RLMagazine Edition 53

Using Specialized Software for
Profitable Reverse Logistics

page 18
Reverse Logistics vs. Green

Logistics: Is there a difference?
page 22
Afghanistan Withdrawal:
Equipment Retrograde
- pg 12
Edition 53
Understanding Customers
Return Behaviour to Create
Value
page 32
10th Annual
RLA Conference & Expo Singapore

Novotel Clarke Quay September 24-26, 2013
Early Bird Pricing of $99 Ends

July 31, 2013
Laredo, TX
Asias premiere Reverse Logistics Event will bring three full days
of Reverse Logistics. Starting on Monday, September 24, with RLA
Workshops and continuing on Tuesday and Wednesday with sessions
and exhibition.
A wide range of leading regional and global Reverse Logistics
companies are in attendance from repair/refurbishing to recycling/ewaste and transportation logistics.
Be sure to visit the Exhibition Hall where ODMs and OEMs will be
looking for Third Party Service Providers (3PSPs) that can manage
Reverse Logistics in the Far East, along with identifying solutions
for Europe and the Americas. There will be many exhibitors
showcasing their Reverse Logistics services and solutions.This is
a rich opportunity for OEMs
and Branded companies
SINGAPORE
to
identify
future
service partners.
Start Planning Now for October 2013

RLA is proud to present a seminar in Laredo, TX
Learn about strategic programs that meet corporate goals and address todays most
important economic and social issues while networking with business innovators.
The seminar will address the most important issues in RL and Social Responsibility:
Join us for a full day of exciting new workshops that will highlight Corporate Social
Responsibility, Corporate Giving and Brand Protection programs. Attendees will learn
about strategic programs that meet corporate goals and address todays most important economic and social issues while networking with business innovators.
Facility Tour:
RACING
networking
event
Facility Tour Sponsored By:
Workshops October 28th
Renewable Energy - all support functions

for Wind & Solar (repair, reuse & upgrades)
Collection of Reusable materials for energy
development
Developing Green politics to lower
energy consumption
Branding when using Green solutions
Developing Green Public Relations while
supporting Corporate Social Responsibility
Protection of Corporate Image & Branding
when employing Corporate Giving
Laredo, TX October 29th
Facility Tour: Sony and Caterpillar
Join us for this opportunity

to learn how to Be Green
If you are a Reverse Logistics professional dont miss this event!

For more information and complete details, visit www.RLAShows.com. Attendees may register online for
Workshops and the Conference and even book flights and hotel. Exhibitor space is available for purchase as well.
Issue 7 Volume 8
On the Cover
Articles
Using Specialized Software for Profitable
Reverse Logistics
Page 18
Reverse Logistics vs. Green Logistics: Is

there a difference?
Afghanistan Withdrawal:
Equipment Retrograde
Page 22
by Spc. Jovi Prevot, Public

Affairs Specialist, Mississippi
Army National Guard
Understanding the similarities and differences

between reverse logistics and green logistics helps
identify optimal solutions to achieve a balanced
approach developing strategies to maximizing benefits
throughout an organization.
In the history of the U.S.

military there has never
been a requirement to
retrograde as much
equipment in as short
a period of time as
there
was
during
Operation New Dawn,
when American forces
withdrew from Iraq.
Feature Articles
Technical Trends
by L. Bryant Underwood
The Repair Opportunity Half-Life
Page 37
Page 39
Reverse Logistics Digital Magazine
by Jennifer Bilodeau, Independent Author
Returning Thoughts
by Paul Rupnow
Case Study: Jarden Shares the Benefits of
Re-manufacturing
Digital Edition 53
www.RLmagazine.com
is Available on These Devices:
Non-qualified rates are as

follows:
Working to Your
Strengths
page 20
One Year Subscriptions:

Global: $5.00
RLA Conf & Expo:

Las Vegas Program
pg 23
Supplementing the Reverse Supply

Chain One Board at a Time
page 40
Leading Dells Global

Reverse Logistics
Team, Doug Schmitt &
Tom Maher,
Transformation
- pg 12
iPad
by Larry Laux, Senior Vice President, IFS North

America
Over the last 30 years, enterprise software has emerged

as a powerful force for profitability assurance in
business.
Page 12
Go to RLmagazine.com.
Individual subscriptions are
available without charge to
qualified individuals.
RL Magazine
Reverse Logistics
Magazine welcomes
articles and abstracts.
Please send to:
editor@RLmagazine.com
Edition 47
To unsubscribe email:
Publisher - Gailen Vick
Editor - Laura Nixon
News Media - Laura Nixon
Technical Director - Matt Gwilliam
Doug Pratt - Director of Education
Felecia Przybyla - Speaker Co-ordinator
Board of Advisors
John Benardino - Comcast Cables
David OLeary - UPS
Jose Garcia - Motorola
Edwin Heslinga - Microsoft
Charles Johnston - Home Depot
Hartmut Liebel - Jabil Global Services
Troy Kubat - Walmart
Thomas Maher - Dell
Ian Rusher - Cisco Systems
Dale Rogers - Rutgers University
Tony Sciarrotta - Reverse It Sales & Consulting
Ian Towell - Tesco
Susan Wackerman - Hewlett-Packard
For more information on the Board of Advisors,
go to RLA.org
Editorial and Circulation Office
441 W. Main Suite D
Lehi, UT 84043-2024
Phone: 801-331-8949
Fax: 801-206-0090
www.RLmagazine.com
BPA Worldwide Membership May 2010. Printed
in the U.S.A.
ISSUE 7
VOLUME 8
REVERSE LOGISTICS MAGAZINE (ISSN
1934-3698) is published monthly for $5.00/per
year by Reverse Logistics Association.
iTunes In-App Purchase: $4.99
Amazon Kindle Monthly Subscription $1.49
Edition 53 published July 2013.
The information presented in this publication
has been provided by corporations and is
believed to be accurate; the publisher cannot
assure its completeness or accuracy.
www.RLmagazine.com
iPhone
Android
Kindle
RL Magazine will publish 12 issues

annually 12 new digital editions!
Articles
Understanding Customers Return

Behaviour to Create Value
by Ellie Turner, Business Development Manager, Clear
Returns
Page 32
Clear Returns, returns intelligence specialists, share their

research into consumer shopping and returns behaviour
conducted with UK fashion retailers, highlighting the key
concerns for retailers.
Video
What is the Reverse Logistics Association?
by Reverse Logistics Association
Page 21
Features
Industry Jobs
23
Message from the Publisher 8
Money Talks
33
Advisory Board
Read the Press
35
Industry Committees
10
Technical Trends
Industry Events
13
Focus Committees
Regional Chapters
17
Message from the Editor
37
Returning Thoughts
39
Advertiser Index
41
Digital Edition 53
Mobile Marketing
Marketing is one of the most important things you can do as a business owner. A marketing
strategy and targeted advertising audience are essential tools in the success of any business.
In todays busy world, businesses both large and small are finding more and more challenges
when it comes to traditional marketing strategies. The traditional strategies such as paying for
an ad in a local publication or the yellow pages do not produce the results they used to. These
can also be quite expensive when compared to other up to date advertising campaigns.
The reason why this is happening is that we are in a rapid changing communication age.
With the number of internet-ready cellphones expanding globally, the effects on marketing
are tremendous and are taking the marketing challenges to a new level. This applies to both national and international
businesses alike.
There are several technical requirements associated with completing a
successful marketing program. These can include setting up a website,
understanding social media, creating specific campaigns to promote the brand,
and the ability to convert this foot traffic into buyers. This in itself can be
a daunting and time-consuming task. The problem is many business owners
need to focus on actually running the business and do not have the time or the
skillset required to create and manage an effective marketing program.
Canada's only event

for the entire home
delivery chain
September 16-17, 2013, Toronto, Canada
Join us to gain industry intelligence, network with supply chain, logistics, and
retail decision makers and form new business relationships.
Confirmed speakers include:
Mobile text marketing is a new marketing method that already has a

tremendous impact on businesses. This type of marketing is unique in that it
provides an opportunity to connect with consumers on a personal level. There
is such great potential for a higher response rate in comparison to email. This reason alone should be enough for business
owners to realize the importance of incorporating this into the overall marketing strategy.
There are several reasons for the high response rate in mobile text marketing. Consumers
are attached to their mobile devices. When a text message is received, they almost never
ignore it due to the alert features. There is also less of a chance for these messages to be
lost or ignored among others. This tends to happen quite often with emails. The messages
tend to be short and to the point. Internet access is not required to receive a text message
and most users always have their cell phone readily available.
Bryan Tremblay
Vice President,
Supply Chain & Logistics
The Source Canada
By sending a text message, you know it will be read and this in turn can increase business.
With a cell phone in hand, the promotion is received. The least amount of effort has been
exerted yet this can hold the greatest response. The upside to this marketing strategy is that
its not just limited to one type of business.
ur mission is to educate
and inform Reverse
Logistics professionals
around the world. RLA
focuses on the reverse logistics
processes across all industries.
No matter the industry High
Tech, Consumer Electronics,
Automotive,
Medical/
Pharmaceutical, Food and
Beverage, Apparel, or other
our goal is to provide
RL process knowledge to all
industries. We want to educate
everyone about the Reverse
Logistics processes that are
common to all industries and to
be a catalyst for innovation in

developing and implementing
new RL processes. We have
been and will continue to
provide our services to the
industry at a moderate price.
anaging the latest

information
in
services such as
repair,
customer
service,
parts management, end-oflife manufacturing, service
logistics, field service, returns
processing and order fulfillment
(just to name a few) can be
a little intimidating, to say
Ethan Song
Chief Executive Officer
Frank & Oak
Register now to secure your place.

