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Jim Roebuck, Logistics Director at Shop Direct Group - Reverse flow in e-commerce


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Jim Roebuck, Logistics Director at Shop Direct Group spoke at the SCL Event July 2013

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Jim Roebuck, Logistics Director at Shop Direct Group - Reverse flow in e-commerce

  1. 1. Returns Necessary Evil OR USP ?
  3. 3. TYPICAL RETURNS LEVELS Children’s wear Electrical Footwear Menswear Ladieswear Occasionwear 10 – 20% 20 – 30% 30 – 60%
  4. 4. Making returns easy, whilst maximising sales? We promote ease of return: •21-day Home Approval Guarantee (HAG) •Returns are free •Returns are fast •Returns are convenient – lots of options •Xmas amnesty – gifts Which drives customer experience but brings challenges
  5. 5. The returns challenge Over 6M returns parcels p.a. - Of which over 100k are ‘2-man’ items Fast credit is essential - Customers may be waiting to shop again - Confirmation of credit SMS, VTL, Email Make it easy for customers: -Speed -Quality -Damage -GLIT
  6. 6. The response 3 core returns options - Customer’s choice to suit lifestyle Drive all carriers to speed/consistency - Long term average 2 working days: contact to credit - Continual monitoring & feedback to carriers - By store/depot/postcode - Drill down into tracking - Investigate and resolve outliers
  7. 7. How? Consistent experience - Phone - IVR - Internet
  8. 8. Simple process
  9. 9. Choice of carrier
  10. 10. Single integrated returns label Royal Mail Indicia Collect+ barcode
  11. 11. Cons •Low rural penetration •Harder to drive consistency across network of stores Pros •Convenient •Long opening hours •Large store network •Slick process •Fully tracked •Innovative
  12. 12. Cons •Lower urban penetration •Opening hours •Minimal tracking •5kg limit Pros •Largest network •Universal coverage •Fast •Consistent process •Consistent experience
  13. 13. Cons •Customer ‘waiting in’ •‘Leave safe’ not trusted •Drivers operate 9-5 •Highest cost •Low customer compliance •20%+ carded Pros •Ideal for heavy items •National coverage •Customer selects date •Mon-Sat •Fully tracked •Couriers can arrange time to suit customer •Also available ‘at the door’ or arrangement with local courier
  14. 14. Cons •Customer has to wait in •3-5 day service •Working hours/days only •Low level of customer compliance Pros •Same carrier as used for ‘2-man’ deliveries •National coverage •Fully tracked •Customer pre-advised of collection time slot •Delivery/replacement service available
  15. 15. How do they compare (speed)? Length of time taken to credit a return to account (1 man) P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P1 P2 Period Averageworkingdays RM UnSchd Schd Coll +
  16. 16. Consistency is as important as speed How variable is our performance ? 0% 10% 20% 30% 40% 50% 60% 70% Number of working days Percent current period Last Period
  17. 17. Returns Processing
  18. 18. Headline Facts Wrexham Small & Light Products 11.3m units p.a 100k units p.a Heavy & Large Products Raven
  19. 19. Purpose Credit customer accounts with speed and accuracy Maximise the value of returns Return items to stock quickly Process returns efficiently Returns avoidance
  20. 20. A Focus on Raven 5 Floors 210k Sq Ft Head count 700 Flexible shifts 06:30 – 22:30
  21. 21. A Typical Day Clothing / Hanging 77% Typically 24k parcels 43K items Footwear 15% Hardware 8% Received and Streamed
  22. 22. 3% Output Sampling Measured Work R-Log System Efficient Process with Speed & Accuracy Examined/ Processed/ Credited
  23. 23. DON’T BLINK
  24. 24. Clearance 3.24% Returned to Vendor 5.12% Fit for stock 91.47% Returned to Customer 0.17% Value Adding
  25. 25. Same day 73% 48 hours 98% Next day 23% Items Returned to Stock
  26. 26. Customer After Sales Support Returns Prevention Product Sourcing/ Quality Checking Order Fulfilment Process More Informed Purchasing
  27. 27. THANK YOU • QUESTIONS • Returns? Millstone or USP • Do consumers require the same level of choice on returns as they do with deliveries? • Should returns be free?