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
- 2. THE DIFFERENCE BETWEEN ONLINE AND THE HIGH STREET
- 3. TYPICAL RETURNS LEVELS Children’s wear Electrical Footwear Menswear Ladieswear Occasionwear 10 – 20% 20 – 30% 30 – 60%
- 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. 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. 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. How? Consistent experience - Phone - IVR - Internet
- 10. Single integrated returns label Royal Mail Indicia Collect+ barcode
- 12. 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
- 13. Cons •Lower urban penetration •Opening hours •Minimal tracking •5kg limit Pros •Largest network •Universal coverage •Fast •Consistent process •Consistent experience
- 14. 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
- 15. 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
- 16. 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 +
- 17. 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
- 19. Headline Facts Wrexham Small & Light Products 11.3m units p.a 100k units p.a Heavy & Large Products Raven
- 20. Purpose Credit customer accounts with speed and accuracy Maximise the value of returns Return items to stock quickly Process returns efficiently Returns avoidance
- 21. A Focus on Raven 5 Floors 210k Sq Ft Head count 700 Flexible shifts 06:30 – 22:30
- 22. A Typical Day Clothing / Hanging 77% Typically 24k parcels 43K items Footwear 15% Hardware 8% Received and Streamed
- 23. 3% Output Sampling Measured Work R-Log System Efficient Process with Speed & Accuracy Examined/ Processed/ Credited
- 24. DON’T BLINK
- 25. Clearance 3.24% Returned to Vendor 5.12% Fit for stock 91.47% Returned to Customer 0.17% Value Adding
- 26. Same day 73% 48 hours 98% Next day 23% Items Returned to Stock
- 27. Customer After Sales Support Returns Prevention Product Sourcing/ Quality Checking Order Fulfilment Process More Informed Purchasing
- 28. 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?
Notes de l'éditeur
- Ops supporting our retail colleagues! Obviously, visibility of stock in store is the first difference any retailer notices moving to e-comm, hence the requirement for a dedicated e-comm DC In a store, customers can try before they buy, large numbers of clothes go through the changing rooms, fewer to the till How do we replicate this in e-comm, allow customers to be confident clothes will suit them and fit without driving high volumes of returns.
- High returns drives high levels of cost and erodes margin. Also makes it more likely an item will be completely unsalable
- Wrexham Strategic partnership…
- Key Points – what’s important to us… 1: Returns are a necessary part of the way we trade (certain lines planned returns +50%) yet represent a failure cost, hence important we do what we do as cost efficiently as we can 2: Customers purchasing potential is predicated by having available credit to spend on their account, hence passing credit on returns quickly and accurately is extremely important. 3: Returns are a fundamental part of the way we trade, single biggest trading supplier to our business, hence recovery of returns back to stock is vital. 4: Orders are taken against expected returns hence having a flow of returns stock constantly available is essential, hence speed is important. 5: Lots of opportunities to avoid returns and still offer the customer choice.
- Built in 1907 Heritage site 250 people flexi-shifts (2000 hrs per week) From 5-7hrs and 4-6hrs Agency 34 FTE 609 (flexed up)
- Predominantly clothing Items are then streamed throughout the building for processing Capacity 100k Peaks currently at 65k
- Primary process in the building within which most people are engaged. R Log system Same process, different product throughout the building Operators on target – upward of 30 p/h dependant upon product 3% sampling of output Key indices – Accuracy / Presentation
- Talk about refurbishment….. Talk about secondary inspection Talk about compliance…. 2 Man comparison….30% Fit for stock, driven by low recovery on furniture flatpack. Within the mix 60% on TV’s WG 50%
- Back to stock 73% same day, 23% next day, 98% 2 days. Returns sensitivity…within 15mins of being located on WMS they can satisfy a pick.
- More informed purchasing – social media, product reviews, sizing, videos, imagery, avatars The fulfilment process – accuracy, timely delivery/ when they want it Customer After sales support - Anovo, GBM, Ecomaster, NESN Compliance