Feature Article
Reverse Logistics
It’s more than just distributing Pallets
How does your company view Reverse Logistics activities? Do you see it as an after-thought, a necessary “evil”, simply a cost to your Retail or Sales business? If you’ve answered yes to any of these an opportunity exists to expand your view of this aspect of your business portfolio.
Typically, the charter of the Reverse Logistics process is to provide a service focused on processing a Company’s Customer returns. These Customer returns are received, the customer credited, the product sorted, evaluated and consolidated. It's then distributed to the Original Equipment Manufacturer, in the case of in-warranty products, or sold directly or indirectly into secondary markets. Some companies see it simply as a means to provide a service to the original Customer. Others see it as a “cost” to the business and a process that should be squeezed of as much processing overhead as possible. While both perspectives are valid, we believe the horizon of value is much broader than that!
The optimum value of the reverse logistics process is one of Business Intelligence, an opportunity to understand what is it about the original sales and marketing, product design, and product manufacturing processes that led to the return of product through the reverse logistics process.
Let us look at some of the information you could glean from a reverse logistics process. Following is just a handful of thoughts, many more exist:
What products are being returned, from whom, and for what reason?
What channels sold the product in the first place? Is there something about the specific channel, or the channel clients, that may create an opportunity for improvement?
Are the returned products opened or unopened? If unopened, what is it about the process that caused unopened returns to be sent downstream and not put back on the shelf at the Retailer? Is there really a risk to the business to restock the item?
Where are the products being returned from? Is there something geographically that is causing the return? Are the markets, and return activities, different from region to region? Should they be?
If the returns are opened, are the return rates (as a % of 1st market sale) out of tolerance? Is there something about the product design/performance, the way the product is marketed, or the customer perception of the product that needs to be addressed?
Looking beyond the obvious reasons for a Reverse Logistic process can create value for all parties involved in the product sale. The opportunity is for Reverse Logistics Providers to recognize the value they bring to the table goes beyond how well they move products/pallets through a process but rather how well they can help their Customer sell products and keep those products sold.
If your company is seeking ways to bring Business Intelligence services to your Customers, consider getting assistance from the team at ASIL. The professionals at ASIL are Supply Chain experts well versed in driving Business Intelligence efforts in Reverse Supply Chains. We can assist you in developing the appropriate strategy and tactics from which to build your Business Intelligence programs. We welcome the opportunity to help navigate your journey to successful outcomes. Call us today and let us help you achieve new areas of performance, insight and flexibility in this ever changing economic climate.
Contributed by Warren White
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Editor's Corner
Increasing Productivity
If you’re serious about achieving things that really matter, you can’t do it all through sheer hard work. Sometimes the most ‘productive’ thing you can do is to take a break. It can do you a world of good.
Studies show that the brain needs time to relax, even during the day. This can be as simple as a walk around the building, chatting with a friend, or reading something interesting. Anything to take your mind off the problem at hand. These short breaks can revitalize your energy and boost your creative processes.
So, here’s a challenge: For the next ten minutes, turn off all distractions and take time to read this newsletter. Afterwards, see if you don't feel re-energized!
Contributed by: Michael Singleton
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Industry Trends
Curbing The Diffusion of Team Responsibility
When forming new teams within a company, obstacles may obscure the responsibility within the team. Responsibility and accountability within a team is crucial for that team to move closer to their goals. If the team is ineffective, then it would be logical to assume that they will not move from their starting point. Diffusion of responsibility can occur for a variety of reasons and knowing why this happens can shine some light on what you can do to help alleviate the situation and continue to progress towards your goal.
Insufficient Leadership
Leadership within a team is crucial. A team's direction is set by the team leader and her/his task is to help guide the other members by showing them what actions will be needed in order to meet the intended goal. A leader can also instill accountability within a group, much like a boss would do for a department.
Make sure your team has a leader or someone the group can be held accountable, then work to create consensus on how the team should proceed to complete their preset objectives.
No Initiative From Team Members
There are teams that just cannot seem to get much done because the members don’t take the initiative. This will drive a result that generally could be lackluster since only the basics are fulfilled by members looking to just finish the assigned tasks.
Drive members to come up with their own actions that go along with the plan so they can add investments with their own personal touch to the project.
Confusion of Assigned Actions
When looking at an end goal, many actions emerge in order to make that a reality. When tasks are assigned to the group, confusion can become a problem because one team member thinks the other is going to deliver the action and vice versa.
When assigning actions, make sure each is assigned to specific members and if there are multiple people for each action, have them name who will deliver on each part of the action.
Lack Of Commitment To The Team
No initiative stems from a lack of commitment to the team. When teams are formed from different departments or around certain projects, members could be disenfranchised. The may considering it to be just something else that takes time away in their day. This lack of commitment undermines the team’s ability to complete their objectives.
Find a common thread in the group. This could be by reminding everyone that the company’s success is paramount above all else or exciting people on the project at hand.
Culture Of Limited Accountability
Some teams don’t follow up previous discussions with accountability. This can set the wrong standard for acceptance by the team. If a team member did not complete an assigned task and that task was not talked about, they might assume it isn’t worthwhile and divert their attention elsewhere.
Keep everyone accountable by following up on what was discussed at the previous meeting by instilling the attitude that everyone is accountable to everyone else.
Just Discussion, No Action
Discussion is key to moving towards goals, but too much discussion can render the team ineffective with far too many options than can actually be followed through. This results in the discussion running in circles, conversing on possibilities instead of moving into action.
When you find yourself talking more than acting, take a step back and realign the discussion to include what specific actions must be taken in order to reach the end goal.
If you or your company is looking to implement greater responsibility and accountability measures within your team and company, contact ASIL to discuss a consultation.
Contributed by Joe Pazmany
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Our Software Products
Click on the links below to view ASIL, Inc.'s MAX Partnering® self-paced software demonstrations:
Strategies and Execution - This demo depicts the tools that organizations can utilize to embrace change effectively and implement it successfully.
Self Assessment Sample Questionnaire - This demo will enable you to respond to a small sample of self assessment questions focused on change management and create a Heat Map of your responses to see areas that may need attention. The Driving Complex Change® methodology addresses the six areas of Direction, Ability, Incentive, Resources, Structure, and Action that can impact your effectiveness of change management.
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Editor: Michael B. Singleton (msingleton@asil-inc.colm)
