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My Cover Story Article (Reverse Logistics Magazine)



Cisco: Optimizing the

Cisco: Optimizing the
Reverse Supply Chain to
Enhance the Customer Experience



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My Cover Story Article (Reverse Logistics Magazine) Document Transcript

  • 1. “Boothmanship” Post Show Follow Up: Avoiding the Pitfalls of International Directing Reverse Logistics – The Final Piece to Positive ROI Returns - Part 3 A Corporate Paradigm Shift Page 10 Page 42 page 38 magazine magazine (Left to Right) Bob Anderson – Manager, Global Supply Chain Management Dean Schiavone – Director, Global Supply Chain Management Mudit Agarwal – Solution Architect, Customer Value Chain ManagementEdition 22 Cisco: Optimizing the Reverse Supply Chain to Enhance the Customer Experience - page 14 Printed on Recycled Paper
  • 2. Despite the Pressures and Challenges of a Poor Economy, Businesses Are Still Planning to Speed Global Expansion Simplicity for Consumers Shepherds in Electronics Recycling Success Page 34 Opposites Attract: A Happy Marriage of Forward and Reverse Supply Chain - Part 3 Page 20 Reverse Logistics Issue 4 Volume 5 Page 12CONTENTS Go to www.RLmagazine. Magazine welcomes To Subscribe: magazine magazine com. Individual articles and abstracts. subscriptions are available Please send to: without charge to qualified individuals within the U.S.  Non-qualified rates Eric Hemming, RL Magazine will Sony Ericsson (l), publish 12 issues in and are as follows: Dr. Blanton Godfrey, NC State (r) y Happ ct: A rse Sony Ericsson Finds Lean Attra d Reve rt 2 2010 — 6 printed sites an Pa Oppo Forward Chain - ge 19 of ly Pa age Supp mer Marri Six Sigma Success with Custo s and Analytic ality ce Qu rranty Page Servi ough Wa 33 North Carolina State ting e editions and now with Boos tion thr University - pg 16 Single issue: $4.95 zin e fac azin Satis mag Beer: s of l, ma gistic the Lega s Printed on rse Lo g ion Edition 20 Reve Explorin ch Solutge 16 Recycled Paper The 2: Te Pa Part al and ation One Year Subscriptions: 6 new digital editions! Educ On the Cover Articles U.S.: $18 Hips, Knees A Rev and Page erse Sup RFID: Ins 20 ply Cha ide in Lik Orthopedi e No Other cs - Extend Service ing the Life Activit s Marke Cyc ies Pag ting andle of You Canada: $35 e 12 Busine r Organi ss Dev zation’s elop ment Providi Busine ng GE Sec Require ss with urity’s s Pag the Glo Homelan e 36 bal Log d Pro istics tec Supportion International: $70 t It mag azin e rsing “Boothmanship” Post Show Follow Up: The Final Piece to eting Reve and h it omp e Loss w ices Positive ROI C nu Reve arket S erv Afterm12 by Arte Maren To unsubscribe: email Editi on 18 Page Editio n 15 Profitable trade show returns begin with proper planning and Page 10 that must include the all too occurring error of insufficient Best Proc Buy – Tu essing rnin Page 28 into g Retu Profi rn t Cent s attention and action on post-show activities. In fact, the Center er Publisher – Gailen Vick, for Exhibition Industry Research reports that up to 80% of the Editor - Lyndsey Turner leads gathered at a show are not followed up. Copy Editor - Elvie Engstrom Manager of Marketing & Advertising - Kelli Ray Feature Article Technical Director - Luis DeGuzman Creative Design – Lyndsey Turner Directing Reverse Logistics – A Corporate Paradigm Shift Page 14 Police Use New Tools to Build Case Against “The Richmond Board of Advisors Jack Allen – Cisco Systems by Kurt Walker Reverse Logistics Association Girls” Edwin Heslinga – Microsoft by Detective Sean Smith Chuck Johnston – WAL-MART The problem is that companies simply refuse to execute on the Optimizing the Reverse Christopher Gant – Federal Express Hartmut Liebel – Jabil Global Services fact that better RL management can be as important, or possibly In the past few years, criminals at all levels – from simple Dr. Dale Rogers – U. of Nevada, Reno Page 39 Supply Chain to Enhance Page 22 shoplifters to those involved in organized retail crimes – have Bernie Schaeffer – Motorola (depending on case) more important to the profits of a venture as is Doug Schmitt – Dell solid design, marketing or flawless to-market execution. One major been taking advantage of the latest technologies as they go about the Customer Experience their business. Tony Sciarrotta – Philips Consumer Electronics flaw in the RL model is that there are so many competing voices Susan Wackerman – Hewlett-Packard within the RL space. Adds millions of dollars to For more information on the Board of Advisors, go to Cisco’s bottom-line Bad Economy May Not Be So Bad for Third Party Service Editorial and Circulation Office Survey Providers 441 W. Main Suite D Lehi, UT 84043-2024 This survey, consists of two questionnaires; one from the customer by Micheal Blumberg Phone: 801-331-8949 perspective (OEM/retail) and one from the 3PSP perspective. The by Bob Anderson & Fax: 801-206-0090 questions are similar for comparative reasons. The results enable us to Mudit Agarwal Most people want to know how the current economic state of provide state-of-the art information on returns volumes, returns causes Page 31 affairs will affect the business they are in and their personal BPA Worldwide Membership Applied and processes and RL services. By taking this survey you make a fortunes. The Reverse Logistics & Aftermarket Service Industry for March 2009. Page 45 significant contribution to the body of knowledge. is not immune to this situation. Printed in the U.S.A. Three years ago, Cisco implemented ISSUE 4 VOLUME 5 foundational changes in the Reverse REVERSE LOGISTICS MAGAZINE Supply Chain space to develop and (ISSN 1934-3698) is published bi- Features Avoiding the Pitfalls of International monthly for $18.00/per year by build an end-to-end solution that would Reverse Logistics Association located Returns Part Message from the 6 enhance both the customer experience at 441 W. Main Suite D, Lehi, UT Focus Committees 37 President 3 and unlock the value from product by Tom Stanton, AFMS 84043-2024. Periodical Postage returns. The focus would include Paid at Lehi, UT 84043 and additional mailing offices. Advisory Board 7 Technology Spotlight 41 changes in Asset Recovery, Receiving This is the third in a series of articles and Disposition, Recycling, and Order Page 42 POSTMASTER: Send address on international returns. In the first changes to REVERSE LOGISTICS Management processes. A major Industry Committees 8 Technical Trends 46 article, the topic discussed was the problem of not preparing for MAGAZINE, 441 W. Main Suite D, challenge for the team was to create Lehi, UT 84043-2024. flexible and scalable solutions to address potential returns of previously exported merchandise. And the Edition 22 published April 2010. customer satisfaction. second article focused on country of origin and classification. Industry Events 33 Advertiser Index 49 This installment is a short summary of the information provided The information presented in this publication has been provided by in the first two articles. corporations and is believed to be Read the Press 36 Returning Thoughts 50 accurate; the publisher cannot assure its completeness or accuracy. Copyright © 2010 by Reverse Logistics Association. All rights reserved. Reproduction in whole or part without permission is prohibited.4 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 5
  • 3. Reverse Logistics association Reverse Logistics association Message from the Publisher Board of Advisors The foundering economy around the world has everyone wondering what will A Board of Advisors comprised of industry experts has been set up to monitor and assist the Reverse happen next. In the past the only time I heard about Greece was someone’s vacation Logistics Association management team in making informed decisions. Advisors include: plans, now everyone talks about Greece as a financial burden, who would have Dan Gilbert – his responsibilities include Returns, Imports, Services. Previously, Doug held executive and thought? I was in Brazil last month and I found the economy there was growing at Cisco Systems Exports, Tires and Printing and Mailing senior management positions in service and an unbelievable rate! Distribution. finance at Dell, Inc. Dan Gilbert is VP of Worldwide RL at Cisco Hartmut Liebel – Doug came to Dell in 1997 from Sequent Is the economy getting better or worse? Depending on whom you ask, existing Systems, Inc. His charter Jabil Global Services Computer Systems where he held various when joining Cisco in 2005 senior level finance positions. Before Sequent, government administrations say better, opposition parties say worse! But no matter was to define and create a world-class reverse Hartmut Liebel was named Doug worked in the banking sector. what is happening, now is the time to cash in on the demand for Reverse Logistics logistics organization. Dan’s global team is President, Jabil Global responsible for driving excellence in product Services (JGS), in October Tony Sciarrotta – Philips vendor services & solutions. recovery, receiving, inventory, and recycling 2004. He joined Jabil as Consumer Electronics operations, and for transforming returned Executive Vice President in July 2002 and was Back in 2008 I stated, “Now is the time for companies to be ramping up marketing efforts to increase visibility product into value for Cisco shareholders. named Chief Operating Officer in October Tony is Director of Returns 2003. Management at Philips and gain attention of manufacturers and retailers. I constantly hear that many manufacturers and retailers Christopher Gant – Consumer Electronics North want to outsource programs.” So don’t slow down, it is time to accelerate your marketing efforts and finally FedEx Dr. Dale Rogers – America. In this position,Tony Univ. of Nevada, Reno leadsreturnsreductionandentitlementinitiatives outsource that program this is costing you way too much. Chris Gant is Director for formainstreamconsumerelectronics,and is also FedEx Supply Chain Sales. He Dale Rogers is the Director currently concerned with further driving the is responsible for all business of the Center for Logistics implementation of electronic registration for That is what we are doing here at RLA, we are increasing our support services in order to be Management and a Professor Philips products at leading retailers.Working development strategy and meet the increase demand from our members. I want to announce 2 new support solutions; execution for both the FedEx SupplyChain of Supply Chain Management with Philips Sales, Service, Marketing, and Systems and FedEx Emerging Products Sales at the University of Nevada. Dr. Rogers is the Philips Business Excellence Group, Tony teams. a frequent speaker, a consultant to several is helping drive several teams to improve Kurt Walker, Director of Special Events is developing educational networking leading firms, has been published in several the consumer experience and subsequently events in the form of seminars & workshops, while at the same A 20-year veteran of transportation, logistics logistics journals and has published several reduce the high rates of products returned and electronic commerce, Chris has extensive books on logistics and reverse logistics. His with no defect found. time managing our international speaker’s bureau. expertise in the development and delivery of current research interests are focused on the complex supply chain solutions for some of following: reverse logistics and returns, supply Susan Wackerman Kelli Ray, Manager of Marketing & Advertising for the world’s largest corporations inclusive of chain technologies, e-business supply chain – Hewlett-Packard both Forward and Reverse Logistics. He be- management, and supply chain management. Company Reverse Logistics Magazine, is developing a series of gan his career with FedEx Ground (formerly marketing solutions for companies to gain exposure on RPS) in 1989 as an operations coordinator Bernie Schaeffer – Motorola Susan Wackerman is current- before joining the company’s sales team in ly a Sr. Operations Manager a global basis, while promoting products and services. 1991. He quickly rose through the sales lead- Bernie Schaeffer is corpo- in the Americas Supply ership ranks, holding the posts of area sales rate VP of Global Repair for Chain for HP’s Imaging and Printing Group. Motorola’s Integrated Supply In her position, Susan is responsible for the Gailen Vick manager, district sales manager and senior Chain, which encompasses national account manager for FedEx Ground. Recycling Operations for HP Americas and RLA President the global operations associ- the Returns Operations / Remarketing for Edwin Heslinga – ated with procurement, new HP Americas Imaging and Printing Group. Microsoft product introduction, manufacturing, custom- This includes supply chain development, re- er fulfillment and repair. He is responsible for verse logistics, disposition and processing, repair and reverse logistics operations across refurbishment, resale, channel management. O Edwin is currently theOUR MISSION Director of Global Services all Motorola businesses worldwide. His team For Recycling Operations her product re- ur mission is to educate for innovation in developing the least. Yet that is exactly providers have found that of Microsoft Devices – Zune provides both in- and out-of-warranty re- sponsibilities cover all HP product categories and inform Reverse and implementing new RL what the Reverse Logistics RLA resources help advertise pairs, is the fulfillment engine for maintenance including inkjet and laser printing, digital imag- and Xbox. In his position, Edwin is responsible Logistics professionals processes. We have been and Association provides through their services to a regional and agreements and other value-added services, ing, supplies, scanners, shared printing, PCs, for development and enforcement of policies around the world. RLA focuses will continue to provide our our membership services. global audience. OEMs like surrounding returns, all related costs to the manages asset recovery on equipment re- notebooks, desktops, servers. on the reverse logistics services to the industry at a We serve manufacturers and Microsoft, HP, RIM, and Sony, returns and is also involved in the Customer turns and is the source of information on processes across all industries. moderate price. retailers in a variety of settings along with Retailers like Wal- Satisfaction Continuous Improvement product field reliability. M No matter the industry — High while offering ongoing updates Mart, Canadian Tire, Tesco and Council. Working with Microsoft Call Center anaging the latest and the Microsoft Manufacturing Operations, Doug Schmitt – Dell Complete biographies of Advisory Tech, Consumer Electronics, on market trends, research, Best Buy all participate at our information in Edwin is driving the improvement of consum- Board Members are available from Automotive, Medical/ mergers and acquisitions events. Through RLA Events, er satisfaction through agent assisted support Doug Schmitt serves as Pharmaceutical, Food and services such as and potential outsourcing RLA Connect services and our VP of Dell’s Global Field the RLA site at: and on-line support while managing the costs. repair, customer service, Delivery organization with Beverage, Apparel, or other — opportunities to 3PSPs. We publications – RL Magazine parts management, end-of- Charles Johnston – international responsibil- www.ReverseLogisticsAssociation. our goal is to provide RL process have gained the attention of and the Weekly News Clippings ity for global break/fix field life manufacturing, service WAL-MART Stores, Inc. org/company_advisory.php knowledge to all industries. 3PLs like FedEx, DHL, USPS email – we help OEMs, ODMs, engineers, same day service We want to educate everyone logistics, field service, returns and UPS. 3PSPs like Teleplan, Branded and Retail companies delivery, spare parts depots, parts planning, Charles Johnston is General processing and order fulfillment service logistics, repair, reverse logistics and about the Reverse Logistics Foxconn, Flextronics, Canon, find service partners and Manager at the Bentonville processes that are common to (just to name a few) can be Sony and Jabil, along with small- solutions providers that were Return Center, WAL-MART Dell’s global command centers. In addition a little intimidating, to say Stores, Inc. Chuck has been to Doug’s role as VP Global Field Delivery all industries and to be a catalyst and medium-sized service previously unknown to them. he has responsibility for Americas Support with WAL-MART for the past 14 years and6 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 7