the least. Yet that is exactly
what the Reverse Logistics
Association provides through
our membership services.
We serve manufacturers and
retailers in a variety of settings
while offering ongoing updates
on market trends, research,
mergers
and
acquisitions
and potential outsourcing
opportunities to 3PSPs. We have
gained the attention of 3PLs like
FedEx, DHL, USPS and UPS.
3PSPs like Teleplan, Foxconn,
Flextronics, Canon, Sony
and Jabil, along with smalland medium-sized service
providers have found that

RLA resources help advertise
their services to a regional and
global audience. OEMs like
Microsoft, HP, RIM, and Sony,
along with Retailers like WalMart, Canadian Tire, Tesco and
Best Buy all participate at our
events. Through RLA Events,
RLA Connect services and our
publications RL Magazine
and the Weekly News Clippings
email we help OEMs, ODMs,
Branded and Retail companies
find service partners and
solutions providers that were
previously unknown to them.
Enter promotion code: RLA1 to receive special

offer price for Reverse Logistics Magazine readers.
Scan this QR pattern with the camera on your
smartphone to register at the special offer price.
Don't have a smartphone? You can also register and
get the offer on our website:
www.terrapinn.com/RLHCregister - quote voucher
code RLA1.
2013
sponsor
OUR MISSION
Laura Nixon, Editor Editor@RLA.org
Kristy Wieber
Co-founder and President
Rent frock Repeat
www.terrapinn.com/RLHChome
Reverse Logistics association
Reverse Logistics association
Message from the Publisher

Cross Border Trade
Everyday countries work out their differences to find ways to increase
trade. A few years ago, I was surprised to find that the United States
number one trading partners were Mexico, with Canada number two.
I should have realized
that, your neighbor
should and will most
likely be your be friend and trading partner.
This month we see in edition 53 of RL
Magazine several relationships that have
formed out of friendships. And that is why
I look forward to the seminar that will be
held in Laredo, Texas in late October.
Everyone will have a chance to see the activity of one
of the major trading ports while getting a chance to
see first-hand the largest Remanufacturing facility
of Caterpillar and the repair facility of Sony. Both
are first class in every way and that by attending
our event, you will get to hear how these operations
recover millions of dollars of assets that others
might throw away. Be prepared to learn some new
and exciting ways of controlling your operational
cost.
Best Regards,
Gailen Vick, Founder & Publisher
www.RLA.org
Board of Advisors
A Board of Advisors comprised of industry experts has been set up to monitor and assist the Reverse
Logistics Association management team in making informed decisions. Advisors include:
John Benardino - Comcast
John Benardino has 19+ years
of multinational supply chain
management. Moved production
and call centers overseas,
implemented new planning and
procurement systems, transformed
outbound deliveries, shifted terms
and conditions around returns/support, and direct
management of third party manufacturing. 12+
years of experience managing first and second level
managers, setting objectives, balancing workloads
and managing performance. Over fourteen years
of customer facing experience. Channel partners
(Distributors, Consumer Electronics, Mass Merchant,
Office Product Super Stores, and Clubs), Enterprise,
and end consumer customers. Includes account
programs, forecasting and enabling product
placement tradeoffs. Over eight years of experience
managing a profit and loss statement. Strong
understanding of marketing/distribution channels
within retail, enterprise and commercial. 8+ years
of low mix/ low margin computing, 2+ years of high
mix/ high margin test and measurement, 4+ years
of service revenue, and 9+ years of annuity based
product.
David OLeary - UPS David
OLeary brings over 22 years of
management experience through
several key roles in Sales, Finance
and Operations positions that he
has held during his career at UPS.
As Vice-President, Global Post
Sales and Reverse Logistics, David
is responsible for the US and Canada operations
while having strategic oversight for the product
globally. Prior to taking on this role David was VicePresident of High Tech Sales. In this role, David was
responsible for managing a group of High Tech sales
executives who support internal and external sales
cycles focused on UPS distribution and service part
logistics products.
of products around the globe through a regimen of

milestone gates and sign offs.
Edwin Heslinga Microsoft,
Edwin is currently Director of
Reverse Logistics Programs and
Policies for Microsoft Devices. In
his position Edwin is responsible
for development and enforcement
of policies surrounding returns
and all related costs to the
returns and is also involved in the Customer
Satisfaction Continuous Improvement Council.
Working with Microsoft Call Center and the
Microsoft Manufacturing Operations Edwin is driving
the improvement of consumer satisfaction through
agent assisted support and on-line support while
managing the costs.
Prior to working for Microsoft, Edwin worked for Jabil
Global Services as the Director of IT Solutions, where
he worked with various teams on the proposal and
implementation of reversed logistics services for various companies at the Jabil factories around the world.
Distribution.
Charles Johnston Home

Depot, Charles Johnston is
Director of Repair and Returns
at The Home Depot Chuck was
with WAL-MART for the past
14 years and his responsibilities
include Returns, Imports, Exports,
Tires and Printing and Mailing
Hartmut Liebel Jabil
Global Services, Hartmut
Liebel was named President, Jabil
Global Services (JGS), in October
2004. He joined Jabil as Executive
Vice President in July 2002 and
was named Chief Operating
Officer in October 2003.
David began his career with UPS through the

acquisition of Livingston Inc. in October 2000. Just
prior to the acquisition, David had moved into a
Service Parts Logistics (SPL) operations role and
assumed more senior operational responsibilities
within SPL at UPS. Prior to moving to operations,
David spent four years with Livingston in various
financial roles. His last financial assignment was
Controller of Livingston, Inc.
Troy Kubat - Walmart, Troy

is now the Director of Logistics
Engineering-Grocery at Walmart
having worked is way up from
Director, Logistics Operations,
Industrial Engineering Manager at
Walmart - International Division
and Japan Expatriate - Logistics
Operations Lead at Walmart - International Division
David has a Bachelor of Commerce degree from the

University of Toronto. In addition, he obtained his
Chartered Accountancy (CA) designation in 1992
during his apprenticeship with Price Waterhouse.
David worked for Price Waterhouse for five years
performing roles in audit, tax and insolvency groups.
David spent one year at Coco-Cola as a Finance
Manager prior to joining Livingston.
A strong Logistics professional with a deep understanding of the Retail operation and market place. Extensive
Distribution Center (DC)/Transportation operations
experience and vast International Logistics operations
experience focusing on growth, integrations, strategic
planning, innovation, and process improvements.
Jose Garcia - Motorola, Jose

Garcia joined Motorola as the
Director of Reverse Logistics in
September, 2012. Jose has been in
the Consumer Electronics Industry
for over 25 years holding leadership positions in Reverse Logistics,
Repair, Refurbishing, Technical
Support Engineering Groups, Training Departments,
and After Sales Support Policy. The last few years
gave Jose the privilege to lead high volume Software
Manufacturing and Games Operations for Microsoft as
well as a Global program team that launched hundreds
Thomas Maher - Dell, Tom

Maher joined Dell in 1997 and is
the Executive Director for Global
Service Parts. Mr. Maher is responsible for service parts life cycle
support in over 100 countries. Mr.
Mahers global service parts responsibilities include: planning, procurement, distribution, returns, repair, inventory management, supplier management and parts disposal. These
operations support 100% of Dells warranty customers
across all Business Units and all Product Lines.
Ian Rusher - Cisco Systems,

