate, engaging, and a necessary for the advancement of international business. It was so natural that most people did not even notice the change, and yet so significant that the impact will continue to grow for many years.
Article by John Mehrman (4 pages)
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As we approach 2009, several California state electronic waste recycling bills are set to go into effect. Also, with the switch over from analog broadcasting to digital broadcasting, it is very possible that many CRT TV owners will retire their old TV and need an outlet for recycling the obsolete equipment. A national bill is looking like less of a possibility as more states adopt their own programs. The state programs are not uniform in the least, the bills are either modeled after an Advanced Recovery Fee (ARF) or they are an Extended Producer Responsibility (EPR) bill. An ARF system collects money from the consumer at the point of purchase, such as a retail outlet like Best Buy. The EPR model holds the manufacturers responsible for the recycling.
Author: Mike Easterbrook, ARC ARC International Corporation.
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The importance of continually developing your Reverse Logistics processes and Key Performance Indicators (KPIs) cannot be over-emphasized. As you seek models, methodologies, diagnostics and benchmarks to make dramatic and rapid improvements to your Reverse Logistics operations, an excellent source of information can be found in the Supply-Chain Council's Supply-Chain Operations Reference-(SCOR) model.
Author: Paul Rupnow, ReverseLogisticsProfessional.com
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Overview of the RL Quote-RFI process
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by James Patrican, Practice Dir., Supply Chain at TCS With the recent turmoil in the financial markets and the harsh macroeconomic environment, one corner of the industry seems to be holding its own as well as providing an opportunity for companies to increasingly leverage their after-sales activities to their competitive advantage as well as generate a source of high-margin revenue.
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Article by Brian F. Eddy, SubCon Industries
Corporate Social Responsibility (CSR) is a very hot topic that affects many stakeholders and all companies. CSR touches many aspects of a company's strategic external environment and if effectively deployed, CSR can be a very tactical differentiated advantage to a firm's value creation and value-proposition model.
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Article by Dr. ir Harold Krikke
Many economists and financial specialists are fairly confident that the current recession will be over by 2010. That may or may not be true, but in fact it is of less concern that what will happen thereafter. One must look beyond the recession. What will happen next? No one knows exactly, but it is clear that we should be prepared for some more changes.
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Article by Paul Rupnow
Looking for cash? Look at your product returns. Too many companies are still fumbling through reverse logistics processing without adequate systems to collect data, supply visibility or provide the unique decision capabilities for the special requirements of processing product returns.
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Article by Ken Jacobsen At the beginning of 2007, the Reverse Logistics Association organized a committee on Standards. We became aware of certain concerns related to SEC reporting requirements that could have a serious impact on the budget reporting, and therefore the practice of reverse logistics. Most specifically, there has been a perennial issue related to warranty reserves—what is included or not included. There is no standardized definition of this function, and yet companies are required to track and report this nebulous figure.
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Overview of Warranty Benchmark Tracker
All manufacturers strive to reduce operational costs and increase profits without hindering customer satisfaction. Understanding how your warranty costs compare with your peers (and hence identify potential cost saving opportunity) can involve costly benchmark studies. The Reverse Logistics Association has partnered with MGH Consulting Ltd to produce the Warranty Benchmark Tracker; a cost effective way to provide an up-to-date and comprehensive review of warranty costs and warranty reserves across multiple high technology sectors.
The Warranty Benchmark Tracker is available free to Platinum and Silver members and at a discount for all other members.
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Article by Joe King, ModusLink
It's a fact. The derailment of the economy is keeping customers home. As the government recently reported, the GDP shrank at an annual rate of 6.3 percent in the 4th quarter of 2008 mostly due to unsold goods--as any shopper can see first-hand when encountering deep discounts at the mall. Excess inventory is affecting supply chains and will surely continue to do so in the coming months, leaving you with excess product hanging around as unwanted as the proverbial holiday fruit cake.
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Article by William Pollock and Sumair Dutta of Aberdeen Group.
The current volatile global economic climate has yielded a number of life-changing results for people all around the world, as well as for businesses of all types, sizes and market focus. Every day we seem to be bombarded with more bad economic news that affects our lives, our businesses and the customers to whom we sell our products and services.
However, there may actually be some good news with respect to the industry in which we serve. It seems that the current economic climate has brought to the forefront a vital process and function that is otherwise too often overlooked in the lifecycle of a product--the reverse component.
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Article by Michael Blumberg, Blumberg Advisory Group
Analysis of the Worldwide Market suggests that expenditures on Reverse Logistics (RL) within the Electronics Industry were approximately US $677 Billion in 2008. The US represents 20% (US $132 Billion) of the world market. RL activities in the US account for less than 1% of US Gross Domestic Product. However, expenditures on RL are dwarfed in comparison to expenditures on Forward Logistics by a 12 to 1 ratio.