  • 4. Reverse Logistics Association Industry Committees • Steve Vertun, Segue MasterWorks International • David Liscom, Hyper • John McGurk, GlobalWare • Glen West, Celestica Focus Sub-Committees are set up to • Steve J. Miller, Advanced • David Liscom, Hyper Microsystems Solutions • Dennis Cain, DEX provide a standing forum for Reverse Communications Technology, Inc. Microsystems • Pete Carfrae, AKS Consultin • Don Kaufman, • Bob Hathaway, Telecycle Logistics Professionals to meet on a • Dave Keltner, Cerqa • Herman Goemans, Sprague • Edward J. Higgins, MasterWorks regional and global basis and discuss • Ishak Kang, Vox UI, LLC Daniel Silva, Flextronics Wireless International Food & Beverage common Reverse Logistics issues • Ray Agarpo, Hewlett-Packard • Paul Knight, CNE Direct, Inc. Chairperson - Dan Gardner, ATCLE • John McGurk, GlobalWare Chairperson - Bruce Stevenson, at the RLA Conferences & Expos. • Brian F. Eddy, SubCon Industries • John Driscoll, DDG Committee Members: Solutions RMS Inc Focus Sub-Committees educate the • Mark Blevins, Toshiba • Tom Steiber, SemiWest • Art Teshima, DEX • Dan Gardner, ATC Logistics & Committee Members: industry on reverse logistics: • Craig Sulton, Home Depot • Bob Sullivan, The Wireless Source Electronics • Carl Dubose, PepsiCo • Brian Pollock, Toshiba Digital Imaging & Video • Al Mahesh, Service Central • Pete Carfrae, AKS Consulting • Oliver Hedgepath, University of • “Best Practices” • Tony Sciarrotta, Philips Chairperson - Larry Maye, Precision Technology • Dick Kluis, Servigistics Alaska • Consumer Satisfaction Issues • Edward Higgins, MasterWorks Camera & Video • Joseph Tarantino, Sprint Nextel • Vibhore Arora, Infosys • Stacie Perez, HJ Heinz • Regulations on a Worldwide & International • David Liscom, Hyper • Bill Kenney, OnProcess • Jeff Seaman, SCI Group • Lori Kleinschmit, ConAgra Foods Regional Basis • Pedro Mauricio, KEylab Microsystems Technology • Jake Ducey, CertiCell • Sharon Joyner-Payne, Carolina • Processes that can Reduce Costs • Charles Chappell, DEX • Chris Griffin, Sprint Nextel • Sreevathsa, The Service Solutions Logistics • Ishan Irani, TPG E-Retail & Retail • Silveira Guerra, Keylab - Nokia • Scott Hertel, UPS • Tom Marcellino, Inmar • Dan Gardner, ATC Logistics & Chairperson - Craig Sultan, • Ishan Irani, TPG • Larry Worden, CertiCell LLC • Misty Hicks, Americold Industry & Focus Committee Electronics The Home Depot • Dave Vikartofsky, Advanced • Blake Vaughn, Brightpoint • Gene Bodenheimer, GENCO Advisor - Kurt Walker, Reverse • David Liscom, Hyper Microsystems Co-Chair - Pat Sullivan, Inmar - Technical Service • Ted Gardham, Elcoteq • Joe Walden, University of Kansas Logistics Association • John McGurk, GlobalWare CLS Reverse Logistics. • Andy Chuang, ZyXEL Telecom • Tad Anderson, CH Robinson Solutions • Curtis Greve, Metreks Inc. Communications Corp Chairperson - Gary Cullen of 4PRL Worldwide Apparel • Don Kaufman, Chairperson - Matt McGrath, Carolina • John Beyers, United Radio Home Improvement Home Logistics Services • Pete Carfrae, AKS Consulting Marine Electronic Equipment • Mattress, Bed & Furniture • Pete Carfrae, AKS Consulting • Vibhore Arora, Infosys • Dave Vikartofsky, Advanced • Jewelry & Watch • Anil Bakshi, Dell Technical Services Automotive • Bert Munnikhuis, Genco Medical/Pharmaceutical RLA Advisor - Lyndsey Turner • Raul Castilla, Walmart Notebook/PC Chairperson - Michael Blumberg, • Austin Rappe, Inmar • Joe Desormiers, Inmar • Vibhore Arora, Infosys Blumberg Advisory Group • Charles Chappell, DEX • Shibesh Banerj, Tomkins • Jeff Seaman, SCI Group • Robert Ticknor, Services • Dave Vikartofsky, Advanced • Charles Dunton, ATC • Edward J. Higgins, Innovations Group Technical Service MasterWorks International • Dan Gardner, ATC Logistics & • Kurt Witek, YRC Reverse Appliances - White Goods • David Liscom, Hyper Electronics Logistics Jesse LaRose, ESE Solutions Microsystems • John McGurk, GlobalWare • Dan Gardner, ATC Logistics & Solutions Aviation Data Storage Electronics Chairperson - Bernie Gagnon, Chairperson - Ed Inal, Western • Cyrille Regardin, Sony Medical/Electronics Best Practices Expeditors International Digital • Ishan Irani, TPG • Eric Miller, Agnitio Management Committee Members: • Mike Joy, Tech-Ed Networks Consultants Consumer Electronics • David Lick, Seagate Technology • Pete Carfrae, AKS Consulting • Jeff Seaman, SCI Group Chair - Jack DeButts, Dell, Inc. • Gary Gear, Toshiba • Joyce Qiao, Pega-Service Co-Chair - Mary Ellen Daniels, Itran • Glenn Grube, Moduslink Sporting Goods Founding/Past Chair (2007-2008) - • Wes Stott, DEX Office Equipment Athletic/Outdoor Gear & Apparel Christopher F. Fabian, Professional • Doug Pratt, Iomega • Derek Scott, Canon Europa N.V. Bicycles & Accessories Service Solutions, LLC • Kevin Arra, Onelife Digital Fitness Equipment • Jodi Meyer, Swiss Colony • Vladermir Gatti, Pandisco Photographic & Optical • Pat Sullivan, Inmar • Jack DeButts, Dell Information Equipment • Doug Houle, DHL • David Douthet, Accenture • Herman Goemans, Sprague • David Liscom, Hyper • John McGurk, GlobalWare • Stewart Park, USACO Magnetic Europe Microsystems Solutions • Adam Joel, TIC Group Australia • Mike Joy, Tech-Ed Networks • Bita Salimian, Video Audio • John McGurk, GlobalWare Television and Display Devices - Specialists, Inc. Solutions Brown Goods Focus Committees & Regional • Joel Jacobs, Millennium 3000 Ltd. • Edward J. Higgins, • Charles Chappell, DEX Focus continued on to page 378 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 9
  • 5. Article returning home. This prospecting type call would then determine the level of continued interest and if there a call is warranted from the sales person, it is turned over to the sales rep thus ensuring rapid response. Note: The prospect has met with many others who may be providing the same products or service. The name of the game is “firstest with the mostest”. • All leads are followed up, at information prospects need ideally the back of the business card or a minimum by email. None are sent to prospects even before you notebook wherein the data is stored ignored. A visitor to the booth return. with full info on the nature of the may have seemed disinterested conversation with the prospect as but perhaps that was simply the • You must have a purchased mailing memories often fade. The business start of negotiation. A decision to list of all likely attendees and indeed card would be stapled onto the wait could change in a moment all potential customers regardless if page of the book and all pertinent based on some environmental of at the show or not so that a follow data written below the card. AND business factor. Any salesperson up mailing/newsletter can be sent, THE BOOK IS ENTRUSTED knows the liability of making any indicating that you missed them at TO ONE PERSON AND NEVER kind of assumption or attempting the show but….. OUT OF SIGHT. to pre-judge. All booth attendees should get a follow up email within • Following standard • Some companies have employed the 48 hours with a thank you, re- “Boothmanship” procedure, the procedure of having an assistant or statement of the offer and any other leads obtained at the show would even an outside call center make the personalized comment you may have reminder notes either on follow up contact call directly after wish to make. “Boothmanship” Post Show Follow Up: The Final Piece to Positive ROI by Arte Maren Profitable trade show returns begin with and opportunities missed. There are There is quite a bit of excitement and proper planning and that must include hard won rules, guidelines that must be energy prior to the show; the preparation, the all too common error of insufficient attention and action on post-show followed in order to ensure a successful show, regardless of all other factors. design, literature to create, prospects to invite to the booth, etc. And then there Up to 35% activities. In fact, the Center for As you are already at the show reading is the manning of the booth itself, the Exhibition Industry Research reports that up to 80% of the leads gathered at this article, I will address the post-show key factors which all revolve around a meet and greet, the presentations, the connections, the socializing with those of your bottom line a show are not followed up. Amazing. system, without which, there is scant in the industry. And the intensity keeps And the reason usually traces to a failure to plan well. (You have heard time to follow up properly considering there was generally already a backlog rising until the show is over at which point the intensity begins to fall off, may be under attack. the adage, if you fail to plan, you plan of activity even before you left for the when in fact, the intensity should to fail. So true. show. continue on and through the connecting to all leads, the follow ups and the sales! While it may be convenient to put the “Better Boothmanship” requires that responsibility for exhibitor success attention is paid to the “rhythm” of the • There should be a system set up onto the show, there are often major entire trade show process, or what I refer prior to the show so that leads procedures omitted by the exhibitor to as “the trade show intensity curve” are sent back to the office and 10 Reverse Logistics Magazine • Edition 22 To learn more visit:
  • 6. written procedure for the future, 7th Annual what did not work well and is in need of improvement and a review of statistics overall which would RLA Conference & Expo Singapore include the number of visitors to the exhibit, the number of “hot Concorde Hotel, Singapore • September 27-29, 2010 prospects”, the number of full Asia’s premiere Reverse Logistics Event will bring three full days of Reverse Logistics. presentations and, of course, actual Starting on Monday, September 27, with RLA Workshops and continuing on Tuesday sales made and orders taken. A and Wednesday with sessions and exhibition. review would be done of the booth appearance and presentation, a review of photos you may have A wide range of leading regional and global Reverse Logistics companies are in taken of competition (always a attendance from repair/refurbishing to recycling/e-waste and transportation logistics. good idea), competition analysis in general etc. Be sure to visit the Exhibition Hall where ODMs and OEMs will be looking for Third Party Service Providers (3PSPs) • The executive review would entail that can manage Reverse Logistics in the Far East, along with all of the above but would include identifying solutions for Europe and the Americas. There a personnel evaluation in terms of will be many exhibitors showcasing their Reverse Logistics the general productivity of those services and solutions. This is a rich opportunity for OEMs representing the company. Their and Branded companies to identify future service partners. individual reports of the event would be a factor in evaluating the show itself and their performance. • All financial factors are added up and a summary made for future reference and planning for the next show. SINGAPORE • A detailed checklist (love those checklists) can and should be created so that no important aspect RACING is missed. networking There are several KEY factors to a successful and profitable show. Leave event out any one, and the results are less than expected. Pre-show planning; personnel training; logistics for the show; at show procedures and post show activities, well executed are what such as those who need an info “Better Boothmanship” and improved• Do not get caught in the “excuse pack, those who should be called, show profitability are all about. trap”; “well everyone is just etc. and making the priority the RLM returning so I will wait” or “I am category. really backlogged, I will get to it • The leads are recorded in a database next week” or “they have plenty to which then can be reviewed a month Arte Maren is read from the literature I gave them, later, 6 months and even years. If an expert in if they are interested they will call an attendee you met became an maximizing trade me”. These incorrect assumptions account even a year later, the credit show efforts are very costly and negate all the would still go to that show and and was a recent hard work that was done to create therefore would reflect well on the presenter at the the leads. ROI for that show. Without such RLA Las Vegas tracking, this data is lost. trade show. He conducts training in trade• The leads, broken down into A, B show planning and execution as well as or C or 1, 2, 3, in terms of potential • A “debrief” is done by any and all customer service, sales and company and the priority leads distributed. employees or execs connected to organization. He can be reached at 727 There is also the system of breaking the show providing key data on 643 4638 or down the leads into categories, what worked well and should be If you are a Reverse Logistics professional – don’t miss this event! For more information and complete details, visit Attendees may register online for Workshops12 Reverse Logistics Magazine • Edition 22 and the Conference and even book flights and hotel. Exhibitor space is available for purchase as well.