20 Years within Supply Chain
Operations, of which the last 15
Years have been spent in reverse
Logistics. Previous experience
running 3Com EMEA Warranty/
Service Repair Operations,
Responsible for both Internal
and 3rd party repair operational performance and
Engineering support. Moved the operations from
a predominantly In-House business to a total
outsourced operational model. Last 3 Years at Cisco
within Supply Chain Field Operations, setting up
the EMEA non Service returns and Cost Avoidance
Operations within the Netherlands. Responsible
direct for EMEA Freight and Warehouse Operations.
During the last 2 years has successfully set up
Operational infrastructure to support the Teams
Global Revenue targets.
Dale
RogersRutgers
University, Dale Rogers is the
Foundation Professor of Logistics
and Supply Chain Management
and the Director of the Center
for Logistics Management at the
University of Nevada. He is also the
chairman of the Reverse Logistics
Executive Council (www.rlec.org), a professional organization devoted to the improvement of reverse
logistics practices. He is the leader of the sustainable
supply chain research project currently underway at the
University of Nevada. (www.sustainable-supplychain.
com) Dr. Rogers is the former cochairman of the RFID
Users Group, an organization researching the utilization RFID technologies in the supply chain. In 2001,
he was the Paper Foundation Visiting Eminent Scholar
Chair of Logistics at the University of North Florida.
Tony Sciarrotta Reverse
It Sales & Consulting, Tony
Sciarrotta has held a variety of
sales and marketing positions
in the consumer electronics
industry for over 30+ years,
including the last 25 years at
Philips Consumer Lifestyle. His
background prepared him in this developmental role
as director for returns management activities, and he
was responsible for implementing effective returns
policies and procedures with a variety of dealers.
Ian Towell Tesco,
Responsible for end to end
accountability for the non food
returns business within UK Tesco,
focussing on improving quality,
policy application, asset recovery
and logistical flow.
Susan Wackerman
Hewlett-Packard Company,
Susan Wackerman is currently a
Sr. Operations Manager in the
Americas Supply Chain for HPs
Imaging and Printing Group. In her
position, Susan is responsible for
the Recycling Operations for HP
Americas and the Returns Operations / Remarketing
for HP Americas Imaging and Printing Group. This
includes supply chain development, reverse logistics,
disposition and processing, refurbishment, resale,
channel management. For Recycling Operations
her product responsibilities cover all HP product
categories including inkjet and laser printing, digital
imaging, supplies, scanners, shared printing, PCs,
notebooks, desktops, servers.
Complete biographies of Advisory Board Members are available from the RLA site at: www.ReverseLogisticsAssociation.org/company_advisory.php
Reverse Logistics Association Industry Committees

Reverse Logistics Assoc.
Craig Plowden, Revlogs
(Pty) Ltd
Industry Committees
are set up to provide
a standing forum for
Reverse Logistics
Professionals to
meet on a regional
and global basis and
discuss common
Reverse Logistics
issues at the RLA
Conferences &
Expos. Industry
Committees
educate the industry
on reverse logistics:
Best Practices
Consumer
Satisfaction
Issues
Regulations on
a Worldwide &
Regional Basis
Processes that
can Reduce
Costs
Apparel
Chairperson: Gailen Vick,
Automotive
Chairperson: Gailen Vick,
Reverse Logistics Assoc.
Michael Blumberg,
Blumberg Advisory Group,
Inc.
Charles Chappell, Genco
ATC
(Pty) Ltd
Aviation
Chairperson: Steve Wallace,
COMPUMAR
Sandra Walls, AVPOL
International LLC DBA AIL
Consumer Electronics
Chairperson: Paul Baum,
PlanITROI
Co-Chairperson: Kathy
Murphy, Jarden Consumer
Solutions
Ray Agarpo, HP
Patrick Blinn, Microsoft
Michael Blumberg,
Inc.
Brianne Boettner, Best Buy
Charles Chappell, Genco
ATC
Shoaib Chaudhary, Spruce
IT Asset Recovery
Jack Debutts, Dell, Inc.
Charles Dunton, Genco
Steven Fulghum, U.S.
Cellular
Christopher Galletto,
OfficeMax
Elaine Gasser, HP
Cintia Gates, Dell Inc
Chris Griffin, Sprint Nextel
Edward Higgins,
MasterWorks International
Inc.
Sam Jackson, Target
Patrick Joseph,
Encompass
Brad Larsen, Hewlett
Packard
David Liscom, Hyper
MIcrosystems Inc.
Lynda Lopez, Nook Media
Stephen Martyn, Invata
Intralogistics
Dave Moloney, Google
Anthony Montagano,
OfficeMax
Jason Oneill, UPS Supply
Chain Solutions
Jonathan Pine, Renova
Technology
(Pty) Ltd
Mark Prol, Inmar
Tim Quinn, BJs Wholesale
Club
Jim Rushton, Encompass
Craig Sultan, Home Depot
Direct
Chris Tejeda, Inmar
Brian Vowels, UPS
Data Storage
Chairperson: Tom Burnam,
Western Digital
Co-Chairperson: David
Liscom, Hyper MIcrosystems
Inc.
Co-Chairperson: Alan Clark,
Seagate Technologies
Michael Blumberg,
Inc.
Karen Fedder, Blancco
US, LLC
Gary Gear, Toshiba
Glenn Grube, ModusLink
Rachel North, Toshiba
America Electronic
Components, INC.
Jose Luis Villalvazo, HP
Food and Beverage
(Unsaleables)
Coordinator: Brock Anderson,
Reverse Logistics Association

Dawn Bland, Inmar
Michael Blumberg,
Inc.
Gene Bodenheimer,
GENCO
Pat Coats, Kellogg
Company
Dr. Oliver Hedgepeth,
American Public Univ.
Jodie Holliday, UNLV
Thomas Marcellino, Inmar
Life Sciences
Michael Blumberg,
Inc.
Dan Gardner, ATC
Logistics & Electronics
Retailers
Co-Chairperson: Raul Castilla,

Wal-Mart Stores, Inc.
Coordinator: Rachelle
Hetterson, Defense
Ammunition Center
Randy Compas, Canadian
Tire Corporation
Christopher Galletto,
Officemax
Summer Irvin, Overstock.
com
Sam Jackson, Target
Andrea Newman, Best Buy
Anthony Pereira, Barnes &
Noble
(Pty) Ltd
Terry Power, Canadian
Tire Corp. Ltd.
Craig Sultan, Home Depot
Direct
Small Appliances
Chairperson: Kathy Murphy,
Jarden Consumer Solutions
Michael Blumberg,
Inc.
Telecommunications
Chairperson: Gary Cullen,
4PRL LLC
Michael Blumberg,
Inc.
Intralogistics
(Pty) Ltd
Glen West, Celestica, Inc.
Wireless
Chairperson: Douglas Zody,
Apple
Co-Chairperson: Blake
Vaughn, Brightpoint
Co-Chairperson: Joe Walden,
University of Kansas
Michael Blumberg,
Inc.
Peter Carfrae, GENCO
Mark Delong, Arvato
Services
Chris Griffin, Sprint Nextel
Scott Hertel, UPS
Edward Higgins,
MasterWorks International
Inc.
Bill Kenney, OnProcess
Technology Inc
Regan Pasko, TESSCO
Technologies, Inc.
Joseph Tarantino, Sprint
Sandra Walls, AVPOL
Larry Worden, Celestica
Join today at
www.RLA.org
Focus Committees & Regional
Focus continued on to page 17
Cover Article
support the surface movement

of DOD equipment and
supplies 24 hours a day, 365
days a year.
Eight representatives of the
Army Materiel Command held
a briefing to discuss retrograde
and reset operations in Zabul
province, Feb. 8, at Forward
Operating
Base Apache,
Afghanistan.
Afghanistan Withdrawal: Equipment Retrograde

by Spc. Jovi Prevot, Public Affairs Specialist, Mississippi Army National Guard
In the history of the U.S.

