The E-Commerce Hangover: Reverse Logistics

Tony Sciarrotta

Executive Directortony@rla.org * 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

RL News

RLA Memberships RLA Monthly Industry Committees

RLA Events

Market Trends

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• 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

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Create New Delivery Products

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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

Returns Are The Rule

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

The Amount of Online Returns Will Overtake Brick & Mortar Returns Soon

• 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

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• 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

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Questions?

New Label Standard for QR Codes

Standard QR Labels

ANSI StandardMH10.9.2.12N

SQRL

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

Over 30 Different Categories and Labels

19Plus more! Each courier service has different labels!!!

How Many Barcodes?

ONE LABEL DOES IT ALL!