  • 7. COVER ARTICLE figure 1 - P ro cess Familie s ( Re ver se Supply C hain) prospective suppliers was conducted. to support aggressive time to market weekly product returns averaging less The major selection decision points strategies by leveraging the existing than 1% of the weekly ship volume. were: business to business (B2B) interfaces, This averages 30,000 product returns resulting in reduced Total Cost of per week, excluding products from Optimizing the Reverse Supply Chain to Enhance • Global footprint – ability to scale globally Ownership by as much as 30%. consumer acquisitions such as Linksys and Scientific Atlanta. Cisco recycles • Process Capability – ability to scale Cisco’s reverse supply chain manages about 22 million pounds of return the Customer Experience Adds millions of dollars to to changing business needs and maintain high levels of process efficiency by Bob Anderson & Mudit Agarwal Cisco’s bottom-line • System Integration Capability / Flexibility – ability to integrate multiple technologies utilizing You are 1 degree of separation Establishing good relationships with our customers depends on quality is also seen in the Reverse Supply Chain and needs to be considered when • Create global footprint for reverse supply chain flexible architectures, scalable to from changing your world. meet future business requirements interactions, involving unique andeasy building the Reverse Supply Chain. • Provide better operational to use systems and processes. The reverse Three years ago, Cisco implemented ownership and accountability • Cost – ability to provide a cost Which 1 will it be? effective solution, regardless of logistics cycle is a key touch point for foundational changes in the Reverse • Consolidate recycling vendors to volumes customers - a foundation process that Supply Chain space to develop and provide cost effective recycling 76 affordable degrees of distinction – 100% provides opportunities to influence and build an end-to-end solution that • Reduce brand protection and grey improve customer loyalty. Providing would enhance both the customer market risks Imple mentat ion H igh light s online, including: the winning customer experience is experience and unlock the value from • Maximize reuse opportunities, both Delivery on the Reverse Logistics Transportation & Logistics Management more challenging when thecustomer product returns. The focus would internal and external Transformation charter is a long-term, multi-phase initiative. The initial Information Technology Management can’t return the product and get their include changes in Asset Recovery, • Optimize asset recovery and reduce money back right away. When a Return Receiving and Disposition, Recycling, potential leakage phase laid the foundation for the end- Business Administration Material Authorization (RMA) needs to and Order Management processes. A • Improve process efficiency and to-end vision and delivered a globally Management be created and approved, it can take a major challenge for the team was to problem resolution (80% of time consistent, scalable and reliable process longer time for the customer to receive create flexible and scalable solutions spent on 20% of the volume) with connected system(s) for Inbound their money back. to address customer satisfaction. Cisco Logistics, Receiving/Disposition, Let us help you get started today. partnered with a new supplier to meet As part of the initiative to build end- Inventory Management and Value 1.877.777.9081 Cisco has a complex forward supply the following objectives. to-end reverse supply chain, Cisco Recovery of returned products. The chain—a widerange of products, partnered with a new supplier. Selecting benefits of the initial phase included most of which are customized to meet • Providing end-to-end data the right supplier makes a huge enhanced customer experience customers’ specifications, and a large integration and visibility difference when building a distributed with real-time supplier integration, number of acquisitions that use different • Improve recovery rate of material solution. At Cisco, an extensive RFI/ streamlined end-to-end processes for systems and processes. This complexity after RMA booking RFP/RFQ and bidding process of increased efficiency, and the ability 14 Reverse Logistics Magazine • Edition 22 Respected. Affordable. Online.
  • 8. primary objective with holding level for each this process is to preserve product, calculated by as much of the product’s taking the difference functional value as between forecasted possible instead of driving supply and demand product to its lowest use based on historical scrap. Process analysis data, and adding a steps included identifying Safety Stock level the best scenarios for over a given planning extending product life cycle. Anything in and then implementing excess of the the systems that will enable the collection, “Maximum Level” sorting, and channeling would be recycled of products for best and instead of being highest use There are received into numerous combinations inventory, allowing of these properties taken the business to run into consideration before as close to run rate the final disposition sub- as possible. By inventory is decided. implementing such a solution in the I n v e n t o r y reverse supply chain, M a n ag e m e n t: Manage maximum value inventory of Damaged is delivered while testing and re-packing. Cisco has built a customers.material in alignment with Cisco’s returning the material. This capability Goods (DGI)/ Finished controlling the overall operating costs. tool for users to request inventory from • Increased the volume of returned,philosophy of social responsibility. will help connect Cisco with customers Goods (FGI) and management of the returned materials. Internal customers unusable material being recycled.An extensive process analysis was and maintain all records of each touch Purge/Scrap process. Interactions with With changes in this process family, it place their request on the tool, and a By having end-to-end integration,done to identify disconnects and point with the customer. Tools provided partners are built on industry standard helped Cisco to increase end -to-end complex set of rules allocates inventory there is 500% increase in costgaps. The results were organized into by multiple vendors were evaluated B2B messaging to facilitate receiving, data visibility and increase product to match demand. The engine allocates avoidance. Recycling aboutmajor process families and associated but none of them were addressing the disposition, inventory and order reuse opportunities while carrying inventory to the customer in multiple 22 million pounds of returnedprocesses: requirements. The decision was made management. By design and process only required level of inventory in the passes before generating the final material through environmental to create a tool, which will assign open improvement the messaging issues warehouse. allocation plan. friendly processes, supportingInbound Lo gis tics : Management RMAs to agents, build contact lists, are minimized so the Cisco Enterprise Cisco’s commitment to socialof product returns in transit to receiving keep track of customer touch points, Resource Planning (ERP) and partner O rder M an age ment: This process With changes in this process family, responsibility.locations. As mentioned earlier the and help facilitate conversations with Warehouse Management System is for internal order fulfillment from it helped Cisco to increase end-to-end • Upfront determination of productmaterial recovery rate was very much customers. (WMS) are in sync all the times. To the returned product inventory. One data visibility and increase product disposition helps reduce warehouseless after the RMA booking. After doing ensure further process integrity, an of the reasons for product returns in reuse opportunities. inventory and expedite the orderan analysis, it was discovered that there By creating this tool, product return offline interfaces were built to compare this process family, and largest by management process.are times when the customer needed a rates increased dramatically to over inventory in both systems and keep it in volume, is Stock-Rotation. In this Benef its fro m t he R ev ers e • Recovery rate increased to 80%,reminder to return the material, and other 80% and Cisco was able to recover sync to minimize issues in the follow- return scenario the product returned is Supply C hain T r ans for mat ion hence reducing grey market andtimes when customers needed more more products from the customer. It on processes. brand new, sealed and can be deployed • Reduced the cycle time between brand protection in the return process – identifying enhanced customer satisfaction and or reused without going through any RMA booking and credit issue to • By redeploying products afterthe return location, label printing etc. also helped Cisco in reducing brand One of the most difficult challengesTo solve this problem, Cisco decided protection and grey market risks. of recovering value through reverseto create Proactive Asset Recovery supply chain channels is product mix.capabilities to help the customer in Re ceivin g & D is p osit io n : The Along with the traditional difficulty in forecasting customer demand, there is the added complexity of unknown and extreme volatility in the supply chain. This is amplified in a high product configurability environment, making larger inventories holds necessary. A Maximum Inventory Product Mix Management solution was created with the goal to maximize the number of customers that can be satisfied while minimizing inventory. The tool does so by setting a maximum inventory16 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 17
  • 9. few things, which Supply Chain. In many enterprises Cisco has already the challenge of managing returns is started working on in order to align with Cisco vision looked upon as a burden when in fact, if planned and done properly, it can be an opportunity to create a positive REVERSE LOGISTICS MANAGE RETURNS BETTER and strategy. experience for the customer and can set a foundation of re-use and cost avoidance Em e r gi n g that saves the organization unneeded Ma r k e t s : As spend. By concentrating on the Reverse Cisco expends Process,one can actually enhance the business in overall customer experience while emerging market, unlocking the true value of the product. we have to align returns processes Product Returns should be viewed as an accordingly. opportunity and a commitment to the Understanding development of a robust set of policies the local markets/ and processes that delivers an increased government positive experience for customers and a regulations platform for overall cost improvement. and extending It must be understood that the customer current processes/ experience does not end with the sale of capabilities in order the product and its subsequent use, but | 877-272-1054 | to meet demand of is in fact extended through the return local markets will process. The idea that returns equal be pivotal. undesired costs does not always hold DHL offers a full suite of services for returns & repair true. By unlocking the value of returns, programs. Our solutions allow you to optimize the • Acquisition the process could lead to profit and reverse supply chain for improved efficiency. Strategy: Cisco is internal cost reductions. return, millions of dollars were big on acquiring RLM added to Cisco’s bottom line. In companies that enable us to 2005, the Cisco returns business accelerate our market and industry Bob Anderson – Senior was a cost center---by 2009 the leadership position. To date Operations Manager, business made a net contribution Cisco has completed over 135 Global Logistics, Cisco of $147 