The E-Commerce Hangover: Reverse Logistics Tony Sciarrotta Executive Director [email protected] * 678-662-7767 The Reverse Logistics Association www.rla.org Member Driven Global Trade Group For Returns Solutions
Mar 14, 2020
The E-Commerce Hangover: Reverse Logistics
Tony Sciarrotta
Executive [email protected] * 678-662-7767
The Reverse Logistics Associationwww.rla.org
Member Driven Global Trade Group For Returns Solutions
Overview Make it easy for people to shop online:
and oh, they will…then they will return 25-35% of sales
vs. 8-9% in actual stores.
In this session with the RLA, we will discuss:1. The growing omni-channel returns and service issues
2. The E-Commerce and IoT Effects
3. Impact of the consumer purchase and delivery experience
• Distribution Efficiency
➢ Receiving & shipping – labor-intensive / non value-added service
• Increase capacity per DC opposed to adding more DC’s.
• Traditional labeling is the limiting factor in achieving higher throughputs
➢ Must cut costs to remain competitive
• Reduce labor, time and shipping costs
➢ DC’s need to be increasingly flexible to serve E-Commerce and traditional retail
➢ Labeling technology
• Same day delivery ultimate goal!
Market Need
6
Create New Delivery Products
7
Creating products by targeting specific segments supports the creation of a differentiated delivery experience
Product design should focus on speed and new features
➢ Same day solutions are becoming commercialized
➢ Secure delivery + speed are most interesting to urban consumers
➢ Dynamic Re-Routing is being well received by customers
➢ Late evening and weekend deliveries are becoming regular
Fulfillment services
Trend Today: Ship From Store1. A few reasons: one of the primary reasons is for inventory
optimization. 2. Balancing how much to ship from store? 3. Speed vs. Reduced Shipping Cost
Consumer behavior is shifting:
■ Ecommerce growing 15% annually
■ Ecommerce sales reach $500B by 2018
■ Returns are 2-3 times brick & mortar rates
■ Buyers expect no hassle, cross-channel, free
freight, unlimited return policies
The “E” Effect
Consumer products are changing:
■ IoT (Internet of Things) everywhere
■ Data is king – and IoT tracks consumer behavior
■ Interoperability and connectivity are critical
■ IoT has over 300 variations (IEEE standards)
■ Products may not talk to each other
■ Returns are 5x higher with IoT products
The “IoT” Effect
• Reverse Logistics Efficiency
• Receiving of returns – labor-intensive / non value-added service
• Increase capacity and throughput per DC opposed to adding more DC’s.
• Traditional labeling is a limiting factor – SQRL label standard option
• Must increase yield and asset recovery to remain competitive
• DC’s need to be increasingly flexible to serve E-Commerce and retail
Reverse Logistics Market Need
14
• Amazon Prime Day example
– 100 million packages sold forward
• Estimated 20 million plus packages returned
• Reducing touch and shipping points
• Carriers doing refurbishment work (UPS, FedEx)
• End to end solutions with processing and reselling
• Same day processing and disposition is ultimate goal
Reverse Logistics Market Solutions
15
USE CASES…
• Consolidate labels
• Single Swipe scanning
Leave empty• Pre-sales
– Customer Support FAQ
– Warehouse
– Fraud Detection
• Post Sales– Returns– Logistics &
Disposition
– Repair triage & record keeping