military there has never been
a requirement to retrograde
as much equipment in as
short a period of time as there
was during Operation New
Dawn, when American forces
withdrew from Iraq.
In order to accomplish the
mission, and with all the new
systems being used to transport
and track equipment, it was
necessary to learn new skill sets
and combine them in a logical,
effective combination as part
of Redistribution Property
12
Assistance Teams, or RPATs, executing the surface delivery

which are teams formed to of their equipment and supplies.
relieve units of equipment.
SDDC is the Department of
Defenses (DOD) manager
The
Military
Surface for all aspects of surface
Deployment and Distribution movement, from planning,
Command, or SDDC, is a booking and shipping, to
unique U.S. Army command tracking cargo, conducting port
that delivers world-class, operations anywhere in the
world, and managing personal
origin-to-destination
property moves for military
distribution solutions.
personnel, federal employees,
and their families. Although
Whenever
and
wherever headquartered in the Midwest
Soldiers, Sailors, Airmen, United States, five brigades,
Marines and Coast Guardsmen dozens of battalions and
are deployed, SDDC is detachments and thousands
involved in planning and of personnel across the globe
Digital Edition 53
www.RLmagazine.com
We have retrograded more in

the last six months than during
the whole time we have been
in theater, said U.S. Army 1st
Lt. Douglas Windell, officerin-charge, Mobile Retrograde
Property
Accountability
Team, 401st Army Field
Support Battalion. Retrograde
operations. The term for the
removal of equipment, are
continuing to grow, he added.
Army
Materiel
Command is the
governing body for
all logistics in the
Army. It oversees
purchasing,
selling, outfitting,
decommissioning,
shipping
and
receiving virtually
all
equipment
within the U.S.
Armys arsenal. The
men and women
who work for the
AMC are known as
logisticians.
The role of the Army
logistician has made
a complete reversal
in the past year,
shifting from supplying the
war fighter to retrograding
all excess equipment within
the Afghanistan theater of
operations.
Despite full support and the
assets, the United States
government is dedicated to
Industry Events
RLA@ Home Delivery World 2013

September 16-17, 2013
Conf & Expo: Singapore 2013

September 24-26, 2013
RLA@ CES 2014

January 7-10, 2014
Workshops: Toronto 2013

September 18, 2013
Workshops: Laredo 2013

October 28, 2013
Workshops: Las Vegas 2014

February 10, 2014
Workshops: Singapore 2013

September 24, 2013
Seminar: Laredo 2013

October 29, 2013
Conf & Expo: Las Vegas 2014

February 10-13, 2014
withdrawing equipment
and
troops
from
Afghanistan, there are
no shortage of skeptics.
Skeptics of the logistics,
the timeline and of the
withdrawal in general are
constantly emerging.
A large reason for
skepticism is the sheer
amount of equipment to
recover.
The eight logisticians
attending the meeting,
however, all agree that
those concerns were not
well-rooted.
Bluman, systems acquisitions

officer of the 401st Army
Field Support Brigade, assured
members of the briefing that
currently the math adds up.
There is a vast amount of
equipment to retrieve and
only so much time in which
to retrieve it, but the AMC is
meeting those goals.
U.S. Army Maj. Jeff E.

Gornowicz, Brigade Logistic
Support Team, 1st Armored
Brigade Combat Team, Third
Infantry Division, defended
the deadline of retrograde by
saying its going to happen and
probably with an accelerated
The
recent
withdrawal
timeline.
from Iraq left the AMC
better equipped for current
They will meet the deadline, and
future
retrograding
he said, the only question left operations.Gornowicz said
is how.
that even though the situation
in Iraq was different than
There are many avenues of the situation in Afghanistan,
learned
during
extraction because prospects lessons
are narrowing due to many retrograde operations in Iraq
factors; air transportation is can and have been implemented
most commonly used as of in Afghanistan.
now.
R e tr ogr ade
U.S. Army Maj. James E.
14
Digital Edition 53
What is it?Retrograde is the

movement of equipment and
materiel from a deployed
theater to a Reset program
(replace,
recapitalize,
or
repair) or another theater of
operations in order to replenish
units or stock requirements.
Equipment is redistributed
in accordance with theater
priorities to fill mission
requirements within the Area
of Responsibility (AOR) and
Department of Defense (DoD)
requirements. Army Materiel
Command (AMC) is the
Armys Executive Agent for
retrograde.
What has
done?
the
Ar my
The Army G-4 has published

messages tailored to each theater
for the retrograde of materiel
and equipment including:
www.RLmagazine.com
Army Central Command

(ARCENT), United States
Army Europe (USAREUR),
and Eighth United States
Army (EUSA) AORs. The
policy requires commands
that have identified equipment
or materiel excess within
their theater to coordinate
with local AMC elements
to assist with retrograde and
retrograde reporting. End-toend models of USAREUR and
ARCENT AORs have been
developed. The Army G-4 has
developed a Retrograde Task
Force (TF) that provides a
forum in which the retrograde
stakeholder
community
identifies, discusses, and
develops solutions to issues/
obstacles affecting retrograde

operations. There are key
representatives from Army
G-3, G-4, G-8, USAREUR,
EUSA, ARCENT, Logistics
Support Activity, United
States Central Command,
Defense Logistics Agency,
United States Transportation
Command,
Multi-National
ForceIraq, Multi-National
Corps-Iraq,
and
AMC.
Additionally,
the
Army
has identified performance
standards for secondary item
materiel returns.
The Retrograde TF is leading

the retrograde indicator team
for the Army G-4s 360 Degree
Logistics Readiness initiative.
The end-state of this prototype
tool is to develop end-toend visibility throughout
the reverse pipeline with
quantifiable metrics for air
and surface movement of
materiel. The team completed
a lean six sigma project
that analyzed the retrograde
process for major end items
to identify deficiencies in the
reverse pipeline with the goal
of optimizing movement of
What continued effo rts equipment to a Reset program
does Ar my have planned or to replenish units or stock
requirements.
fo r the futu r e?
PRODUCT LIFE CYCLE

Supply Chain
AfterMarket Supply Chain
FORWARD LOGISTICS
New Product
Development
Design
Development
Technology
Roadmaps
ASIC
Development
Mechanical
Design
PCB Layout
Prototyping
New Product
Introduction
Material
Management
Manufacturing &
Distribution
Vendor
Relations
Planning
Procurement
Inventory
Planning
Component
Fabrication
PCB Assembly
Box Assembly
Volume
Manufacturing
Integration
Configuration
Final Testing
Distribution to
Customer
Customer
Fulfilment
Transportation
E
N
D
U
S
E
R
R
E
T
A
I
L
E
R
S
R
E
S
E
L
L
E
R
S
REVERSE LOGISTICS
AfterMarket Customer Service
Customer Service (HelpDesk)
Depot Repair/Remanufacturing
Service Logistics
Field Service
Transportation Warehousing
Spare Parts Management
RMA Management
Replacement Management
End-of-Life Manufacturing
Remanufacturing
Fulfilment Service
IT Process Management
Recycling/Scrap Mgr.
Refurbishment / Screening
Warranty Management
B Channel Management
Asset Management
Environmental Resources
Sustainability
The Army G-4 established

control
measures
for
transportation
priority-4
movement for AMC-controlled
Reset, and retrograde of
clothing and textiles, major
end items, and repair parts
cargo from Southwest Asia
(SWA) to Army depots in the
U.S. This initiative decreased
the shipment wait time for
selected low-density, highdemand items and increased
the speed that equipment gets
to depots in the U.S. to better
support Reset and retrograde.
Since January 1, 2008, more
than 5,200 short tons of Reset
and retrograde major end
items and repairs parts have
been transported to the U.S.,
resulting in savings of more
than $2.3 Million in surface

transportation charges, while
reducing shipment time by 48
days.
provides a means to return

equipment and materiel to the
DoD inventory and for units to
Reset the force in accordance
with the Dynamic Army
Since 2005, more than 40,192 Resourcing Priority List. RLM
pieces of retrograded major end
Sgt.
Jovi
items (rolling-stock) have been
Prevot is a
shipped from SWA, EUSA, and
Public Affairs
USAREUR in support of Army
Specialist with
Force Generation operations.
the Mississippi
The AMC continues to meet
Army National
production requirements for
Guard.
He
essential replenishment of
studied Social Science at
equipment.
William Carey University and
graduated in 2012.
W h y is this important
t o t he Ar my?
The
retrograde
process
What makes
us great.
UNITY
Reverse Logistics Association

Focus Committees
FOCUS COMMITTEES
CORPORATE SOCIAL
RESPONSIBILITY
Chairperson: Brian Eddy, SubCon
Industries
Michael Blumberg, Blumberg
Advisory Group, Inc.
EXTENDED WARRANTIES
Co-Chairperson: Scott Delaney, Avnet
Integrated
Charles Chappell, Genco ATC
Hitendra Chaturvedi, RLC
Mohan Kumar D, HP
Edwin Heslinga, Microsoft
Mike Neilon, ShopJimmy.com
Regan Pasko, TESSCO
Technologies, Inc.
Craig Plowden, Revlogs (Pty) Ltd
RL CERTIFICATION
Chairperson: Doug Pratt, RLA
Co-Chairperson: David Giese, Dell,
Inc
Coordinator: YE ZHAO, East Carolina
University
Noah Arvidson, US Cellular
Haozhe Chen, East Carolina
University
Elaine Gasser, HP
David Patton, American Public
University
SOFTWARE SOLUTIONS
Chairperson: Leonard Schneeman,
DEX Systems
Co-Chairperson: Paul Rupnow, Andlor
Logistics Systems Inc
Haozhe Chen, East Carolina
University
Roger Levi, Intel Corporation
Intralogistics
Ray Miller, CSDP
Lee Sacco, Oracle
David Sandrowitz, Optoro
Leonard Schneeman, DEX
Seshagiri Singaraju, Sun
Microsystems
Sheryl Skifstad, Motorola
SPARE PARTS MANAGEMENT