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Article by John Borelli, Converge
The reverse supply chain function has filled an important role for manufacturers to control the flow of product returns back through the distribution channel. This function has become even more important in the technology space where the stakes are high, as grueling competition and razor-thin margins have already driven companies to squeeze every last dollar out of the manufacturing process. As these companies search for new ways to reduce their operating expense, many technology manufacturers still find themselves grappling with stubborn inefficiencies embedded within their reverse supply chain.
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Article by Nick Sellers, Sykes Enterprises, Inc.
In a perfect world, products would be... perfect. Never superseded, work straight out of the box, and never fail. If the world were perfect, customers would never need help and businesses would have no need for After-Sales processes.
The mention of "Reverse Logistics" conjures up the image of products returning from users to makers, having become faulty and in need of repair or replacement. When this happens for real, emotions rise and problems become real and take on greater importance.
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Article by Paul St. James
Reverse logistics has created a booming industry for liquidators and distributors that sell by the pallet through channels such as online stores, liquidation sales and deep discount retailers. Typical of the reverse logistics model, retailers and manufacturers can lose as much as 90 cents on the retail dollar for distressed inventory. When participating in a traditional liquidation process, most retailers and manufacturers are not able to receive a share of the profit made by liquidators in selling the inventory by pallet to the discount retailer; nor do they receive a cut from the discount stores which, in turn, sell the product individually. These third party logistics providers (3PLs) add to their customers' profit loss by charging for an itemized 'touch and handle' fee that diminishes revenue profit potentials by selling goods by the truckload for pennies on the dollar. In most cases, retailers and manufacturers must sacrifice control when outsourcing their asset recovery management needs, thereby becoming reliant on what is reported to them by the liquidators.
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Article by Jeremy Vick
With the current global recession and economic failures with the banking and lending industries globally, there is no doubt that times are tough. We see companies falling into bankruptcy, laying off employees, cutting costs at every turn and even shutting their doors--either as a precaution, or as an end to an era.
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Learn more how Reverse Logistics Trends, Inc. can help your company get a leading edge on the reverse logistics industry. View details of our Trade Shows and Conferences and our worldwide database.
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Overcoming Travel Restrictions: The untapped value of Inter-Office Collaboration and RLA Foundation.
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Ryder Supply Chain Services presents this whitepaper on the topic of "Outsourcing Distribution Centers" and how it offers more flexibility and less risk.
Date Written: July 2010
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Take a peek at the current industry. Reverse Logistics Trends (RLT's) just-released white paper.
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Supply chain management (SCM) and Reverse Logistics Management (RLM). Are they still in the same basket?
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"Buy low and sell high." This is the axiom upon which Wall Street and much of the American economy is based. Now it is axiomatic that a new "new economy" - one with substance and staying power - is being built upon this concept.
According to Investor's Business Daily, total online auction sales will double over the next four years, reaching over $100 billion annually by 2007. Estimates are that eBay will represent at least half of this figure (Barlas, 2003). Late last year, BusinessWeek heralded with a cover story the birth of "The eBay Economy" - a new "new economy" that has online auctions as its principal means of exchange. (114 pages)
Author: David C. Wyld, Associate Professor, Department of Management, Southeastern Louisiana University
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Natalie Rhode, JFR Innovation Group, LLC explains why Six Sigma Green Belts may be the optimal solution for small to mid-size companies.
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D.F. Blumberg Associates, Inc. (BAI) announces the launch of a new research study on the Reverse Logistics Industry.
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Authors Karen Hawks and Rich DeWaal define the data delivery guarantee and explain why experts are your best weapon in keeping staying within budget.
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Asad Haroon discusses why every organization needs to deal with surplus assets, whether it is excess inventory, end of lifecycle equipment or customer returns. The management and disposal of business and government surplus is an international and expensive problem that consumes valuable warehouse space, ties up capital, strains the environment, and negatively affects an organization's bottom line.
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Stampp Corbin, CEO, RetroBox discusses the issue of eWaste in the United States as one that can no longer be ignored. By some EPA and Solid Waste Authority estimates, electronic products constitute the fastest growing category of municipal waste. Several predictions are being made that have grave implications for the environment
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While the manufacturer organization in the consumer goods market is heavily concerned with new product development and introduction, as well as the manufacture and production of saleable goods, the general underlying assumption is that the responsibilities for sales and support to the ultimate customer are the responsibility of the distributor/retailer. In broad terms, there are three (3) major types of retail distribution channels.