million to Cisco’s bottom- acquisitions. When Cisco acquires Systems. Bob has 16• line. Improved Process Efficiency and a company, the challenge is to integrate the return vendor in Cisco years of High Tech Industry experience Interested in Networking? Reduced Transaction Cost By ~ Reverse Supply Chain. A flexible in Reverse Logistics, 30% architecture is needed to support Manufacturing Planning and Supply• Improved Process for Product the rapid on-boarding of new Chain Management. Over the last five RLA Seminars are one-day events held around the world that bring RL Reuse. In 4 years from 2005 to vendors from acquisitions. years he led the team that transformed professionals together to address specific industry topics pertinent to 2009, operating expenses are down • Web Services: Cisco faces the Cisco’s Global Reverse Logistics challenge of distributed business approach and footprint. OEMs, Retailers, and 3PSPs. The highlight of these events is a facility from 119% to 29% ; Reuse has gone up from less than 5% to 44%, process execution and maintenance, tour showcasing efficient return, repair and services operations from because of multiple systems Mudit Agarwal – giving another life to the product involved in the return transaction. Solution Architect, industry leaders such as Best Buy, HP, Walmart, Motorola and Dell. before it was scrapped and saving the environment. Cisco is building a web-services Customer Value Chain to execute business logic in one Management, Cisco• For the first time in the last 4 years, system . Systems. Mudit has over Upcoming RLA seminar will be: Customer Satisfaction went above the target of 4 (on a scale of 5) to 13 Years of industry In closing, end-to-end data visibility, experience in Reverse Salt Lake City • July, 2010 4.21, which is a huge success. reduced transaction time and operating Logistics, Customer RelationshipWhat is Next expenses resulted in customer Management, Unified Messaging andAs Cisco enters new market segments, satisfaction numbers to go up. Cisco will Telecom. He has expertise in software Lexington, Kentucky • August, 2010explores emerging markets, and acquires continue to improve Product Returns by development lifecycle, solution Facility Tour Sponsored by:more companies, the challenge will providing better tools and processes and architecture, building and managingbe to continue to enhance the reverse further enhancing customer satisfaction. architecture roadmaps. Over the lastsupply chain capabilities and optimize Product returns occur for many reasons - 4 years at Cisco, he has been leadingprocesses. Cisco is always considering distributor inventory rotations, proactive solutions architecture efforts, providing Lebanon,Tennessee • October, 2010alternatives, innovating new solutions, Trade-In and Upgrade programs and solutions and helping businessand developing better architectures to warranty returns, are some of the ways grow in Reverse Logistics, Accessmeet tomorrow’s challenge. There are products get introduced to the Reverse Management, Risk Management areas.18 Reverse Logistics Magazine • Edition 22
  • 10. R L A S ã o Pa u l o, S u ccess at L at i n A m er i ca ’ s largest Reverse Logistics event!Brazil 2010 RECAP Highlighted Speakers David Novak - The Reverse Logistics Association held Director International it’s inaugural Latin American Conference Strategic Relations, Assurant Solutions and Expo April 14th-16th in Sao Paulo Harvesting Value out of Brazil –and it was a resounding Defective Returns success! Heriney Queiroga, - Consumer Care Manager, Philips Panel Discussion: Attendance blew away all Exhibitors & Sponsors Asset Recovery and expectations with over 230 Returns Management registered attendees and Nick Patterson - over 125 companies Americas Logistics represented! Companies Manager, Dell A Hitchhikers Guide to RL like Dell, HP, Motorola, Packaging – discussing a Correios, Phillips, Teleplan, 12 month Dell success story and Cisco all participated Euripedes Gomes - LAR Go-to-Market Supply to discuss RL issues on an Chain Manager, HP international platform, and Think Forward! Challenges of a Forward many new international Logistics Problem with a Fitting RL relationships we made. RLA Solution is excited to go back to Brazil Jose Faria - Board Director, for the 2nd Latin American Cellbrass Case study: Nokia After Conference next year! Sales - A success case in the EMEA Region Gotthard Haug - Ricardo Fógos - CEO, Teleplan Corporate Sales Office The value add of a Postal Orders Correios dedicated After Market Service Provider - What Improving the does the customer expect today? Performace of Post-Sale Robert Krautheim - President Technology Global Juliana Seidel - DHL Global Customer Environment Senior Solution Specialist, TetraPak Next level of Service Parts Environmental Solutions Logistics and Return Logistics to RL Packaging20 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 21
  • 11. ARTICLE Police Use New Tools to Build Case Against “The Richmond Girls” by Detective Sean Smith The economic downturn means As a Sacramento, California Sheriff’s technology that has- been developed business is busier than ever for detective assigned to the Sacramento has become our most valuable asset law enforcement. The reasons are Valley Hi-Tech Crimes Task Force, in leveling the playing field. One obvious; as unemployment has these crimes are dealt with every day. unique technology employed is an increased and the job outlook has In the past few years, criminals at online product database called SIRAS grown worse, more people, even all levels – from simple shoplifters P.I, which has been developed by normally law-abiding citizens, are to those involved in organized retail a company, called SIRAS, and is growing increasingly desperate and crimes – have been taking advantage provided free to law enforcement are turning to crime. of the latest technologies as they go agencies. about their business. Fortunately, 22 Reverse Logistics Magazine • Edition 22
  • 12. In the case of the Richmond Hoping for the best, the computer’s Additional forensic examination It also allowed the task force detectives Girls, the team had been serial number matched a number in of the computer revealed a list of to do something rarely experienced, alerted by investigators to the tracking database. Because the compromised credit card numbers, and that was to return the merchandise a Target store that had seen computer – and many of the other e-mails from an unidentified woman to the retailer from which it was an increase in recent months products recovered were registered that contained credit card information, stolen. Finding the rightful owner of credit card chargebacks with the retail point of sale database, and a money gram receipt of a is a tremendously gratifying feeling. linked to suspected investigators were able to quickly purchase made from an individual in Technology has certainly served the fd illegal credit card determine where and when the Russia. criminal element well, often times transactions. Additionally, computer had been purchased, thus giving them the upper hand. But it is there were video images establishing the original ownership While discovering all the information also providing law enforcement with of two suspects. Shortly and the item’s transaction history. on the computer was important in the tools to fight these crimes and put after being alerted , one The detectives were then able to developing the case, SIRAS P.I. was the perpetrators behind bars. RLM of the Assets Protection contact the retailer for the transaction fundamental in helping to tie the team members happened to payment detail, which revealed that entire case together, leading to the Detective Sean recognize one of the suspects the computer had been purchased conviction of all six Richmond girls. Smith is a Sacramento, on video surveillance with one of the fraudulent credit The database enabled the link to California Sheriff’s cameras attempting to buy a cards. The investigators also tracked these products directlyto the retailer. Detective assigned large number of gift cards. several other products found in the Linking the product to the retailer to the Sacramento The suspect was detained storage facility against the serial resulted in the fraudulent tender and Valley Hi-Tech by store security personnel, number database, helping identify the other additional evidence, making the Crimes Task and the police were called. retailers from which they had been case very solid. Force. This task force, commanded by Sacramento Sheriff’s Captain Upon arriving, the police fraudulently purchased and enabling Jim Cooper, comprises more than 40 found the second suspect action with other retailers. different law enforcement agencies in waiting in a car. the Sacramento region. While building the case against the two female suspects, two more womenSIRAS is the pioneer in retail point case now known as “The Richmond were apprehended in aof sale electronic product registration, Girls.” The group was made up of six similar manner at another mass-and the database contains hundreds women in the Richmond, California market retailer. And, in the course of A L T E R N A T I V E T H I N K I N G A B O U T P R O D U C T F U L F I L L M E N T:of millions of product serial number area who were buying credit card the expanding investigation a storagetransaction records that were numbers of U.S. citizens that had facility was discovered, rented by one Connect People, Not Just Systems.developed through the company’s been stolen and then made available of the suspects. Inside, more than Alternative thinking is looking at the entire product, sales, and service ecosystemongoing partnerships with retailers through websites in Russia, as well as $80,000 in merchandise was found, to drive change and achieve critical outcomes. Such as greater efficiency, lowerand manufacturers. While this other sources. The women would then including a computer. costs and improved service.database company doesn’t collect re-encode other stolen credit cardsany consumer information at all, with these fraudulent numbers and It’s turning data into the knowledge that links customers with what they need and SIRAS P.I. Helps Establish Ownershipthe information it provides in its use them to purchase retail gift cards you with a more holistic view of what they want next. One of the most difficult aspects indetailed product transaction records and other merchandise from “big box” building a prosecutable case in this It’s finding new ways to manage both forward and reverse logistics with fulfillmenthas proven instrumental in linking stores along the I-80 corridor between type of crime is determining the services that enhance your customers’ experience.products, indisputably, to specific Sacramento and San Francisco. ownership, or the transaction historycrimes, and helping apprehend and It’s working with HP’s world-class supply chain organization where you’ll find of any recovered merchandise. If noconvict criminals. Buying retailer gift cards is a common innovative ideas that will help you reach your goals to reduce freight and labor owner can be established, it’s difficult costs while lowering returns and improving sales. practice in the world of organized to prove that a crime has occurred,California’s Sacramento Detective retail crime: This plastic money can which then makes the case almostTask Force first learned about this easily be re-sold at a steep discount impossible to prosecute.tracking database in late 2007, when through Internet auction sites, at fleathe task force was investigating a markets, and a variety of other places. Technology for better business outcomes. Reverse Logistics Magazine • Edition 22 ©2010 Hewlett-Packard Development Company, L.P.