Mohan Kumar D, HP
Dan Gardner, ATC Logistics &
Electronics
Joe Giglio, Fidelitone Logistics
Edward Higgins, MasterWorks
International Inc.
Patrick Joseph, Encompass
Regan Pasko, TESSCO
Technologies, Inc.
Jesus Sales, Juniper Networks
Derek Scott, Canon Europa N.V.
Jose Luis Villalvazo, HP
Sandra Walls, AVPOL
John Weatherup, Hewlett Packard
Alan Wheatley, MasterWorks
International
Darren Woodvine, Ericsson
STANDARDS
Chairperson: Ron Lembke, University
of Nevada
Co-Chairperson: Ken Jacobsen,
Connexus
Beth Foster, United States Postal
Service
Tommy Rector, American Public
University
SUSTAINABILITY AND
ENVIRONMENTAL MANAGEMENT
Co-Chairperson: Raymond Glynn,
Arrow Value Recovery
Co-Chairperson: Paul Gettings,
Network Global Logistics
Jose Garcia, Motorola
Cintia Gates, Dell Inc
Robert German, Rochester
Institute of Technology
Jean-franois Rioux, Le Sextant
inc.
Renee St. Denis, Hewlett Packard
Kenneth Turner, HP
Joe Walden, University of Kansas
REGIONAL CHAPTERS
AFRICA
Chairperson: Craig Plowden, Revlogs
(Pty) Ltd
APAC
Co-Chairperson: Balachandar
Subramaniam, Ericsson
Co-Chairperson: Haozhe Chen, East
Carolina University
Coordinator: YE ZHAO, East Carolina
University
Victor Chu, UPS
Kenichi Kato, Katotech
Alice Koo Boon Ken, Ericsson
Brian Noone, Infinet Service
Solutions Pty Ltd
Ashok Parasuram, USPS
Ian Rusher, Cisco Systems.
Yogesh Sarin, Dell India Pvt Ltd
BRASIL
Chairperson: Felipe Ortiz, Grupo Po
de Acar
Co-Chairperson: Melissa Silva, Brazil
Postal Service
Coordinator: Raphael Lima Siqueira,
FATEC
Coordinator: Giovana Salvatore,
Fatec
Djalma Barbosa, Dell Inc
Marco Antonio Bendin, Correios
Sofia Bianchi, Cranfield University
Orlando Cattini Junior, EAESPFGV
Paulo Gomes, Flextronics Global
Services
Franklin Jimenez, Jabil
Marcus Karten, Arvato Services
Luciana Lacerda, HP
Ricardo Magioni, Dell
Osvaldo Nobuo, UPS
Paulo Sader, Microsoft
Marcio Silva, Philips
EUROPE
Co-Chairperson: Derek Scott, Canon
Europa N.V.
Co-Chairperson: Charlie O
Shaughnessy, Intel
Eduard Falkenreck, Celestica
Faz Hussain, UPS
Marcus Karten, Arvato Services
Chris Leigh-Browne, Arvato
Dave Moloney, Google
Ian Rusher, Cisco Systems.
Andy Smith, Celestica
Larry Worden, Celestica
LATIN AMERICA
Guillermo Fernndez Dejuregui,
ONILOG
NORTH AMERICA
Chairperson: Tony Sciarrotta, Reverse
It Sales & Consulting
article
problem. If they have

a multi-layered service
operation, they will do
an initial check right
at the retail site to see
if they can make a
diagnosis and a simple
fix. But if they are
not able to resolve the
problem, they often
send items to a regional
service facility their
own or a third partys.
Using Specialized Software for Profitable Reverse

Logistics
by Larry Laux, Senior Vice President, IFS North America
Over the last 30 years, enterprise

software has emerged as a
powerful force for profitability
assurance in business. But with
almost 1 percent of the economy
linked to product returns, it is
surprising that more software
options do not fully address the
reverse logistics process.
This may be because many
software vendors have a poor
understanding
of
reverse
logistics. The needs of the
reverse logistics space are subtle
and complex. A deep industry
knowledge and commitment
are required to fully develop
software that encompasses the
18
entirety of this underappreciated how they can affect profitability

discipline.
of a reverse logistics operation.
In a software selection process,
As I interact with people at these are the things that a
events like those held by the company ought to look for
commercial-off-the-shelf
Reverse Logistics Association, in
I have found that a number product or plan to develop on
of companies are looking for their own.
a comprehensive solution for
the industry, but more often
than not are forced into one-off
development programs. These
are costly and involve a great
degree of risk.
So lets take a quick look

at a few of the unique types
of functionality that reverse
logistics software must offer and
Digital Edition 53
Tracking th ro u g h
service chain
the
Customers
with
far-flung
channels of distribution will
accept returns at retail locations.
They must rely on reverse
logistics software to log who
brought the unit in and make
an initial assessment of the
www.RLmagazine.com
If the problem cannot

be solved at the
regional service facility,
the item might then need to
go to the original equipment
manufacturer (OEM). Reverse
logistics software must track
the unit through the service
chain and record that those
units are out in someone elses
hands. This is, after all, valuable
property, property that could be
the owned by the customer or
could be owned by the service
provider.
Warra n t y M a n a g e m e n t
The OEM might supply a
warranty that is either in force for
a longer or shorter period than
the one offered by the retailer.
Facilitating millions of dollars
in warranty reimbursements
is one way reverse logistics
software can drive profitability.
The software can provide data to
prove that units were acquired
on a particular day, and are
therefore still within the OEM
warranty.
www.RLmagazine.com
O u t s i d e s er v i c e pro v i d er
management
Complexity increases further
when it extends beyond
a companys own service
organizations to third parties
like contractors, subcontractors
or distributors that participate in
aftermarket support. A company
using reverse logistics software
may have a dealer network.
Software for reverse logistics
needs to take into account the
nature and quality of that business
relationship and administer
reverse logistics processes
accordingly. When there is a
good business relationship with
that outside entity, we can set up
business rules in the software
to advance replacement parts to
them when they simply notify
us that they are sending the
repairable units through a return
material authorization.
advanced to the dealer

or contractor, the system
still needs to keep track
of whether they did in
fact send units back.
So it is important to
have business rules
that specify that this
distributor gets, for
instance, up to 10 days
to send the defective
subassemblies
back.
When that date is at
risk of passing, the
system should send a
notification to the right
individuals to ensure
the parts come back
into inventory. Keeping track
of this level of reverse logistics
interaction between trading
parties on a manual basis or even
in some computerized systems
not specifically designed for the
task is impossible. The ability to
avoid losing track of products
in a reverse logistics value
chain obviously makes for a
more profitable reverse logistics
operation.
Streamlined
re pa i r
depot
Reverse logistics software can

also streamline work in the depot
repair environment through the
use of visualization -- videos
or drawings that demonstrate
to the repair technician how the
work is to be performed (figure
1). The software may provide
a short video or tutorial to the
engineer on the bench. We can
illustrate how a given component
When the replacement parts are is disassembled, how you would
19
Digital Edition 53
out of their engineers

then they could before,
which again improves
profitability.
Decision suppo rt
Advanced
reverse
logistics software should
also account for the
economic cost of repair,
which allows better
decision-making about repair
processes. Software used for
reverse logistics ought to allow
a company to establish a cost,
oftentimes in order to generate
a quote to the customer. But
once enough data has built up
in the system, we can establish
economic costs based on
historical work. Once the repair
activity on a unit has reached
this point of economic costs,
we can reevaluate if the part is
economically worth repairing.
At some point, it might be better
Fi g u r e 1: Reverse logistics software can

i n cl u de video tutorials for bench techs,
c o m p ressing the learning cur ve for
s p e c i fic repair processes.
do a preventive maintenance
cleaning, or make a required
adjustment. So we are able to
take someone who is perhaps
not as skilled on a product and
let them, through the use of these
visualization tools, get a quick
tutorial so that they can actually
work on products even as they
are getting over their learning
curve.
When software accommodates
the reverse logistics process
to this extent, a company can
get much more productivity
20
and more cost effective, just to

