bill stankiewicz verstrepen
DESCRIPTION
You are viewing presentations from conferences that I have attended. Please enjoy & if we can help you with any logistics projects in the Americas please contact me at 678.364.3475Bill was also on the Board of Directors for the St.Vincent DePaul Foodbank in Roseville California helping with the fund raising and meals to the poor program. While based in Northern California he was successful in fund raising programs for the Crusade of Mercy and helped Father Dan Madigan at the Sacramento Food Bank also. For 2008, Bill is a member of the Board for WORKTEC on also an Advisory Board Member for Boys and Girls Club for Metro Atlanta-Clayton County Chapter. See www.worktec.biz or www.bgcma.org . Bill is also on the Board of Directors for the Southeastern Warehouse Association & represents Georgia for 2010-2012.Regards,Bill StankiewiczVice President and General ManagerShippers WarehouseEmail: [email protected]://www.linkedin.com/in/billstankiewicz2006http://twitter.com/BillStankiewiczhttp://www.topexecutivesnet.com/index.aspxTRANSCRIPT
1
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Eye For Transport AmsterdamSeptember 27th, 2007
WorkshopReverse Logisticsin the hi-tech & electronics
industry
www.vil.be
© Flanders Institute for LogisticsJordaenskaai 25
B-2000 AntwerpenBelgium
2
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Flanders Institute for Logistics (VIL)
3
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
What is reverse logistics?
� The reverse logistics process covers the return flow of materialsfrom end customer towards manufacturing site:
� Physical flow
� Admin flow
� Financial flow
� Reverse flows are characterized by their extremely variable nature:
� Volume
� Quality
� Quantity
� Value
� Throughput times
4
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
RL trends in hi-tech/electronics
� Time is money: very fast devaluation of products
� Trend towards pan-European or global service networks
� Huge potential for 3PL’s
� Use of RMA (capture each return asap in the process)
� High importance of ICT for sorting /routing / SLA management
/ customer contact
� High percentage “no trouble found” (up to 40%)
� Return policy is essential (gatekeeping/filter the influx)
� Technical product knowledge needed from 3PL (e.g. I-Pod)
� B2B: credit check is important part of the process
� Reverse logistics and after sales are becoming profit centers
� Etc…
5
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Is this your company?
� Our customers are returning too many products!
� Our “no fault found” rate is 40%!
� We have too many intercompany returns!
� We neve see any credit from our OEM suppliers!
� Our salesforce isn’t playing by the rules!
� There is no transparency - We have no information or reports!
� Our returns situation is an accounting nightmare!
� Our returns process will always be out of
control – Let’s accept this as a fact of life…?
6
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Methodology: DMAIC (Six Sigma)
1) Define
2) Measure
3) Analyse
4) Improve
5) Control
7
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Define: perception of unimportance
(no process owner)
“The returned-goods dock of a warehouse is a window
to mistakes in engineering, sales, manufacturing and logistics.”
8
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Measure: returns from end customers
2.42%
4.77% 4.77%
1.92%
1.17%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
CI GS IN HE NDT
BG
% o
f tu
rno
ve
r
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
BE60 NL60 LU60 BENELUX GB60 DK60 IT60 ES60 PT60 IBERIA NO60 SE60 FI60 NORDIC
CI
GS
HE
TOT
End customers are returning 3-6 % of total turnover and orderlines
9
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Measure: return reasons
0
10
20
30
40
50
60
Transport
damage
Not happy
with product
Delivery error Quality defect Cancellation
of sale
No reason Late delivery Bad FC &
overstock
Return after
use
Commercial
Return reason
% o
f c
om
pa
nie
s
10
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Analyse: return value as % of turnover
11
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Analyse: share of RL in total logistics workload
12
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Analyse: detailed process map (IDEF0)
13
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Analyse: returns pipeline (Pareto)Pareto Analysis of Return Orders
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
80,00%
90,00%
100,00%
Cum. % of Return Orders
Cu
m.