  • 13. REVERSE LOGISTICS ASSOCIATION CONFERENCE & EXPO 7th Annual RLA Conference & Expo Hotel Okura Amsterdam The Hotel Okura Amsterdam is a five-star, luxury hotel located on the banks of the Amstel Canal, close to the financial, cultural, and entertainment district of Amsterdam. Hotel Okura Amsterdam received the Green Key for meeting the strict demands that this international June 14th-15th, 2010 sustainability label maintains for the hotel/conference category. The Green Key is the most important international sustainability label for companies in the tourism and leisure industry. 6/13 RLA Reception for Exhibitors, Sponsors and Speakers - Exhibit Hall - 6:00pm - 7:30pm 6/14 EXHIBIT HALL OPENS - 8:30am WELCOMING REMARKS - Gailen Vick, President, RLA - 10:30am KEY NOTE ADDRESS - Jack Allen, Director of Supply Chain Operations, Cisco - 11:00am BUFFET LUNCH - EXHIBIT HALL - 12:00pm - 1:30pm Keynote Speaker Join us for the Seventh Annual RLA Conference & Expo in Track A Track B Track C Track D EMEA. Companies from throughout Europe as well as many other international delegates will be in attendance. ODMs Thomas Mueller - Director, Bryan Maguire - Regional Eduard Falkenreck - Direc- Reverse and OEMs will be looking for 3PSPs that can manage Reverse Care Supply Chain VP for EMEA, Jabil tor Business Development, 1:30pm Logistics Management, Nokia Arvato Services Logistics in Europe, along with identifying solutions for Asia RL Shared Costs Between Capabilities of an SAP IT Issues in the Optimal Spare Parts and the Americas. Wireless Carriers and which has been Designed Data Storage Management Manufacturers for the RL Environment Industry Monday morning sessions start with the Welcome Address Jack Allen by Gailen Vick, President of RLA. Speaker sessions will Tony Sciarrotta - Director, Harold Krikke - RLA Asset Recovery, Philips Christian Christensen - Vice Professor of Closed Loop Director of Supply commence after lunch and continue throughout the day and President, Elcoteq 2:30pm Consumer Lifestyle SCs Chain Operations also on Tuesday Post-conference workshops will be held on Dianne Hofenk - MSc Thinking Forward in Panel Discussion: Challenges in Global AMS Returns Wednesday, June 16. New Ways to Streamline Business Operations, Drive Profits, Global Survey on Reverse and Delight Customers Logistics: Survey Results INTERMISSION - REFRESHMENTS - EXHIBIT HALL - 3:30pm - 4:00pm Maarten Pruijmboom - Euripedes Gomes - LAR Jelle Schoenmaker - Sales Managing Partner, Go-to-Market Supply Chain Director, Cycleon Maximizing 4:00pm Serve2XL Manager, HP Opportunities Leveraging Superior Panel Discussion: End-to-End Product Life Performance to Earn the From Managing Methods of RL Outsourcing Cycle Management Loyalty Sustainability Risk Amsterdam Canal Dinner Cruise - 5:30pm - 8:30pm Seats are limited. Please sign-up when you register for the Conference & Expo.26 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 27
  • 14. REVERSE LOGISTICS ASSOCIATION CONFERENCE & EXPO REVERSE LOGISTICS ASSOCIATION CONFERENCE & EXPO Wireless Internet provided and supported by: 6/15 EXHIBIT HALL OPENS - 8:30am Track D Track A Track B Track C Track D Jo van Nunen Liam O’Halloran - Senior Helen Dupeux - EMEA Vice President, Dex Transport Manager, Dell Reverse Logistics - 9:00am Track A Panel Discussion: The Next Generation Efficient Returns Integrating Reverse Lo- of Support and Management gistics to Drive Out Costs Value Add Services and Reduce Cycle Times INTERMISSION - REFRESHMENTS - EXHIBIT HALL - 10:00am - 11:00am TCG PincVision Exhibit Hall Sprague Magnetics DEX Spring Global Enternace Europe Mail Cycleon A4 A5 A9 A10 A11 CRC Leslie Harms - Director of Jabil Jeroen Weers - Membership Relations Repair and Asset B13 11:00am Panel Discussion: B1 Developmental Manager RL, AsiaMTM Celestica DHL Flection UPS Servicistics Pegatron Elcoteq Challenges and Spring Global Reverse Logistics Association Recovery to C1 C4 C5 C6 C7 C8 C9 C10 Flextronics C13 Compliance with Cross Support Leased TNT Making the Most of your D1 D1 D4 D5 D9 D10 D11 D13 Border Commerce Thinking Forward in PC Buffet Arvato Reverse Logisticstics RLA Membership Benefits E1 E13 Track C Track B RLA MGH F1 F13 RL Green SCC Magazine Peas BUFFET LUNCH - EXHIBIT HALL - 12:00p - 1:30pm G1 G3 G4 G5 G6 G8 G9 G10 G11 G12 G13 Ian Rusher - SCFO EMEA Stefan Danckert - CTO, Herman Goemans - Operations Manager, Cisco pinkvision Managing Director RL Quote, 1:30pm Research and Reverse Logistics Strategy Controlled Reverse Chains Streamlining Reverse Consultants for End-of-Life Products Logistics by Design Co-op Panel Discussion: David Novak - Director Environmental International Strategic Sustainability and The Reverse Logistics Lifetime Achievement Award recognizes outstanding individuals whose 2:30pm Corporate Social Reverse Management Considering Relations Responsibility in Logistics as an pioneering spirit and demonstrated inventiveness throughout their careers has improved Sustainability and Corporate Social Harvesting Value out of Environmental Man- Asset our society and inspired others. Responsibility Defective Returns agement CLOSING REMARKS - Kurt Walker, Director of Special Events, RLA - 3:30pm is Honoring the Life of LUCKY DRAW - Leslie Harms, Director of Special Events, RLA - 4:00pm Jo van Nunen for MP3 Players, DVD RW, Portable DVD Players, External Hard Drives, Digital Cameras (you must be present during the drawing to win) 6/16 Post-Conference Workshops - 9:00am - 3:00pm INTERMISSION - 10:30am - 11:00am It is with deep regret that we notify the world of the passing of Jo van Nunen. Jo passed away the week of April 10th, 2010. Post-Conference Workshops Continue Jo van Nunen was the chairman of the Department of Decision and Information Sciences of the RSM LUNCH - 12:00p - 1:30pm Erasmus University.The program leader of the research program on logistics and information systems, which is a joint program with the Technical University Delft and Erasmus University Rotterdam also, having been the scientific director of a national research program on “Transition to Sustainable Advisory Board Meeting - 4:00pm - 5:00pm Mobility” and of the Academic Centre for Transport. His research focuses on close loop supply chains and ICT applications in logistics. Many of the research projects he was involved with are co-operations RLA Industry/Focus Committee Reports - 5:00pm - 6:00pm with private companies and governmental organizations. As can be expected logistic organizations in the Port of Rotterdam are an important source of inspiration for this research.28 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 29
  • 15. ARTICLE TCG PincVision Exhibit Hall Sprague Magnetics DEX Spring Global Enternace Europe Mail Cycleon A4 A5 A9 A10 A11 CRC Jabil B1 B13 AsiaMTM Celestica DHL Flection UPS Servicistics Pegatron Elcoteq C1 C4 C5 C6 C7 C8 C9 C10 Flextronics C13 TNT D1 D1 D4 D5 D9 D10 D11 D13 Buffet Arvato E1 E13 RLA MGH F1 F13 RL Green SCC Magazine Peas G1 G3 G4 G5 G6 G8 G9 G10 G11 G12 G13 Amsterdam Canal Dinner Cruise Bad Economy May Not Be So Bad for Third Party Service Providers by Michael R. Blumberg Over the last few months there on an elaborate and proprietary audits, benchmarks, etc.) conducted has been much uncertainty and econometric model developed by by Blumberg Advisory Group on the speculation about the future of the Blumberg Advisory Group which relationship of reverse logistics spend world economy. Most people want to takes into account bottoms-up and as a function of forward logistics, know how the current economic state top-down market sizing and forecast product sales, GDP, and installed base of affairs will affect the business they techniques. More specifically, the characteristics. The model is sensitive are in and their personal fortunes. model involves an empirical analysis to changes in GDP but not dependent The Reverse Logistics & Aftermarket of secondary data sources with respect on it. Service Industry is not immune to to historical & forecasted GDP (i.e., this situation. Fortunately, our firm U.S. Department of Commerce, Our most recent assessment was Sponsored by: conducts an annual assessment of International Monetary Fund), completed the beginning of this year the size and forecasted growth rate Forward Logistics Expenditures (e.g., (2009). It examines historical and of key market segments within the Council of Supply Chain Management forecasted data on the size of the Reverse Logistics & Aftermarket Professionals, Donald Bowersox, Gap market for the years 2008 to 2012 Service Industry. This information Gemini, etc.), product shipments and within the High Tech & Consumer provides our clients with critical installed based characteristics (e.g., Electronics Industry. Our analysis The Monday evening Amsterdam Canal Cruise Sponsored by DHL & Spring will provided attendees input for developing market plans Frost & Sullivan, CEA, TIA, Research shows a Worldwide Market of a chance to see some of Amsterdam plus the opportunity to meet with potential customers. and evaluating alternative business & Markets, etc.) and on-going primary US $677 Billion in 2008. Service scenarios. Our assessment is based research (i.e., surveys, observations,30 Reverse Logistics Magazine • Edition 17 Edition 22 • Reverse Logistics Magazine 31
  • 16. or 3rd Party Reverse Logistics8th Annual RLA Conference and Expo Las Vegas 2011 (3PRL) Services is quite bullish. It ROW is expected to grow by a Combined America’s Premiere Reverse Logistics Event North America Annual Growth Rate (GAGR) of 9% 10% between the years 2008 and February 7-9, 2011 LAC 20% 2012 (figure 2). In fact, the 3PRL 8% segment will grow at the expense of the captive or in-house segment as OEMs continue to outsource and/ or out-task critical RL activities and functions as a strategy to reduce cost and improve efficiency in light of no- growth market conditions. Asia Pacific 25% Europe The above macro-economic analysis is consistent with micro-economic 38% data that we have been observing from many individual companies to date. As such, our forecast methodology is consistent with actual segments covered in this analysis Billion) of the world market (figure industry performance. Despite highly include depot repair, warranty & 1). publicized bankruptcies, lay-offs, and Over 150 Exhibitors and Sponsors – returns management, liquidation, While the overall RL market may downsizing strategies among OEMs eWaste, and service parts logistics. appear to be operating in the dull 1,500 RL Professionals Representing The US represents 20% (US $132 drums, the outlook for outsourced and Retailers, we have observed that 700 Companies Industry Events Make plans now to join us for the 8th Annual Reverse Logistics Conference and Expo on February 7-9, 2011 at the Rio Hotel and Casino. Monday offers pre-conference workshops and the conference industry reports. Tuesday is the keynote address, followed by over 150 sessions presented by RL professionals and leading academics. The Expo where 3PSPs will showcase their RL services and solutions to OEMs and Retailers Paper Recycling RLA Seminar – E-Scrap 2010: The North American Conference – Chicago Salt Lake City Electronics Recycling June 13-15, 2010 July 8th, 2010 Conference – New Orleans www.paperrecyclingconference. September 29-30, 2010 com event.php RLA Conference & Expo – RLA Conference & Expo – CSR, Corporate Giving & Brand Amsterdam Singapore Protection Summit – Las Vegas June 14-16, 2010 September 27-29, 2010 November 3-5, 2010 php phpIf you are a Reverse Logistics professional – don’t miss this event!32 Reverse Logistics Magazine • Edition 17 Edition 22 • Reverse Logistics Magazine 33
  • 17. Market for Outsourced/3rd Party Reverse Logistics Services Closing or Moving out of a Reverse Logistics facility? At this very moment, RL companies are looking for facilities with infrastructure already installed. Let us help take the costly hassle out of having to restore your facility to its original state. Looking to Expand or Relocate? Let us help locate facilities with the RL structure already in place. Save the hassle and resources and find it now! Third Party Service Providers (3PSPs) sales cycles are taking longer and of market requirements, and the continue to win new business in this there is increased cost pressure of availability of bundled, value-added current economic climate. However, 3PSPs. The fact of the matter is that service programs will be just a fewThe above macro-economic analysis isinto the market still of the critical keys to success in this products sold consistent with micro-economic data that require Reverse Logistics & market over the next 2 to 3 years.we have been observing from many individual ifcompanies to date. As such, our Aftermarket Support even sales RLM orecast methodology is consistent with actual industry performance. Despite decline and financial performance Michael R.highly publicized bankruptcies, lay-offs, and downsizing strategies among is requires the OEM/Retailer to cut Blumberg OEMsand Retailers, we have observedThird Party outsourcing Service Providers (3PSPs) back. that Third Party a Certified provides OEMs and Retailers with a Managementcontinue to win new business in this current economic climate. However, sales low cost option which may even be Consultant (CMC)cycles are taking longer and there is increased cost pressure of and PresidentThe fact more efficient and higher quality then 3PSPs. & their own organization.of the matter is that products sold into the market still require Reverse Blumberg CEO of Logistics & Advisory Group, Given the market outlook, OEMs and Inc. His firm focuses on providing Retailers are advised to aggressively strategic and tactical assistance toAftermarket Support even if sales decline to reduce cost client organizations for requires the find opportunities and financial performance improving The entire process is secure.OEM/Retailer to cut back. Third Party outsourcing provides profitability and quality of and improve the quality and the overall OEMs and Retailers All inquiries are kept confidential. efficiency of RL operations vis-à- aftermarket service operations. Mr.with a low cost option which may even beoutsourcingefficient and higher quality then vis business process more and Blumberg has established himself as heir own organization. subcontracting relationships. For 3rd an expert and industry authority on Party Reverse Logistics Providers Reverse Logistics and Closed Loop Supply Chain Management. Mr.Given the market outlook, OEMs and Retailersbecome advised toserves as a Chairman find the market is expected to are Blumberg also aggressively intensively competitive as providersopportunities to reduce cost and improve the qualityReverse Logistics Association’s RL vie for greater share of OEM/Retailer of the and efficiency of RL dollars. The establishment of a Medical/Pharmaceuticaloperations vis-à-vis business process outsourcing and subcontracting Focus strong value proposition, knowledge Committeeelationships. For 3rd Party Reverse Logistics Providers the market is expectedo become intensively competitive as providers vie for greater share of