send a new unit to the customer.
But to make that decision, we
need the software to track what
we have used in parts and in
labor. If the cost gets to a certain
tipping point, the system can
throw up a red flag asking that we
stop and not work on the repair
without swapping the defective
unit or getting approval from the
customer for additional repair
work.
Conclusion
Automation of key business
processes is imperative in a
very competitive economy. And
if reverse logistics is mission
critical for your operation, or
just a discipline that represents
an opportunity for greater
margin, specialized software can
help you unlock that unrealized
RLM
potential.
Larry Laux is
Senior
Vice
President at IFS
North America,
where he is
responsible for
growing
the
companys footprint in the field
service management software
industry. He came to IFS as
the CEO of Metrix, the leading
field
service
management
software vendor IFS acquired
in 2012.He holds an MBA from
the University of WisconsinMilwaukee and a B.A. in Physics
and Mathematics from Ripon
College.
Digital Edition 53
What is the Reverse Logistics Association?
www.RLmagazine.com
At this years RLA Conference & Expo in Las Vegas you may have noticed a
television crew roaming around. The crew was there to capture response to the
conference and make a video that displayed the essence of the Reverse Logistics
Association. They were also filming segments for a new video series in RL Digital
magazine called RLA Rewound. As you view it, you may see some familiar faces. A
big thank you to everyone who took time out from their busy conference schedule
to stop and talk with our reporter. We hope you will share the video with friends
and colleagues as you introduce them to the association and explain what we do
and how we can support them. Stay tuned, because we may be talking to you for
the next series of videos for RLA Rewound.
www.RLA.org
www.RLAshows.org
www.RLmagazine.com
article
instead of disposed of as trash. This

is the complement to the traditional
supply chain, [logistics] and
distribution system used to produce
and deliver products to customers
(Meyer, 2011, para. 6).
Reverse Logistics vs. Green Logistics: Is there a

difference?
by Jennifer Bilodeau, Independent Author
Understanding the similarities

and differences between reverse
logistics and green logistics helps
identify optimal solutions to achieve
a balanced approach developing
strategies to maximizing benefits
throughout an organization.
Historically,
academia
began
noticing reverse product and
material flows as they surfaced in
the 1970s (Peterson, 2005, p. 8). It
was realized that the reverse flow of
product was much more complex
than forward flows. Because of
the environmental focus of this
era, the topic of reverse channel
management was often labeled
green logistics or environmental
logistics (Peterson, 2005, p.8).
22
Today, green logistics is defined

as supply chain management
practices and strategies that reduce
the environmental and energy
footprint of freight distribution
(Rodrigue, et al, u.d., para 2).
Reverse Logistics is defined as the
process of planning, implementing,
and controlling the efficient, cost
effective flow of raw materials, inprocess inventory, finished goods,
and related information from the
point of consumption to the point of
origin for the purpose of recapturing
value or proper disposal (Rogers
and
Tibben-Lembke,
1998,
p.2). Reverse logistics is green
by design as it manages returns
to resell, refurbish, recondition,
remanufacture, cannibalize for
Digital Edition 53
parts, or recycle products

minimize landfill waste.
to
In the aftermath of UPS launching

a new ad campaign with the tag
line carbon footprint reduced,
bottom line gets a boost, thats
logistics(Meyer, 2011, para 1)
there has been confusion by some
that reverse logistics and green
logistics is one discipline and
interchangeable in an organization
(Meyer, 2011, para 5-6).
The process of collecting used
products and materials from
customers to be reused, recycled,
or up-cycled into other products.
This process treats these materials
as valuable industrial nutrients
www.RLmagazine.com
The reverse flow of product in the

supply chain is a complex operation
that evolves and changes throughout
the product life cycle. These changes
will impact the decision making
on how a return should be handled
and how much expense should be
invested. To further complicate the
reverse flow, there are a multitude
of categories surrounding returns
that make it difficult to determine
how to achieve maximum value
recovery requiring flexibility to
maximize returns while reducing
environmental impacts. Reverse
logistics is a fairly reactive approach
responding to internal and external
customers (Steele and Rodriguez,
2008, para.2).
Manufacturing is often plagued
The most significant difference is

that reverse logistics concentrates on
saving money and increasing value
by reusing or reselling materials
to recover lost profits and reduce
operational costs. Green logistics
concentrates on transportation
issues, recycling and re-use. Green
logistics is about using material
friendly options for transportation
and centered on saving money but
places priority on the companys
image (Nylund, 2012, p. 49).
DeBrito (2003) clarifies that green
logistics focuses on the forward flow
of the supply chain while reverse
logistics is viewed as sustainable
development.
The prominent
environmental issues in [green]
logistics are consumption of nonrenewable natural resources, and
both hazardous and non-hazardous
waste disposal (DeBrito, 2003, p.
22). Green logistics is often known
as ecological logistics defined as
Differences and Similarities
understanding and minimizing
i n R e v er s e L o g i s t i c s a n d
the ecological impacts of logistics
Gr e e n L o g i s t i c s
(Rogers and Tibben-Lembke, 1998,
p.102-3).
These activities are
with shorter product life cycles
that are marketed through retail
stores and web with growing
market segment of consumers
purchasing products from mobile
devices creating a need to manage
returns quickly and efficiently not
only to capture value and benefit
the environment, but to meet
customer expectations by providing
efficient,
socially
responsible
post-sale service to maintain
customer loyalty. Consumers are
increasingly demanding scorecards
for climate change impacts, energy
consumption and emissions, the
pressure is on to responsibly manage
returned assets (Ryder Exchange,
2013, para. 4). Post sales service
has been recognized by many
companies as the differentiator
to win customer loyalty and gain
repeat business.
RL Careers
Microsoft
Retail Stores Global
Customer Returns
Program Manager
PlanITROI
Reverse Logistics
Business Development Association
Manager (RL) Reverse
Logistics Specialist
Account Manager for
South America
Sales Executive,
Advertising
Seminars/Webinar
Director
designed to measure environmental

impacts on transport reducing
energy consumption, and reducing
the use of materials.
Recycling, remanufacturing and
reusable packaging is the area
where reverse logistics and green
logistics intersect (Peterson, 2005,
p. 9). While reverse logistics will
examine how waste is disposed
reducing landfill waste, the focus
in reverse logistics is the cost and
availability of landfill space, rather
than conducting specific studies on
the organizations environmental
impacts. The drivers for reducing
waste in reverse logistics are
associated
with
increased
regulation, increased landfill costs,
or economic benefits of using fewer
raw materials (Rogers and TibbenLembke, 1998, p101 112). Figure
Figure 1 : C o m p a r i s o n o f R e v e r s e
Logistic s a n d G r e e n Lo g i s t i c s ;
Souce (R o g e r s a n d Ti b b e n Le m b k e ,
2001)
1 is a clear illustration of functions

and how they relate to reverse and
green logistics strategies.
Figure 2 identifies the areas of
reverse logistics and green logistics
that positively impact the total
carbon footprint. The white blocks
identify the mindset of functions
from a reverse logistics point of

view while the green blocks reflect
a green logistics perspective.
Although the some of these
functions seem identical, positively
with an outcome impacting the
environment, the mindset can be
very different. This difference in
how a decision is made to facilitate
reduction of the total carbon
footprint is a factor in balancing
organizational reverse or green
logistics solutions.
Recognize
that green logistics is a narrow
concentration where certain criteria
that is not necessarily reverse
logistics. Redesigning packaging
to use less material falls under
green logistics rather than reverse
logistics unless that packaging is
designed to be re-usable. (Rogers
and Tibben-Lembke, 1998, p. 103).
This packaging example could be
Up to 3-15%
of your bottom line
may be under attack.
considered green reverse logistics.

