Contenu connexe Similaire à Bill Stankiewicz Verstrepen (20) Plus de BillStankiewicz (20) Bill Stankiewicz Verstrepen1. www.vil.be
Eye For Transport Amsterdam
September 27th, 2007
Workshop
Reverse
Logistics
Workshop Reverse Logistics
in the hi-tech & electronics
industry
www.vil.be
© Flanders Institute for Logistics
Jordaenskaai 25
B-2000 Antwerpen
Belgium
1
VIL © 2007
2. www.vil.be
Flanders Institute for Logistics (VIL)
Reverse
Logistics
Workshop
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VIL © 2007
3. www.vil.be
What is reverse logistics?
The reverse logistics process covers the return flow of materials
from end customer towards manufacturing site:
Reverse Physical flow
Logistics Admin flow
Workshop
Financial flow
Reverse flows are characterized by their extremely variable nature:
Volume
Quality
Quantity
Value
Throughput times
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4. www.vil.be
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)
Reverse
Logistics High importance of ICT for sorting /routing / SLA management
Workshop
/ 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…
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5. www.vil.be
Is this your company?
Our customers are returning too many products!
Our “no fault found” rate is 40%!
Reverse
We have too many intercompany returns!
Logistics
Workshop
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…?
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6. www.vil.be
Methodology: DMAIC (Six Sigma)
1) Define
Reverse
Logistics
2) Measure
Workshop
3) Analyse
4) Improve
5) Control
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7. www.vil.be
Define: perception of unimportance
(no process owner)
Reverse
Logistics
Workshop
“The returned-goods dock of a warehouse is a window
VIL © 2007
to mistakes in engineering, sales, manufacturing and logistics.”
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Measure: returns from end customers
6.00%
9.0
8.0
5.00% 4.77% 4.77%
7.0
4.00% 6.0
CI
Reverse
% of tu rn over
5.0 GS
Logistics
3.00% HE
TOT
Workshop
2.42% 4.0
1.92%
2.00% 3.0
1.17% 2.0
1.00%
1.0
0.00% 0.0
BE60 NL60 LU60 BENELUX GB60 DK60 IT60 ES60 PT60 IBERIA NO60 SE60 FI60 NORDIC
CI GS IN HE NDT
BG
End customers are returning 3-6 % of total turnover and orderlines
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Measure: return reasons
60
50
Reverse
Logistics 40
Workshop
% of companies
30
20
10
0
Transport Not happy Delivery error Quality defect Cancellation No reason Late delivery Bad FC & Return after Commercial
damage with product of sale overstock use
Return reason
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Analyse: return value as % of turnover
Reverse
Logistics
Workshop
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Analyse: share of RL in total logistics workload
Reverse
Logistics
Workshop
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Analyse: detailed process map (IDEF0)
Reverse
Logistics
Workshop
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Analyse: returns pipeline (Pareto)
Pareto Analysis of Return Orders
100,00%
80% of return orders account
90,00% for 20% of total return value
Reverse 80,00%
Logistics Exactly 20% of return orders
account for 80% of total
Workshop 70,00%
return value
Cum. Return Value
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
Cum. % of Return Orders
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Analyse: time-stamp analysis
Reverse
Logistics
Workshop
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Analyse: root causes (Ishikawa)
Reverse
Logistics
Workshop
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Improve: take action
Combat “no fault found”
Separate RC from DC
Select and measure necessary KPI’s
Publish monthly return reports
Reverse
Logistics Educate salesforce and customers
Workshop
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…
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Control: elements of a total RL make-over
systems/
cost model KPI
legislation/
rules
Reverse infrastructure
Logistics
Workshop
partners
company/
product
packaging
HR/skills
product
process/ transport
flows
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Checklist product
High value density
Serrato category
Volume & weight
Warehouse space needed (#pallet places)
Seasonality (Christmas) -> forecasting?
Reverse Statistics (MTBF)
Logistics
Workshop
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
VIL © 2007 Cannibalisation (e.g. ink cartridges) 18
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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)
Reverse
Logistics Large reception area: FIFO per country/product
Workshop
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 19
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Checklist ICT/KPI’s/reporting
Identify KPI’s and collect historical data:
# returns/product
# returns/return reason
# returns/customer
Return rate/country
Reverse Credit note amount
Logistics
Workshop
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
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Checklist HR/skills
Seasonality/peak loads: enable flex work
Product training & technical skills (e.g. I-Pod)
FTE admin/floor ratio: ca. 1/3
Reverse
Logistics Responsibility & accuracy (sorting/routing/scrap decisions)
Workshop
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 ?”
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Checklist rules/legislation
WEEE
Recupel: volumes reporting
Vlarem II: limits the volume of “scrap inventory” allowed
Reverse
Logistics
Workshop
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)
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VIL maturity model for RL: where are you?
Reverse
Logistics
Workshop
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A complete VIL research report with
3PL roadmap for action
will be available in the fall of 2007.
Reverse
Logistics
Workshop
Questions?
sven.verstrepen@vil.be
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Reverse
www.vil.be
Logistics
Workshop © All Rights Reserved
Flanders Institute for Logistics (VIL)
Jordaenskaai 25
B-2000 Antwerpen (Belgium)
T: +32 (0) 3 229 05 00
F: +32 (0) 3 229 05 10
25
VIL © 2007