  • 18. Read the Press Reverse Logistics AssociationGlobal Reverse Logistics SurveyThe Reverse Logistics Association forward stocking locations in Brazil, a Distribution Center, tri-lingual lutions Convert Business Risk to Peace of Mind Focus Committeesand Open University Netherlands/ Command Center, and capabilities as Joensuu, Finland—26 April 2010— FOCUS COMMITTEES • John Weatherup, Tech Ed Networks • Rike Sandlin, IntechraRotterdam School of Management are a legal entity for import and export Blancco, the global leader in data era- • John Wild, Flash Logistics • Jake Player, TechTurn Corporate Social Responsibility • Jesus Sales, Juniper Networks • Isaac Mitchell, Eagle Electronicabout to start a Global Reverse Logis- of parts and products. Flash systems sure and end-of-lifecycle solutions, Chairperson - Brian F. Eddy, SubCon • Edward Higgins, MasterWorks Resourcetics survey. This survey is conducted are electronic nota fiscal compliant to today announced that Sims Recycling Industries International • Curtis Greve, Metreks, Inc.on five continents across different allow for filing within the Brazilian Solutions ensures assets are data safe • Larry Maye, Precision Camera & • John Baehr, KLA-Tencor Corporation • Gary Cullen, 4PRL Video • Alan Wheatley, MasterWorksindustries and concerning different fiscal system. before they are recycled or refur- • Chris Fabian, Professional Services International REGIONAL FOCUStypes of returns. It will be held in three bished by embedding Blancco’s data Solutions • Derek Scott, Canon Europa Please watch your email in the center/media_press.php erasure software into its proprietary • Dr. Lutz-Guenther Scheidt, PE- • Michael Bisk, Prelco Electronics APAC International GmbH • Andy Chuang, ZyXEL • Kenichi Kato - KatoTecnext couple of days for the link to the online system, WebView. • Harold Krikke, Open university Communications Corp • Colin Kempter – ECN groupsurvey. You are cordially invited to Glenville electronics recycler pur- • Jesse LaRose, ESE Solutions • Herman Goemans, Sprague • Brian Noone – INFINET Serviceparticipate in our global RL survey. chased by NH metal refiner leases/blancco-helps-sims-recycling- Magnetics Europe Solutions Information Technology Solutions • Mike Joy, Tech-Ed Networks • Peter Chung - ChungcoAs a reward you will receive a sum- Schenectady-27 April 2010-Colt Re- solutions-convert-business-risk-to- Chairperson - Leonard Schneeman, • David Liscom, Hyper Microsystemsmary of results, providing a reverse fining Inc., a New Hampshire-based peace-of-mind-92069354.html DEX • Kok Huan Tan, Dell Global Brazillogistics benchmark of your company. company that salvages precious and Co-Chairperson and Standards • Doug Houle, DHL RLA Advisors - Dal Walker Committee Liaison - Paul Rupnow, • Jeff McMichael, UPS • Vlademir Gatti, Pandisc Informationhttp://www.reverselogisticstrends. non-ferrous metals from recycled Electronic waste - Extended pro- Andlor Logistics • Eric Smith, GENCO • Pedro Mauricio, Keylabcom/shownews.php?id=7727 electronics, has purchased Waste ducer responsibility in Canada Forward Logistics Sub-Committee • M. Brian Carter, SAP Labs, LLC Management and Recycling Products 26 April 2010-The increasing use of IT and Business Trends - Lee Sacco • Janet O’Neal, Dell Inc. China Chapter Sub-Committee Chairperson, Oracle • Joe Walden, University of Kansas Chairperson - Haozhe Chen, Ph.D.,Flash Global Logistics Continues of Glenville, according to an official electronic products by consumers Committee Members: East Carolina UniversityBrazil Expansion press release. Terms of the purchase and businesses today and their high • Tom Johnson, Cisco Standards Committee Members:Pine Brook, NJ—14 April 2010— will not be disclosed. turnover rate, in response to demands • John Rinehart, Intel Chairperson - Dr. Ron Tibben-Lembke, • Andrew C. Katcher, Rapid Results, • Sivakumar Sethuraman, Amazon. UNR Inc.Flash Global Logistics, leader in for new technology, has led to an ex- com RLA Advisor/Secretary - Gailen Vick, • Meiping Liu, Bostar Consulting Ltd.,single source innovative supply chain glenville-electronics-recycler-pur- plosion of electronic waste in Canada. • Herman Goemans, Sprague Committee Members: Chinasolutions for mission critical parts Magnetics Europe • Dr. Dale Rogers, University of • Jim Long, Ph.D., Ensemble Global chased-by-nh-metal-refiner/19509/ This waste stream has received a lot Nevada, Reno • Glenn Norem, eeParts • Pat Anderson, TAKEand products, announces growth of of attention around the world due to • Lee Sacco, Oracle • Holly Elwood, U.S. EPA • Yu Tian, Ph.D., Sun Yat-Senits Brazil Operations to include 26 Blancco Helps Sims Recycling So- the impact of electronic waste on the • Brian Carter, SAP • Larry Maye University • Haozhe Chen Ph.D., East Carolina • Paul Rupnow, Andlor Logistics • Matthew A. Waller, Ph.D., University environment and human health. Like University Systems of Arkansas the European Union (and other Euro- • Norm Plummer, Bigston • Norman McEachron, Consultant • Yuan Xu, China Marketing pean countries), US, Japan, South Ko- • Andy Chuang, ZyXEL • Larry Chalfan, Zero Waste Alliance Association Communications Corp • Bill Guns, SRI Consulting • Daniel Pengfeng Xue, Sprint rea, and a number of other countries, • Edward J. Higgins, MasterWorks • Clare Lindsay, U.S. EPA • Kok Huan Tan, Dell Global Canada has implemented its own pro- International • Ken Purfey, AICPA • Rajesh Kumar Goel, RT Outsourcing grams for managing electronic waste. • John McGurk, GlobalWare Solutions • Emily Rodriguez, The Results Group Services • Sivakumar Sethuraman, Amazon. • Paul Relis, CR&R Waste & Recycling Com Services EMEA aspx?aid=1000368934 • Herman Goemans, Sprague • Anthony Schell, ValuLink, LLC • Ian Rusher, Cisco Magnetics Europe • Ishak Kang, Vox UI, LLC • Dr. Lutz-Guenther Scheidt, PE- • Ian Rusher, Cisco • Jeff Redford, Service Logistics, LLC International GmbH Making Reverse Logistics Green • Mike Joy, Tech-Ed Networks • Sivakumar Sethuraman, Amazon. • Andy Chuang, ZyXEL and Profitable • Marjorie Holleran, Oracle com Communications Corp 26 April 2010-Italian researchers have • Doug Houle, DHL • Jeff Pergament, Kepner-Tregoe, Inc • Dr. Lutz-Guenther Scheidt, PE- integrated repair, developed a logistics model that could • Sheryl Skifstad, Motorola • Janet O’Neal, Dell Inc. International GmbH • Dave Treat, Teleplan International • Joe Walden, University of Kansas • Herman Goemans, Sprague warranty and allow old equipment from refrigera- • Bert Munnikhuis, GENCO Magnetics Europe tors to mobile phones to be recycled • Jeffrey Reed, Ozark Sustainability and Environmental • Vibhore Arora, Infosys logistics • M. Brian Carter, SAP Labs, LLC Management more efficiently under product take- Chairperson: Jade Lee, Supply-Chain India Chapter back regulations. They outline their Spare Parts Management Services, Inc. Chairperson - Sanjeev Kakar, RT Jabil Aftermarket Services is a world-class approach in the International Journal Chairperson - Roy J. Steele, RoShar Co-Chair: MaryEllen Daniels, ITRAN Outsourcing Service Limited Associates LLC Electronic Recycling Committee Members: provider of end-to-end reverse supply of Logistics Systems and Manage- Founding/Past Chair (2007-2008) Committee Members: • DK Sareenn, Electronics & Computer ment. Michael Shelor, Shelor, Consulting Inc. • Dr. Lutz-Guenther Scheidt, PE- SW Export Promotion Council chain solutions to some of the world’s Committee Members: International GmbH • John Mehrmann, ZSL, Inc. • Oliver Lemanski, MGH Consulting • Tim Andreae, MCA Solutions • Fiona Kelday, Canon Europe Ltd leading OEMs and ODMs. Visit us online or es/2010/04/100426081246.htm • Matthew Cutone, Horizon • Jesse LaRose, ESE Solutions Ltd schedule an appointment to find out how Technology • Isaac Mitchell, Eagle Electronics • Hitendra Chaturvedi, RLC Pvt. Ltd • Shawn McFay, Dell • Bert Munnikhuis, GENCO • Ian Rusher, Cisco we can deliver real value to your business. • Mitch Williams, Superior Service • Bruce Taylor, Supply-Chain Services, • Sivakumar Sethuraman, Amazon. Solutions Inc. Com • Jürgen Donders, Gordian Logistics • Dag Adamson, LifeSpan Technology • Kok Huan Tan, Dell Global Experts Recycling • Vibhore Arora, Infosys • Sreevathsa, The Service Solutions36 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 37
  • 19. FEATURE ARTICLE VP Marketing VP Sales VP Supply VP Operations Corporate Giving Green Initiatives Remarketing Customer 3PL/3PSP Sustainability Service Outsourcing CSR Directing Reverse Logistics – Packaging Returns Disposition Management Recycling A Corporate Paradigm Shift Recalls Reclamation by Kurt Walker & sustainability manager, CSR, from a company incurring federal strategy to bring seemingly disparate corporate giving, green initiatives, environmental penalties resulting functions together within their model. disposition management, recall from improper disposal, or angry There have been many studies that competing for resources. Bringing to capture an additional 5% profit to managers, packaging, remarketing, and lost customers because of Consider if all the different parts of the have attempted to size the reverse those functions together is the purpose their bottom line. This figure is the 3PL/3PSP outsourcing…you get RL machine are actually reporting and logistics market in the world today. of this paper - to explore the benefit of reality now of properly coordinated the idea: myriad people functioning coordinating under the more rational One of the main struggles of such a new executive level position over and executed RL models. separately - usually reporting to singular umbrella of an executive an effort is that there is no real reverse logistics. different VPs within the company, over everything RL - imagine the consensus on the definition of reverse and doubtless with much overlapping The problem is that companies efficiencies that could be captured, logistics, thus there is constant of responsibilities, redundancy, and In an economic climate where simply refuse to execute on the fact the streamlining that could occur if discussion about which functions that confusion. A model of this situation companies are using words that better RL management can be as all these pieces which feature RL a company engages in actually fall might look something like this: like “strategic value,” “profit important, or possibly (depending on functions are coordinated by reporting under the RL label. A company may to a single EVP of Reverse Logistics. maximization” & “environmental case) more important to the profits of have an executive VP of returns, but Unfortunately, too often it’s only This executive could then coordinate profitability” with their shareholders, a venture as is solid design, marketing potentially neglect recycling or re- after some significant failure that a with other executives across the ignoring the RL issue by consistently or flawless to-market execution. One use issues on that same level. There company sees the problem of such corporation. (See Figure 2) placing it subordinate to planning, major flaw in the RL model is that unsatisfactory failure remediation, to are many people within a company an incongruent structure and finally forward-logistics, and marketing there are so many competing voices a public campaign for sustainability engaging in what are considered RL considers the value of a functioning functions seems to defy reason. I within the RL space – Director of countered by a lack of execution An executive management structure functions, but they’re not coordinating RL model within their enterprise. doubt there would be a company today customer service, Director of returns, of green initiatives. It’s time that that does not give voice to the reverse efforts or resources, or worse they are There are many examples of this, who would not jump at the chance reclamation manager, recycling companies think about a cohesive logistics viewpoint when considering 38 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 39
  • 20. Technology Spotlight EVP Reverse Logistics CSR McAfee apologizes for crippling PCs with restore a crippled computer. SuperDAT can A slew of websites have sprouted up in bad update be downloaded using a link on this support recent months to take the work out of Computerworld - McAfee Inc. apologized document. organizing a group buy and typically offer Remarketing Green Initiatives late Thursday for crippling thousands of h t t p : / / w w w. c o m p u t e r w o r l d . c o m / s / deals of around 50 per cent off purchases — customers’ computers with a flawed update article/9175940/McAfee_apologizes_for_ provided that a specified number of users the day before. crippling_PCs_with_bad_update agree to buy. Packaging Corporate Giving Simoes said group buys are a no brainer — Reports, confirmed and anecdotal, put the Consumers finding bulk deals online number of affected PCs in the thousands, the if you can get them to work. Fiyaz Keshwani has always been one to majority of them business machines. Only barter and is never happy paying full price Customer Recycling systems running Windows XP Service Pack when shopping. So when he found out he “There’s a lot of merit behind a group buy,” Sustainability 3 (SP3) were clobbered by the bad update, could get movie tickets at almost half off he said. Service but it’s the newest version and Gartner Inc. Returns analyst John Pescatore estimates that it has a by jumping through a few hoops, he figured it’d be worth a little hassle for a great deal. 50% share of the enterprise market. “If you can get six or seven guys buying 3PL/3PSP tires and you can save $150 or $200, why Recalls Outsourcing Computers crippled by the update crashed The 27-year-old from Edmonton turned to not get a much better deal?” the Internet, collected money from dozens and rebooted repeatedly and lost their of fellow movie fans online and arranged to network connections -- a symptom that buy 1,500 tickets directly through Cineplex Disposition forced support technicians to work on Odeon at wholesale prices. technology/personal-tech/consumers- Reclamation downed PCs individually, thus dragging out finding-bulk-deals-online/article1542142/ Management the time required to resuscitate machines. Companies like Costco and Sam’s Club have long been known for leveraging the power Early Thursday, McAfee made available a of bulk buying to get lower prices. Now, semi-automated tool, dubbed “SuperDAT consumers are turning to the Internet to find Remediation Tool,” that’s designed to better deals by buying in big numbers.product development or marketing RL to the balance of executive I hope that organizations willstrategies surely opens the company management. follow the lead of a few pioneeringto future pitfalls. If a company has companies who have identifiedinvolved reverse logistics as a whole reverse logistics as more than what Because there are so many disparatefrom the beginning of forward supply amounts to disaster remediation, voices involved in the differentchain issues, with cohesive reporting and see it as a way to improve cost areas of RL today, a wise enterpriseand coordinated execution, there will savings, customer satisfaction, would create an umbrella positionbe significant bottom-line impact. profitability, environmental viability, on the executive level to coordinateThis only works if the involved RL and ultimately competitive advantage efforts of the different facets of RLexecutive has within his reports and profits. With so much at stake and interface with CEO, CTO, CFO,all areas of a company’s customer in business today, I imagine this will & CMO positions to address reverseservice, service logistics, after-market become less the fanciful thoughts of issues from the beginning of thesupply chain, sustainability initiatives a myopic RL professional, and more product cycle – the planning stages.