Although reverse logistics concerns
itself with product design, the
focus is not necessarily on the
reduction of material waste, but a
design for service. There should
be consideration to achieve a
balance. Every activity in both the
forward and reverse product cycle
impact reverse logistics strategies
and costs in some way. Every
reverse logistics professional has
been frustrated when told to reduce
costs but also to expedite handling,
repair, and shipping (Steele and
Rodriguez, 2008, para 14).
A reverse logistics process can take
many different forms and has many
different possible opportunities to
manage the product and re-introduce
it to the supply chain. In reverse
logistics consideration is given
to the collection and transport of
returns. One the return is received,
there are many areas where the
product may move such as testing,
refurbishment re-use of parts, od
recycling back to raw material. A
greening process is simplistic in that
it begins at the source with supplier
conditions and can work its way
through manufacturing, packaging,
and distribution channels (Nylund,
2012, p.51-52).
Fi g u r e 2 : S o u r c e : ( S t e e l e a n d
Rodrigues, 2008)
To learn more visit: www.RLA.org
www.RLmagazine.com
M a x i m i z i n g R e v er s e
a n d Gr e e n L o g i s t i c s
Str at e g i e s
The Aberdeen Group
conducted a study (2010)
evidencing that reverse
logistics focused on
improved the bottom
line. In this study the
turnaround time for return
parts and repair operations
when from an average
of 17 days to just over 4
days slashing repair costs
by 10% while increasing
average
customer
satisfaction from 81% to
93% (Dutton, 2010, para
1-3). The commonality between
companies who achieved the most
significant improvement were those
who developed standardized returns
and repair processes, had the ability
to recover costs from suppliers,
maintained real time data reporting,
had transparency throughout the
supply chain (Dutton, 2010, para 3
16).
and forward flows of product. The

company was plagued with returned
and excess product that was finding
its way to landfills. Although the
company wanted to reduce landfill
waste, they also wanted to reduce
the expenses associated with landfill
space and sought ways to capitalize
with their customer base through
green initiatives. The company
invested $1.3 million to inventory
management technologies that
collected and gathered information.
The company was able to save
$500,000 in labor costs associated
based on manufacturing strategies
designed to limit excess product
as well as maintaining open
communication channels with
customers for valuable feedback.
The information obtained in
managing returns, was used to
identify an opportunity to develop a
new product line $250 million from
returned cosmetics (OConnell,
2007, p. 30-34).
Recycling and reuse is the most

significant area where reverse and
green logistics coincide and happens
to be the most challenging for many
companies. Some companies may
choose to hold onto old product
lines with the hope there will be a
customer seeking obsolete parts and
products while others have policies
that products not sold within a
specific time frame should be sent
to a secondary market, or slated
for disposal (Steele and Rodriguez,
2008, para. 12-14). A case study
with Estee Lauder reveals a balanced
approach to green and reverse For a company to be successful
logistics by implementing and in green initiatives it should both
blending strategies in both reverse positively impact the environmental
25
Digital Edition 53
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whoareonthefrontlinesoftheindustryeveryday.
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companys identity is kept condential so you
maintaincontroloverwhoyouallowtocontact
you.
Wider SelectionRLQuoteallowsyoutobroaden
yoursearchatnocostandisaperfectcompanion
toyourusualresources.
New TechnologiesThetechnologiesforReverse
Logisticsareevolvingeveryday.Thebestwayto
stayaheadofthetechnologycurveistoallowthe
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offeralternativesolutions.
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ACTIVE RFI SUBMITTED 6/13/13

Global OEM organization is
looking for a Third Party Service
Provider to deliver Customer
Support Logistics services for
North and South America.
footprint and achieve cost

savings. Phillips produces
a wide range of electronic
consumer goods. Many
of their product lines such
as electric toothbrushes,
shavers, and baby bottles
must be disposed of with
strict
environmental
guidelines for managing
those returns. Phillips
partnered with Ryder hat
helped achieve an 80%
ratio of refurbishment
and re-use of returns
(Partridge, 2011, para.
41).
Ryder assesses
the
product
return
to determine if the
product is resalable or
malfunctioning and decide on
whether it is cost efficient to repair
them for resale or dispose of them.
If the product can not be resold, they
disassemble and sort parts reusing
what they can, and working with
recyclers for responsible disposal
in an environmentally friendly
way. Ryders focus is to provide
the greatest value to Phillips from
returned assets while maintaining
green logistics initiatives. Some
of the variables used in balancing
reverse logistics and green logistics
strategies has been making decisions
on returns based on the value of the
product. A product that sells for
less than $100 at retail, is not worth
refurbishing(Patridge, 2011, para
44). The visibility by implementing
inventory controls throughout the
forward and reverse product life
cycles has contributed to Phillips
ability to make better decisions
on how to maximize returns and
reduce environmental impacts.
Transportation was considered with
a goal of reducing the number of
www.RLmagazine.com
trips to manage both forward and

reverse logistics costs and reduce
their card footprint. By partnering
with Ryder, there was one facility to
manage returns of all product lines
eliminating multiple shipments.
Packaging on all product lines
is manufactured from recycled
cardboard and paper (Partridge,
2011, para. 38-50).
Balancing Reve rse Logistics
a n d Gr e e n Lo g i s t i c s
With an increasing consumer
awareness of greenhouse gasses
contributing to climate change,
global consumers are demanding
socially responsible and sustainable
business models that will slow
the effects of climate change.
Consumers also want superior
service and post sale support. These
two areas are often conflicting as the
demand of one area may impact the
demand of another. Nylunds case
study (2012) comparing the marine
manufacturer, Wartsila, and the
27
furniture manufacturer,
IKEA, in their green
and reverse logistics
initiatives.
The most
significant factor driving
Wartsila was time. The
company provides the
customer
an
option
of deliveries based on
turnaround time that
drives their distribution.
When time is available,
the
company
will
consolidate
shipments
and
select
green
transport when possible.
When consumers need
replacement
parts
quickly; couriers are used
to deliver merchandise
from a central location as soon as
possible. Although Wartsila makes
an effort to use green initiatives, the
component in decision making is
always turn around time delivering
the product as quickly and cheaply
as possible. IKEA, has the luxury
of time, therefore, they are selective
utilizing haulers that are committed
to green transport, will often delay
shipments to have full load capacity,
and have designed more compact
shipping pallets and containers to
increase load efficiency (Nylund,
2012, pg 59-66).
Warsila reported in this study that
they kept returns for parts up to
thirty years with no consideration
on warehousing costs. The primary
focus on customer service relies
entirely on the customer writing
a note on their form identifying
the reason for return. There is
no reverse logistics process to
recapture value. If the customer
reports the wrong part was sent, the
product immediately returns to the
Digital Edition 53
shelf without assessing the product.

Warsila identified themselves as
struggling with reverse logistics
management (Nylund, 2012, p66).
Ikea has a returns management
program to assess damage and
decide whether to place the product
back on the shelf for resale, in the
corner for marked-down clearance,
or scrap. IKEAs model is designed
to move products quickly having
them out of the warehouse in under
6 weeks (Nylund, 2012 p.66-70).
lines from end to

end throughout the
forward and reverse
product
cycles.
Understanding the
differences between
reverse
logistics
management
and
green
logistics
management
will
help an organization
visualize how a
decision in one
area will impact the
entire organization,
as well as consumers. Organizations
developing sustainable business
models can develop a scorecard that
will quantify variables that impact
the environment and achieve cost
savings. To avoid bad financial
decisions, the impact on operations
in both reverse and green logistics
strategies must be considered
from all aspects of the operation.
Turning green to gold will happen
only in organizations who have
the management sophistication
and experience to develop the new
vision, and who can find a way to
gather the facts and details needed
to launch effective initiatives
(Steele and Rodriguez, 2008, para
21)
RLM
Both Warsila and IKEA are

committed to improving their green
logistics, but both have different
constraints, organizational goals,
and customer expectations that
drive the way they balance green
logistics strategies. Warsila did
not have a formal reverse logistics
J e n n i f e r
program, but indicated they were
Bilodeau,
a
struggling to improve this area of
Reverse Logistics
business. IKEA has a formal reverse
specialist,
logistics program that examines
f o r m e r l y
organizational and environmental
supported
the
impacts choosing where it is
Department
of
both optimal and cost efficient
the Defense in
to concentrate green initiatives day to day management of both
(Nylund, 2012, p70-75).
inbound (return) and outbound
distribution of goods throughout
An organization should have a the command. She was recognized
exemplary
performance
clear understanding of their product for
28
Digital Edition 53
throughout the base relocation effort

working with internal/external
stakeholders managing multiple
projects assessing tangible goods
for movement to new facilities,
acquiring replacement items, as
well as recapturing value from left
behind products. In this role she
oversaw reverse logistics operations
including repair and warrantees,
secondary markets, deconstruction
and re-utilization of parts, as well as
final disposition instructions.
11th Annual RLA Conference and Expo Las Vegas 2014