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How well are you managing your Reverse Logistics Operations? How do your operations people determine the best course of action for that pallet full of returned goods that just arrived?
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Brand is the proprietary visual, emotional, rational, and cultural image that associates with a company or a product. When we think Volvo, we might think safety. When we think Nike, we might think of Michael Jordan or "Just Do It". When we think IBM, we might think "Big Blue". The fact that we remember the brand name and have positive associations with that brand makes the product selection easier and enhances the value and satisfaction we get from the product. By Donald F. Blumberg
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A Strategic Look at Merger and Acquisition Mania within the Reverse Logistics Industry by Michael R. Blumberg CRC, President, D.F. Blumberg Associates
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JFR Results focuses on the process approach for managing reverse logistics systems.
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Before you invest your time and money on a tradeshow, read this guide to learn how to make the most of it.
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This excerpt from a new focused research report from D.F. Blumberg Asssociates, Inc. discusses the market potential for repair and refurbishment facilities to acquire, refurbish and resell "retired" cell phones.
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RL Quote answers the question, "Is it cost effective to have a repair operation in a country with lower labor rates?"
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Handling product returns is tricky. Assembling technology to help you effectively manage your Reverse Logistics is even trickier.
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Telmar Network Technology is a global leader in providing pre-owned voice, data, and optical equipment for both wireless and wireline networks. Telmar's customers can realize 30-70% savings over new equipment by sourcing equipment from the secondary market. Telmar's inventory is highly fluid, with rapid turnover and same-day delivery, as quality-certified equipment from over 100 of the industry's leading manufacturers moves through Telmar's global warehouses.
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New software and systems vendors focusing on the development of new infrastructure technology and systems to support the full closed loop supply chain and reverse logistics process have emerged in the last few years.
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This article by Paul Rupnow discusses profitability improvement opportunities for reverse logistics processing.
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Brief overview of the European Union Waste Electrical and Electronic Equipment Directive.
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Brief overview of the European Union Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive.
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Transportation services represent one of the largest line item service expenditures within the global economy in general, and the Reverse Logistics Industry specifically. This market has been the focus of extensive study and research by our firm. We estimate the market for Third Party Transportation services in support of Reverse Logistics activities within North America represents a $2.6 Billion opportunity in 2005. This market is forecast to experience a 15 % growth rate over the next three years.
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Reverse logistics manages inventory that flows "upstream" --back toward a source -- to capture value otherwise lost or under-realized. Often considered the "forgotten stepchild" of supply chain planners (who tend to plan supply chains that deploy forward) poorly managed reverse logistics can be costly, and those costs can be extremely hard to discover.
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One of the best opportunities for profit in your reverse logistics operations is available in the area of asset disposition. One of the best ways to enhance the disposition value of your refurbished goods is through speed. The "Need for Speed" should be one of your top 3 objectives in your Reverse Logistics processing operations.
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Reverse Logistics Conference and Expo in Amsterdam hosted by the Reverse Logistics Association featured top notch speakers with an overwhelming amount of new data, experiences and advice on Reverse Logistics, with a European twist.
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The goal of any performance management system is clearly communicating to management data from many perspectives enabling informed decisions. Organizations must depend on the measurement and analysis of performance. Such measurements should be derived from business strategies and focus on critical processes. Performance management should cover the areas of customer, product and service; comparisons of operational, market, and competitive performance; and supplier, employee, cost and financial performance.
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by Tom Dziersk President & CEO of ClearOrbit Reverse logistics, though always a bother for any company, used to be a lot simpler. If a customer got an unwanted or damaged product, he packed it back up in its original box and sent it back to the manufacturer, which typically had all operations (manufacturer, shipping, and receiving) consolidated at one geographic location. When the product was received, credit was issued; new products sent out and old products discarded or repaired onsite.
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by Michael Blumberg, President D. F. Blumberg Associates Recently conducted research by our firm examined the current practices and emerging trends for Service Parts Return Management (SPRM) in the High Tech service industry. This research identified key requirements and needs for SPRM services, in terms of form, fit, and function, requirements, willingness to pay, and key selling points, as a function of key market segments.
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by Paul Rupnow Editor, Reverse Logistics Professional Report Today was the final day of another very successful Reverse Logistics Conference and Expo in Singapore hosted by the Reverse Logistics Association. This show featured another collection of great speakers who shared with us their data, experiences and advice on Reverse Logistics, with an Asian Pacific twist. I have created a list of some of the tips I picked up at the show with a goal of assisting you to improve your Reverse Logistics operations, whether you are an OEM, ODM, distributor or a 3rd party service provider. The Asia Pacific region is a complex market with diverse cultures and a large geographic size. These features present some very unique Reverse Logistics challenges.
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