& CSR departments. a standard requirement of business success. One executive I spoke with at a recent RLMI think RL has grown and strategically conference who works at a prominentprogressed to the point that many cell phone OEM has done just this.successful companies have identified Kurt Walker spent He has advocated RL to the point oftheir reverse logistics approach as being on the VP level, and having a 15 years workinga strategic variable with significant voice with all other executives in in manufacturing,profit opportunity, on par with their product & market execution planning packaging, andproduct development, engineering, - even to the point of having vetoor marketing strategy. The fact that customer service. He power if he identifies a serious RLcompanies are identifying reverse is currently Special pitfall in the process. This companylogistics as part of their competitive Events Director for the Reverse is now preempting risk simply byadvantage now bears out the need for Logistics Association. correctly involving RL in theirthere to be an executive level position planning, through essentially C-levelcoordinating the efforts of all facets participation of an RL executive.of RL, while effectively representing40 Reverse Logistics Magazine • Edition 22
  • 21. ARTICLE Avoiding the Pitfalls of International Returns by Tom Stanton US Classifications are made up of ten the foreign shipper required for goods was claimed, the duty paid back by Part digits. The first six include the chapter valued over $10,000. the U.S. government must be repaid 3 (first two), heading (first four) and for goods permanently returning to subheading (first six). The remaining the U.S. A duty drawback refund is Duty Dr awbac k-A mer ican numbers allow for statistical separation only applicable to goods remaining in Manufac ture d Goo ds of products so that U.S. manufacturers a foreign country. If the duty amount and other interested parties can Some manufacturers export goods, per unit is small, it may be the least cost differentiate between products in detail. which were manufactured from to repay the duty drawback amount. Duty rates are assigned to products imported materials. These goods Alternatively, a temporary import entry usually at the six digit level. would normally qualify as U.S. can be made, which will be discussed Customs and Border Protection has Part 2 S ummary: C ountry of originated returns due to the amount of been around for a long time. Their later in this article. This is the third in a series of Origin and C lassification: work done in the U.S.. However, the mission is to protect the United States Part 3 R eturns : P ractical exporter may have claimed duty back articles on international returns. In from prohibited imports and exports ch allenges on importation on the exported product by identifying Fore ign Goo ds R eturne d the first article, the topic discussed In last month’s article details were and protect the commerce of the United of your returned products. the imported materials and the duties If the goods being returned are not of was the problem of not preparing presented on country of origin and States from unfair competition from paid. This is called manufacturing U.S. origin, there are several options for potential returns of previously classification of merchandise. The foreign countries. Customs manages drawback. If manufacturing drawback one might use to deal with the situation. exported merchandise. And the country of origin of merchandise is Amer ica n Goo ds R eturne d imports through the work of Customs second article focused on country important because trade agreements When goods are returned to the U.S., inspectors and import specialists. are made to treat the goods of our they are either U.S. originated goods of origin and classification. The The inspectors are on the front lines trading partners differently. For some or foreign goods. U.S. goods returned following is a short summary of reviewing information about shipments countries with very low standards of have their own classification as U.S. the information provided in the and the import specialists work in the living we allow their goods duty free goods, and can clear Customs duty free. first two articles. background setting inspection criteria entry into the U.S., and for others, In essence, the classification states that and reviewing the documentation after minimal duties. Countries who are the goods being returned that were provisional release of the merchandise not our trading partners, such as Cuba imported from the U.S. and have not under Customs bond. Customs brokers, and North Korea, duties are applied been “advanced in value or improved who contract with Customs to help the Part 1 S ummary: C ustoms in the 50% to 90% range, or embargo in condition” are still considered public understand and comply with and Customs brokers : importations completely In some Americangoods. When making a U.S. Custom laws, must pass a test on the cases, goods are imported that are the goods declaration, one should have Customs laws of the United States. This product of two countries, such as items either a bill of materials, or a letter from When returns happen without any includes detailed studies on the country made from wood grown in Thailand the manufacturer, on file to support the preparation there are extra costs and of origin and classification of imported then processed in China into walking claim these are U.S. originated products. potential penalties involved. As merchandise. sticks. China becomes the country of The piece should be marked Made in explained in the first article, U.S. origin of the finished item provided. USA as well. There is a declaration by 42 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 43
  • 22. SURVEYThe U.S. tariff schedules specify that for those reasons. Goods of a foreign or goods which were claimed on dutyforeign originated goods are dutiable origin can also be imported temporarily drawback, one should work throughupon return to the United States unless by making entry into a foreign trade the options ahead of time on what typethey are exempt by some other provision zone, or a bonded warehouse. All of entry one will be making. The listof the law. three of these options require import provided here is not a complete list of and export entry documentation, and the options or exceptions applicable, are therefore more expensive than a but the common ones are included.Reje c ted Mer chan dise standard import entry. RLMU.S. law allows for free reentry ofrejected foreign merchandise on a duty Tom Stanton is afree basis, provided that the importer T emp o ra ry E x p o rt s Certified Customswas the original importer within three There is one further provision that Specialist and licensedyears of the previous importation, and allows foreign goods exported for trade Customs broker withthe goods were rejected because they shows that are open to the public, or for the National Customsdid not meet sample or specification scientific purposes, to reenter the United Declining volumes and tough familiar with re-manufacturing. But data is available on reverse logistics.The Brokers and Forwarders competition force companies to seek also in other high-tech business we Reverse Logistics Association and Openof the country of origin. If the goods States duty free. One useful method Association. Tom new sources of income. Few however find more and more examples of it. University Netherlands are thereforewere returned as part of an exchange along this line is a Carnet, which is a keeps up-to-date each year with consider reverse logistics as a strategic Manufacturing and re-manufacturing conducting this survey. The goals of theor upgrade program they would not Customs bond that allows duty free new regulations and compliance option. The explanation is that reverse are an integrated process, in which survey are:qualify for duty free entry under this entry of merchandise into foreign requirements, such as 10+2 import logistics a complex process that crosses reverse logistics acts as a supplier forexemption. The complete details of this countries and back into the United requirements, that go into effect January different departments. But the field is the production department. Recoveredprogram are specified in 19 CFR 10.8a. States if both countries are signatory to 2010. Tom is also an ex-international • to benchmark and compare gaining momentum. Best in class cases components and modules are put back volumes and reasons of return for the program. traffic manager and an international show that recovery generates value. on the market ‘as good as new’. Also different types of returns across small package consultant with more There a different kinds of value that can the service department uses recoveredTe mporary I mport s different industries. than thirty years experience. He can be created from returns. spares instead of new ones. EconomicsIf one has foreign goods imported for C o n c l usi o n savings are huge. • to identify how returns are handled Corporate ~ HET LV Meeting By Harrahs Entertainment be reached by41948.1 email at tom.stanton@ O.T. 1further manufacturing, or upgrade, one If one’s importation is American goods 4C or by phone at 503-246- and how to add value. 7x4.75 none --- 100 PDF X1a Environmental Valuemay qualify for temporary entry of 01/14/10 returned for repair, or upgrade, and one 3521. In addition, Tom is known as • to identify which RL services are 01/13/10 As part of corporate social responsibility, I nformation value needed now and in the future bygoods, that areintended to be repaired, can prove the origin is U.S., there should the “Transportation Doctor” and has Reverse Logistics Magazine Robin proper returns handling helps to create Returns are the mirror of the forwardaltered or processed. Perhaps the goods not be a problem with entry into the U.S customers, i.e. OEMs and retailers. goodwill, and protect the environment. supply chain. Mistakes in sales actions,are being imported for a trade show, or a in terms of duty charges. However, several videos available on YouTube. • to identify which RL services are Also good returns management design failures or wrong incentive offered by 3PSPs now and whichscientific purpose, and could be exempt if one has foreign originated goods, helps to comply with regulations on schemes become visible through new services are being developed warranty and especially EU directives reverse logistics. For example: did you for the future. on producer responsibility (e.g. WEEE ever analyze which retail channels have directive). the highest return rates? Why are so • to analyze gaps between customers many commercial returns non-defects? demand (OEM/retailers) and services (to be) offered; hence new Last but not least, customers are market opportunities for 3PSPs. increasingly asking for footprints. A Manufacturers and retailers make neglected aspect of reuse and recycling every effort to bring their products MEETING NEEDS. EXCEEDING EXPECTATIONS. is that it reduces CO2 emissions efficiently to the market, but so far they This survey consists of two (compared to ‘new-production ‘), next spent little time to returned goods. questionnaires; one from the customer Call us to book your next meeting or event. perspective (OEM/retail) and one from 877-MEET-702 • • to the obvious materials savings. Outsourcing in reverse logistics is high on the agenda. Research of RLA and the 3PSP perspective. The questions MGH Consulting shows that the market are similar to enable comparison. The C ustomer value potential is enormous. For third party results enable us to provide state-of- Customers increasingly expect proper service providers who invest in this the art information on returns volumes, returns policies as a part of a total area there are opportunities to grab. returns causes and processes and RL Las Vegas Meetings by Harrah’s Entertainment is pleased to welcome the service. This concerns the end-of-life returns under producer responsibility Service providers must ask themselves services. By taking this survey you make a significant contribution to the body what role they (should) have in the Reverse Logistics Association™ Conference & Expo in 2010, 2011 and 2012! but also consumer and warranty return channel in order to add value of knowledge. As a reward we offer returns. Proper and fast repair in fact according to one of the four value you a benchmark of your company and creates customer loyalty. Out-of-pocket perspectives mentioned. Offer only the 3PSP market information. If you are cost for returns needs to be traded of collection service or add testing and interested in the results, please provide against the cost of loosing a customer. monitoring? Can we assist customers your e-mail address at the end of the Moreover, reverse logistics is needed to comply with regulation or optimize survey to receive a summary. In the fall for replenishment of consumables, their footprint? Do we give feed back there will be a follow up on relationships which generates revenue. to product designers and marketers? management in reverse logistics. S ourcing value New services must be developed Especially producers of printing and and existing ones reviewed and w w w. R L A s u r vey s . c o m copying devices are already very strengthened. Having said this, very little Edition 22 • Reverse Logistics Magazine 45 Must be 21 or older to gamble. Know When To Stop Before You Start.® Gambling Problem? Call 1-800-522-4700. ©2010, Harrah’s License Company, LLC.
