the reverse logistics dilemma - the transportation and ... · reverse logistics dilemma . solution....

Reverse Logistics Dilemma

The Reverse Logistics Dilemma Moderator Gailen Vick

Founder & Executive Director of RLA

Panelist Maria E Molina

Business Development Manager, PlanITROI &

John Sessions Director of Business Development, Encompass


• To support third party service providers (3PSPs) • To educate OEMs & Retailers on why they need

to outsource their RL • To enable Private Industry, Consultants,

Academics & Governments to connect and share new ideas and opportunities

Why Was The RLA Formed?


CORPORATE IDENTITY CHANGE

•Customer Service (helpdesk) •Depot Repair/ReMan •Service Logistics (Field Service)

–Transportation/Warehousing –Spare Parts Management –RMA Management –Replacement Management

•Refurbishment •Screening/Count Auditing •End-of-life Manufacturing •Remanufacturing •Fulfillment Services •IT Process Management •Recycling •Scrap/Waste Management •Gray/B Channel Management •Warranty Management •Asset Management •Sustainability •Environmental Resources

After Purchase Life Cycle INDUSTRY

Life Cycle Management

= E Q U A L S

=

Industry Definition

“Reverse Logistics is the process of managing assets (whether negative or positive) after a product or service is purchased or

consumed in all industries and across all disciplines”….

TERMINOLOGY

Automotive & HD Remanufacturing

Retail Grocery Unsaleables

Space & Aviation Obsolescence

Consumer Products After Market Supply Chain

Hospitality Reader Board Shopping

Apparel Merchandise Returns

White Goods Takeback’s

R E V E R S E

L O G I S T I C S

= E Q U A L S

=

Military Retrograde

Furniture Rebuilders/Refurb

Reverse Logistics Terminology by Industry


To educate industries about Reverse Logistics processes which are common to all. Along with Certification of RL Professionals.

To produce events around the world where OEMs, ODMs, Branded and Retail companies receive information on RL support services.

What Is The RLA’s Mission?


• Environmental Resources • Sustainability

Where Does Reverse Logistics Fit?

CORPORATE IDENTITY CHANGE

• PCB Assembly • Box Assembly • Volume Manufacturing • Integration • Configuration • Final Testing • Distribution to Customer • Customer Fulfillment • Transportation

• Vendor Relations • Planning • Procurement Inventory Planning • Component Fabrication

• Design Development • Technology Roadmaps • ASIC Development • Mechanical Design • PCB Layout • Prototyping • New Product Introduction

Aftermarket Customer Services

Manufacturing & Distribution

Material Management

New Product Development

REVERSE LOGISTICS E N D U S E R / C O N S U M E R

FORWARD LOGISTICS

Supply Chain - After Market Supply Chain PRODUCT LIFE CYCLE

•Customer Service (helpdesk) •Depot Repair/ReMan •Service Logistics (Field Service)

–Transportation/Warehousing –Spare Parts Management –RMA Management –Replacement Management

•Refurbishment •Screening/Count Auditing •End-of-life Manufacturing •Remanufacturing •Fulfillment Services •IT Process Management •Recycling •Scrap/Waste Management •Gray/B Channel Management •Warranty Management •Asset Management •Sustainability •Environmental Resources


Direction comes from two bodies, Advisory Board & Industry Committees

SENIOR MANAGER, REVERSE Logistics - Dave Moloney

http://www.dell.com/

http://hp.com/

http://cisco.com/

http://www.walmart.com/

http://www.google.com/


www.RLmagazine.com

• 73 Editions • WW Circulation of 50,000+ • Published Monthly • e-reader formats

kindle

https://plus.google.com/104629412415657030658

http://www.apple.com/


The Dilemma di·lem·ma:

a difficult or persistent problem

Source: Merriam-Webster dictionary


Reverse Logistics Dilemma Every Company Has An RL Dilemma

• Obvious- Consumer Electronics, Computers,

Automotive

• Not so obvious- Books, Apparel, Retail, Grocery, Software

• Practically invisible- Pharmaceuticals, Aerospace, Agriculture,

Medical, Energy


Companies Are Not Aware of the Dilemma!

Senior Management Frequently Unaware Of: - Size of RL operations - Cost of RL operations - Impact of RL operations on bottom line - Impact of RL operation on customer service - Impact of legislation on RL - Many line/staff managers don’t know RL Operations even exist

SEE THIS MISS THIS


How to Make a Difference

• Ownership within Enterprise Who Owns the RL Function?

• Distributed across functions • “Hidden” in operations or customer service

• Measurement Tools to measure the performance of RL?

• Few, specialized software tools • Financially absorbed in other departmental budgets


The RL Impact • Finance

What are the true costs / benefits to the organization? • I.E. Actual costs vs. retained asset value

• Operations How is RL affecting operational efficiency? • I.E. Quality improvements based on RL

• Sales & Marketing What is the effect of RL on sales? • I.E. Customer satisfaction, brand reputation,

remanufactured goods impacting prices

RL affects the bottom line


Source: RLA Amsterdam Conference 2010, Keynote Address Rehman Mohammed, Cisco


Sources: RLA Amsterdam Conference 2010, Keynote Address Rehman Mohammed, Cisco & Investor.cisco.com – FY 2009

(2.4% of FY’09 Net Income)

FY’09 Net Income – $ 6.1 Billion GAAP


What is the Impact to Mother Earth? • Environmental

• Are we a good corporate citizen? • Are we alienating clients?

• Governmental / Legislative • Are we meeting governmental requirements? • Are we open to legal action?

• E.g. RoHs, WEEE, SB 50 • Bottom Line Cost

• 3% to 15% in every company

It all affects the bottom line


$63.12 Trillion Global GDP

1-3% is RL Opportunity

Global RL Reverse Logistics - $3.15 Trillion

RL Trends


Solution

The Chief Reverse Logistics Officer (CRLO) would: • Have authority to make changes on RL globally, but day-to-day responsibility stays in the hands of

each Department

• Monitor the P & L to develop a Virtual profit center

• Acquire the necessary tools to support the finance department and report effectively to the Executive Staff

Resolve The Dilemma

Create A “C” Level Position For RL Management


Questions


Thank You!

Gailen Vick, Executive Director Reverse Logistics Association

801-331-8949 x11 [email protected]

the reverse logistics dilemma - the transportation and ... · reverse logistics dilemma . solution....

Documents