Re
turn
Va
lue
Exactly 20% of return orders
account for 80% of total
return value
80% of return orders account
for 20% of total return value
14
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Analyse: time-stamp analysis
15
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Analyse: root causes (Ishikawa)
16
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Improve: take action
� Combat “no fault found”
� Separate RC from DC
� Select and measure necessary KPI’s
� Publish monthly return reports
� Educate salesforce and customers
� Gatekeeping / reduce the influx (return policy - RMA)
� Document returns (photos)
� Interface different ICT systems
� Correct master + data (I/C pricing)
� Automatic accounting procedures (write-off)
� Organizational discipline: prevent problems at the source
� It’s not rocket science! (e.g call center headsets)
� Etc…
17
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Control: elements of a total RL make-over
company/
product
infrastructure
legislation/
rules
process/
flows
product
HR/skills
systems/
KPIcost model
partners
transport
packaging
18
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Checklist product� High value density
� Serrato category
� Volume & weight
� Warehouse space needed (#pallet places)
� Seasonality (Christmas) -> forecasting?
� Statistics (MTBF)
� LT service contracts: B2B slow movers/spare parts needed (often >10 years)
� Top-5 return reasons (incl. no fault found!)
� Technical porduct knowledge needed
� High specialisation: “lock-in” of customer
� Inventarize 2nd hand/grey channels
� Play the recycling market (gold, silver)
� Risk management:
� Theft
� Environment (e.g. batteries)
� Fast product depreciation
� Cannibalisation (e.g. ink cartridges)
19
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Checklist infrastructure (warehouse)
� Keep “clean” and “dirty” flows separate: brownfield or greenfield ERC?
� # inbound docks > # outbound docks
� Automation potential is low
� Low and wide racks (manual picking, lots of buffer inventory)
� Use mezzanines (lots of slow movers/high value density/spare parts)
� Large reception area: FIFO per country/product
� Repackaging area
� Scattered desks & PC-islands (inspection/testing)
� Separate inventory areas for phase-outs & spare parts (slow movers), packaging, refurbished items, swap stock
� Separate guarded area for scrapping/shredding (containers)
� Theft risk: fencing, badge access, CCTV, night guards, “Fort Knox” area for refurbished items
� ERC economies of scale/consolidation potential: high
20
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Checklist ICT/KPI’s/reporting
� Identify KPI’s and collect historical data:
� # returns/product
� # returns/return reason
� # returns/customer
� Return rate/country
� Credit note amount
� Re-return rate
� # returns processed/day
� Cost/returned item
� Document throughput times (time stamps/SLA’s)
� Visibility of flows (web-enabled tracking & tracing)
� Open systems: interface/integrate with customer ERP (B2B)
� Call center: SLA contract management software needed
� Develop in-house ICT competente <-> find an ICT partner
21
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Checklist HR/skills
� Seasonality/peak loads: enable flex work
� Product training & technical skills (e.g. I-Pod)
� FTE admin/floor ratio: ca. 1/3
� Responsibility & accuracy (sorting/routing/scrap decisions)
� Knowledge of languages (RMA - English, French, German)
� ICT skills (SAP, Excel, Outlook)
� Procedural accuracy
� Dexterity, concentration, sharp eyesight
� Routine activities: socially beneficial employment (e.g. scrapping of ink cartridges)
� Job enrichment for outbound warehouse employees
� “Is reverse logistics female ?”
22
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Checklist rules/legislation
� WEEE
� Recupel: volumes reporting
� Vlarem II: limits the volume of “scrap inventory” allowed
� Shredding: OVAM + tax certification
� Sarbanes-Oxley: valuation of refurbished inventory
� ISO14001 (environmental compliance)
� TL9000 (B2B telecom)
� ISO 18000: health & safety (dangerous compounds)
� Customs and export (crossing EU borders)
� Pallet fumigation (USA/ASPAC)
23
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
VIL maturity model for RL: where are you?
24
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
Questions?
A complete VIL research report with
3PL roadmap for action
will be available in the fall of 2007.
25
www.vil.be
ReverseLogistics
Workshop
VIL © 2007
www.vil.be
© All Rights Reserved
Flanders Institute for Logistics (VIL)Jordaenskaai 25
B-2000 Antwerpen (Belgium)T: +32 (0) 3 229 05 00F: +32 (0) 3 229 05 10