  • 23. Feature have groups that will mentor and definitization’. My spell checker does benefit. It makes the inspection/ work with target suppliers to help you not think this is a word, but I assure you quality process much easier, your become successful. contract definitization is a very real turn time will be much faster and TECHNICAL TRENDS Then there is the term “Government Contractor” that’s’ not really the right term to use and definitely not the issue. It relates to contract sections for performance being released before other elements (usually price) are your costs will be lower. I would also strongly encourage you to not bid on any work as a sub-contractor L. Bryant Underwood place where a new business starts out. fully defined. Another new word to that you cannot cashflow for at least When we say Government contractor, learn-CAGE Code. One of the first six months. This type of work can be we typically are referring to the prime things your business must have is very slow paying at times. The last A Primmer on becoming a Government Contractor contractor. Think great big airplanes the assignment of a “Commercial thing you want is to complete some And Government Entity (CAGE) work and then be calling for payment. or Yes, I think I would like some of that and billions of dollars. What you are code. This code then updates your Not good form to communicate really targeting to become is a sub- contractor for a prime. Or even a sub of “Trading Partner Profile (TPP)”. You the strength of your company into a sub… So now that you want to be a get all of that from Central Contractor this new offering. After you win a sub-contractor, what is your product? Registration ( Before few bids and have some experience When the topic comes up that I is the stability. Having a section of started. That may sound obvious, but you logon and attempt to become a regarding your Customers’ pay cycles Well it can be anything, because there work for a Defense Contractor there your business that has stable income the point is this. Doing business with registered contractor, you will need you can adjust your cash reserves are no limits to what some section of are a suite of comments and jabs to help cover fixed costs is powerful. the government is very, very complex. some information. the US government buys somewhere. that I often hear. Then inevitably The wheels of government grind The key governing regulation we From my experience the areas of sub- This is not meant to be a definitive the conversation will turn to ‘the slowly, but they do grind and they do consult for our work, is a little US contracting where RL reader will find • Business ownership and structure/ guide, just an appetizer to get you question’. It goes something like pay. Clearly everyone requires you to publication called “The FAR” (federal the greatest traction are: incorporation started. Any web query will provide this-‘hey, I was wondering how provide value-even the government. acquisition regulation). The most would one go about doing business However, you will typically not recent copy I tested my strength to • Banking information tons of information you can use to with the government or a defense be required to face the same lift was only ~1800 pages of pure • Service and repair further your awareness and success. • Tax payer information contractor…?’. Clearly these are competitive pressures you would in non-poetic prose. Because of the Get your CAGE Code, and get started. • Cable and Harness build up • Business NAIC code and DUNS RLM tough times and everyone I know is most commercial markets. For most complex nature of doing business, • Engineering Services number looking for a way to grow into some government work the quality of the getting started on any level will help L. Bryant • Transportation, warehousing and new market. Maybe the government product is paramount-dead broke you learn the correct things to pay Underwood is logistics With that information at your side, is for you? Let me share with you companies tend to not delivery good attention to regarding success in the Director, Supply my personal take on becoming a product, on time. Most government relationships and will also help give • Metals fabrication and assembly a cup of coffee (or iced tea) and 45 Chain for Elbit contractor to the US government. opportunities will be structured in a you a suite of contacts that can mentor • Machining and Casting minutes, should get you started to Systems of America, way with price targets that will drive you. In addition the government becoming a real government sub- a leading provider • Waste processing and recycling success. Over time you will find solicits specific obligation from large contractor. of high performance Regardless of what anyone says to you can make a reliable modest and business it contracts with. These products and system the contrary it is not impossible or Next step is get you company consistent level of profit. obligations set targets for spending Last point of advice that I would give solutions focusing on the defense, crazy to want to do business in with nomenclature aligned. The with supplier partners that have you personally are two fundamental homeland security, commercial the government. There are many government culture has an entire specific socioeconomic classifications thoughts to keep in mind. Be aware aviation and medical instrumentation positive outcomes from having Some key points to consider. First language that will be baffling, at least and locations. To meet these of the power of your location. Being markets. this opportunity be a part of your to succeed in doing business with at first. For example, a key issue prime obligations most large contractors near to the prime contractor is a huge business. What most are interested in the government, it is critical to get contractors struggle with is ‘contract 46 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 47
  • 24. ADVERTISER INDEX RLA Membership APUS Celestica DHL 15 18 19 Fed Ex 3 Flextronics 2 Where can you Network with Genco Harrah’s HP 24 44 25 the World of Reverse Logistics? IntlElectronics Recycling Jabil 49 36 Motorola 51 Ozark 16 Pegatron 41 With an RLA Membership You Can: RL Facilities RLA www. 35 11 RLA Las Vegas www. 31 RLA Membership 48 • Learn Best Practices – Download Conference RLA Seminars www. 19 RLA Singapore www. 13 Presentations RLA Summit www. 21 Siras 34 • Make Valuable Connections Teleplan Back Cover • Search for new Vendors/Partners - CONFIDENTIALLY • Find New Facilities • Find New Employees/Employers • Search Worldwide Directory of 3PSP, OEM/ ODM and Retailer Companies • Become Involved with Industry Committees • Receive vouchers to attend RLA Conferences & Expos and Regional Seminars • Discounts on Exhibiting, Sponsorships, Research and Advertising To Learn how to obtain these plus additional benefits through membership call 1-801-331-8949 x40 or visit www.ReverseLogisticsAssociation.org48 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 49
  • 25. Returning ThoughtsReverse Logistics Outlook and Challenges for 2010 Your world,Despite an economically challengingyear, a lot of progress was achieved byReverse Logistics professionals in 2009to mature, understand and improveour industry. Especially noteworthy, who specialize in the resale of open box items that will result in higher value recapture. managers need to ensure their recycling efforts are meeting a myriad of rapidly changing laws and regulations around the world. your stylewere the great leaps by third party 2 . I nc r eas e Va l u e R e c ov e ry 5. R e v e rs e L ogist ics Co stReverse Logistics service providers As the market has been maturing, there Control Enjoy any song or podcast from your library. Listen to your favorite FM radio show.(3PSPs) with new and better outsourced are a lot of sophisticated partners, The recession has put downward Post pictures immediately to FacebookTM The Sony Ericsson W518a WalkmanTM .service offerings, likely prompted by a options and channel alternatives pressure on manufacturer’s margins. However, Reverse Logistics costs phone. Everything you need, anywhere you go.recessionary environment and a need to resell processed or unprocessedfor their customers, the manufacturers, are often not easy to reduce. Many returned goods. More manufacturers manufacturers are seeking opportunities sonyericsson.comto monitor costs much more closely. are realizing that a huge contributing factor in recapturing a higher value to move portions of their reverse is the ability to process and sell the logistics costs to less expensive repairSo what lies ahead for the year of 2010? returned goods quickly. More emphasis providers or regions.To find the answer to this I interviewed a on disposing of the goods locally ornumber of Reverse Logistics executives working with the local retailer who hasand have assembled the key topics that Additionally, with the volume the returned goods, can help speed the reductions resulting from the recession,recurred in many of my conversations. value recovery and increase the amountInterestingly, the focus continues to be many Reverse Logistics leaders are of cash recaptured (not to mention the having difficulty maintaining the solidon many of the key Reverse Logistics reduction in logistics costs and theissues we all know and love, but many processes and partner networks that related transportation carbon footprint). were developed prior to the recession.of these recurring issues are maturing Speed and working locally can net yourand evolving to new levels. The challenge will be to carefully company a higher profit and provide manage the infrastructure that was your CFO with a few pleasant surprises designed for pre-recession volumes, for a change. without crippling their reverse supply1. R e du ce ReturnsWhen I started in this industry over chain.ten years ago, the primary focus for 3 . G l o ba l R e ve r se L ogist icsmost returns handling departments Pr o cessi ng In the face of the challenges outlinedwas on managing warranty and defect Many manufacturers are working above, this year promises to be a strongreturns. While these defective returns hard this year to roll out their Reverse year for Reverse Logistics teams.still remain, many Reverse Logistics Logistics programs to their worldwide Senior corporate executives are reallymanagers have now also been tasked operations. These initiatives are often starting to understanding of the valuewith the important task of handling of providing significant challenges. Many opportunity available from a wellretail returns which are typically higher of the global regions are much less managed reverse logistics volume and for some industries capable in key reverse logistics areas Good technology and software islike electronics and consumer goods, such as logistics and technology. The available to process, capture data,the returned products are in valuable result is large increases in cycle time measure, monitor, and manage moreresalable condition with a NTF (No due to issues such as slower transport, effective reverse logistics processes.Trouble Found) rate that can reach 80% a need to consolidate to reduce higher And lastly as the industry matures,or 90%. transportation costs, or slower end to there are a lot of very talented reverse end processing. Other challenge factors logistics professionals available to lead, include customs, inventory overstock of manage, service or advise on significantFor 2010, retailers and manufacturers both defective and replacement items, improvements for your operations andare continuing to work together much and the need to understand or report to for our industry. 2010 is shaping up tomore cooperatively to reduce store meet local regulatory requirements. be a strong year for Reverse Logistics.returns by finding ways to improvethe customer experience, both before RLMmaking a purchase and after opening Good luck!the box at home, with a goal to reduce 4 . R e cyc l i ng a n d S u s tain ab i l i t ythe number of products returned at the Corporate initiatives for recycling Paul Rupnow - Editor ofstore level. and sustainability are leading to new www.ReverseLogistic- requirements and actions for the Reverse Logistics teams. Challenges for this year will be finding recycling Also Co-Chairman ofManufacturers are also working the RLA IT Solutionscooperatively with retailers to negotiate partners who can recover value out of product and help the manufacturers Committeean allowance in lieu of returns. This Simulated screen images. The Liquid Identity and Liquid Energy logos are trademarks or registered trademarks of Sonyreduces handling, turn around time reduce the corporate impact or footprint Ericsson Mobile Communications AB. Sony, “make.believe,” WALKMAN and the WALKMAN logo are trademarks orand logistics costs. Additionally, this of handling, logistics and separation. registered trademarks of Sony Corporation. Ericsson is a trademark or registered trademark of Telefonaktiebolagetcreates an opportunity for third parties Additionally, Reverse Logistics LM Ericsson. Facebook is a trademark or registered trademark of Facebook, Inc. © 2010 Sony Ericsson Mobile Communications (USA) Inc. All other marks contained herein are the property of their respective owners.50 Reverse Logistics Magazine • Edition 22 Edition 22 • Reverse Logistics Magazine 51
  • 26. LIFE DEPENDS MORE AND MOREON ELECTRONICSLIFECYCLE CARE IS THE HUMAN TOUCHIN AFTER-MARKET SERVICESTeleplan and its people provide hassle free lifecycle care for the leading global technology companiesin the communication, computer and consumer electronics industry. What started out as the repairof electronics developed into managing the end-to-end after-market services of our clients’ productportfolios. Often delivered in customer tailored solutions and with imbedded continuous improvement.Our people call it ‘Tele-made’; delivering high tech care with the human touch. We deal with thecomplexity, our customers experience simplicity.Want to know how lifecycle care by Teleplan can help your after-market services?Visit us at D3 at theRLA show in