Dr Jonathan Gorst, Sheffield Business School

Wednesday 29th November, 2017

Agenda

• Retail Returns - the research background

• The Challenges

• The Returns Tool Kit

Cross University Project

Jonathan Gorst - Sheffield Business School

Mike Bernon - Cranfield School of Management

John Cullen - University of Sheffield, Management School

Juliana Meira - University of Sheffield, Management School

Good supply chain practice

Slick…

Retail Returns in 2000’s

… not so slick

• Value of returns £5.75bn

• Returns of above 30% were common in

certain areas

• Indication of poor returns management

processes

• Impact on sustainable distribution

Initial investigation into UK

Retail Returns(completed April 2004)

Size of the issue

Estimates:

• UK - £5.75bn (Bernon and Cullen, 2004)

• US $260.5bn (National Retail Federation, 2015)

• Globally $642.6bn (MarketWatch, 2015)

US Economy 6.3 times bigger than UK

Using US figure as an estimate for UK. UK would be $41.3 equates to £33.5bn

Core Themes

• Avoidance – Reduce the level of returns experienced

• Returns management– Identify effective product return processes and

networks to minimise logistics costs and maximise asset recovery

• Product dispositioning– Considers the options for product disposal that

maximise asset recovery while minimising the impact on the environment

Challenges

• Provide good customer service while managing

costs

• Differentiate between customer needs and

customer wants

• Understand costs by delivery channel

• Should different distribution channels be

subsidising other channels?

• What is the competition doing?– Are we a leader or a follower?

Tool Kit 1.0 - Key Areas

• Reporting at senior level

• Quality costing for initiativesCost and performance

measurement

• Manufacturer RMA – by phone in-store

• In-home information eg quick start guidesAvoidance or returns

• The role of the store – accessories!

• Speed – time value of productsProcess management

• In-house / outsource

• Separate networkPhysical network design

• Clock speed for short PLC products

• Asset management & dispositioning rulesInventory management

• Product handling

• Completeness & asset values Material handling

• Consumer return data fed back to product designInformation technology

• Transport emissions and natural resource managementSustainability

• Suppliers

• LegislationCompliance

Toolkit OverviewSelf assessment

scoring

‘Help’

drop down boxes

Self assessment

statements

Hyperlink

appendices

Current Research(work in progress)

Additional Sections:

• Omni Channel

• Value Proposition

• The Role of the Returns Manager

• Technology and Data

Retail Returns Tool Kit 2.0

Omni Channel

Value Proposition

The Role of the Returns

Manager

Technology and Data

www.reboundreturns.com

www.thereturnsrevolution.com

Other Returns Research

4 studies in 2016 to get your teeth into

• Strong fashion focus.

• Benchmarks 200+ brands international return

policies

• Reveals there is more to a return policy than

meets the eye. A very thorough study based

on 7 key metrics. E.g. choice of return

method, cost of return, ease of navigation to

find the returns policy.

Checkout ‘The Great Returns Race’ benchmark produced by returns

specialists ReBOUND.

“REVOLUTIONISING RETURNS”

Latest reports from 2017

RETAILERS IN THE AUDIENCE

Discover clear steps to improve your own

returns policies.

NON-RETAILERS

Gain insight into industry trends and which

retailers are exhibiting best-practice in

returns.

www.reboundreturns.com

www.thereturnsrevolution.com “REVOLUTIONISING RETURNS”

Download your copy of the Great

Returns Race here:

www.reboundreturns.com/returns-benchmark

Questions