For example, the ReturnsOnline facility in Covington, Georgia, was specially designed to handle backward flows. This returns center is smaller than many DCs, only 75,000 square feet, and a visitor sees a different layout--scanning stations and sorting stations right next to the dock.
At book publishing returns centers, much more area is devoted to staging. The idea is not to put away individual books but to wait until there are enough books from the same area to make a trip worthwhile.
e-Business and Reverse Logistics
The best estimate for typical return rates associated with e-business is offered by the Center for Logistics Management at the University of Nevada. Its conservative estimate is that 6 percent of all goods may be returned, but it concedes that the true number may be closer to 8 percent. Even so, this is a much lower number than has been cited by other analyst firms and in the trade press.
The truth is that while returns for things like apparel are higher if bought online than if purchased in stores, in other areas the return rate is actually lower. For example, Dell Computer Corp. says about 5 percent of its online computer purchases are returned, versus CompUSA's 10 percent return rate. The reason? Dell employs gatekeepers. No computer can be returned unless a phone call has been placed to a technical customer service representative. The agents can often walk consumers through set-up and early usage issues and, in effect, talk them out of returning the machines. In fact, the gatekeeping function can actually provide an opportunity to upsell and cross-sell.
Reverse Logistics Providers
e-RMA's solutions enable return requests to be submitted over the Internet on forms customized by the merchant. The system offers real-time reports on the products returned and the reasons and sources of returns. This not only helps expedite the returns process but also gives sellers valuable information that can be used to develop return-reducing strategies. Customer service representatives (CSRs) can issue a return authorization number, reject the request or ask for additional information.
Yantra's solution also has an Internet order management component that allows a CSR to act as a gatekeeper. The architecture allows the return to be tied back to the original order so the CSR can understand the return restrictions on that particular product. It also helps ensure that the correct product has been sent back.
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