Americas Premiere Reverse Logistics Event
February 10-13, 2014
R e f er e n c e s
DeBrito, M. P. (2003). Introduction. In Managing reverse logistics
or reversing logistics management (pp. 17-37). Rotterdam: Erasmus
University.
Dutton, G. (2010, July 4). Reverse Logistics: Money Tree or Money
Pit? Retrieved May 17, 2013, from http://www.worldtradewt100.
com/articles/reverse-logistics-money-tree-or-money-pit
Meyer, D. (2011, October 7). In supply chain logistics management,
theres a reverse gear and its green: Part 1 [Web log post].
Retrieved May 17, 2013, from http://valuestream2009.wordpress.
com/2010/10/07/in-supply-chain-logistics-managementthere%E2%80%99s-a-reverse-gear-and-its-green-part-1/
Nylund, S. (2012). Reverse logistics and green logistics
(Unpublished masters thesis, 2012). Vaasan Ammattikorkeakoulu
Vasa Yrkeshogskola University of Applied Sciences. Retrieved
May 16, 2013, from https://publications.theseus.fi/bitstream/
Over 100 Exhibitors and Sponsors 1,500 RL

Professionals Representing 600 Companies
Make plans now to join us for the 11th Annual Reverse Logistics
Conference and Expo on February 10-13, 2014 at the Rio Hotel and
Casino.
handle/10024/46993/Reverse%20Logistics%20and%20green%20
logistics.pdf?sequence=1
OConnell, A. (2007, November). Improve your return on returns
[Editorial]. Harvard Business Review, 30-34. Retrieved May 19,
2013.
Peterson, A. J. (2005). An examination of reverse logistics factors
impacting the 463-L pallet program. Manuscript submitted for
publication, Air Force Institute of Technology, Wright-Patterson
Air Force Base. Retrieved May 17, 2013, from http://www.dtic.mil/
cgi-bin/GetTRDoc?AD=ADA437509
Monday offers pre-conference workshops with our RLA Charity

Golf Tournament at Red Rock Country Club. Tuesday adds more
workshops along with industry reports and then in the evening,
our Awards Gala. Wednesday opens with the keynote address
followed by sessions presented by over 150 RL professionals,
leading academics, and industry leaders.
The Expo where 3PSPs will showcase their RL services and solutions.
Rodrigue, J., Slack, B., & Contois, C. (n.d.). Green Logistics. Green
Logistics. Retrieved May 14, 2013, from http://people.hofstra.edu/
geotrans/eng/ch8en/appl8en/ch8a4en.html
Rogers, D. S., & Tibben-Lembke, R. S. (1998). Going backwards:
Reverse logistics trends and practices. Reno, NV: Reverse Logistics
Executive Council.
Steele, K., & Rodriguez, E. (2008, July/August). Reverse Logistics
Turning Green to Gold. Reverse Logistics Magazine. Retrieved
May 16, 2013, from http://www.rlmagazine.com/edition12p28.php
If you are a Reverse Logistics professional dont miss this event!

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article
environment.
Understanding Customers Return Behaviour to Create Value

by Ellie Turner, Business Development Manager, Clear Returns
Clear
Returns,
returns
intelligence specialists, share
their research into consumer
shopping
and
returns
behaviour conducted with UK
fashion retailers, highlighting
the key concerns for retailers.
It is well reported in the
industry that on average 1 in 3
clothing items bought online is
returned, as The Guardian (1)
for instance, reported in January
of this year. For online and
multi-channel fashion retailers
this can be a huge blow to their
revenue and profit margins,
32
globally returns were estimated

to cost the sector $200 billion Clear Returns are an awardin 2012 (2).
winning provider of analytics
software to the retail industry
In a time where e-commerce that helps reduce return rates
has taken off and fashion and associated costs - here we
retailers are under increasing share some of our insightful
into
consumer
pressure to compete, retailers research
must now look to optimize their psychology around online
profits and back-end processes shopping and returns. Over
to improve their bottom line, the last year the team has been
rather than focusing purely on analysing sales and returns
sales. As the online channel data from several UK fashion
continues to grow, domestically retailers and has uncovered
as well as internationally, so too some interesting findings about
will the problem of handling how shopping behaviours have
shifted in a multi-channel retail
reverse logistics.
Digital Edition 53
www.RLmagazine.com
For example, certain customers

have clear preferences to overbuy; in other words they love
to bring the shop to them. These
customers will buy several
clothing options online to try
on at home, fully intending to
return a large chunk of their
purchases. They may think
they are a retailers golden
customer and retailers may see
them as being their most loyal
customers just by looking at
how much money they spend,
how many items they buy and
how often they buy. Yet if a
retailer doesnt measure their
return rate alongside their order
history then they can be getting
the wrong picture.
that a small percentage of

customers stand out for their
exceptional
value.
These
customers regularly return
to their preferred brands to
make
several
high-value
purchases, and account for a
high percentage of total sales.
Each individual can bring in
thousands to tens of thousands
of
pounds
in
revenue,
contributing a large amount to
These over-buyers can easily retailers profits. Therefore it is
be mistaken for loyal customers crucial for retailers to separate
but our research indicates these groups from each other,
as they should be treated very

differently.
Our research also shows that
the largest proportions of
returns are often caused by first
time, dissatisfied customers.
Generally these customers
make a small purchase of one
or two items with a fairly low
basket value meaning they may
not appear to be a lucrative
prospect, but once they receive
an unsatisfactory product or
experience they wont buy
Money Talks
E-Waste Systems to Acquire
eStewards & R2 Recycler 2TRG
Full Article
Intel Capital Celebrates 10 Years of
Investing in Russia
Full Article
Sprint
Shareholders
Overwhelmingly
Approve Merger Agreement with SoftBank
Full Article
ReverTech Solutions Acquires TestTech

Full Article
Oracle Prices 2.0 Billion of Investment Nokia to fully acquire Siemens stake in
Nokia Siemens Networks
Grade Notes
Full Article
Full Article
www.RLmagazine.com
33
Digital Edition 53
Read the Press
from you again. This means the

true cost isnt just a refund - its
the potential repeat purchases
of these customers who could
bring in millions of pounds of
additional revenue.
There are also customers
who have a habit of wear
and return behaviour - those
who regularly buy outfits they
cant afford, wear, and return
them in depreciated condition.
Although generally they make
up a very small percentage of
customers they can account
for as much as 10-15% of
returns. However we have also
discovered that certain retailers
can have much more trouble
with this group, costing them
much more annually. Similar
to customers who like to overbuy their spend may appear
attractive but after refunds
and other costs to serve are
removed the retailer may
actually lose revenue. Our
research highlights that these
individuals can cost thousands
of pounds every year, even in
tiny numbers they can drain
millions of pounds from profit
margins.
being measured with great

effectiveness, except by those
exceptionally large companies
who can afford to build internal
teams and systems to deal with
this.
figures http://www.guardian.
co.uk/business/2013/jan/03/
gift-returns-christmas-retailfigures
(2) Estimate from our own

research of the market and from
By analysing returns behaviour, speaking with retailers.
RLM
retailers will understand their
customers much more and they
Ellie
Turner
will be able to spot these groups
is a 1st class
within their own customer base.
H o n o u r s
This will allow them to target
F a s h i o n
customers more appropriately
Business
and cost-effectively, as well as
graduate from
spotting crucial opportunities to
Glasgow and
encourage greater loyalty and has worked with Clear Returns
How can retailers then create
repeat purchasing which will in since the company was founded
value from this behaviour?
turn benefit their revenue and in 2012 using her fashion
Clearly there is a need for
profit margin.
knowledge to build their market
retailers to understand what
research, PR strategy and sales
impact customers returns
pipeline. Further information
behaviour, as well as their Sources
can be found on the Clear
shopping
behaviour,
has
on both their revenues and (1) The Guardian: Gift returns Returns website. http://www.
profits. Currently this is not take shine off Christmas retail clearreturns.com/about-us/
34
Digital Edition 53
www.RLmagazine.com
that its flagship product for

erasing data from smartphones
and tablets has been selected by
KDDI Corporation and Okinawa
Cellular Telephone Company
(OCT) for use in their trade-in
program.
E-Waste Systems Inc. Expands Full Article
into Mexico
9 July 2013-Electronics recycling Nokia renews marketing
and reverse logistics firm strategy,
retains
JWT
E-Waste Systems Inc. (EWSI) Worldwide as creative agency
Los Altos, Calif., has entered Espoo-Finland--3 July 2013the Mexican market through a -To strengthen its position in
joint venture and management the mobile market, Nokia today
agreement with Scoex S.A. announced a renewal of its
de CV, based in Mexico City. global marketing strategy, and
The deal includes rights to the appointment of JWT, one
eWasteTrack and eWastes of the most renowned creative
cloud-based technology.
agencies in the world.
Full Article
Full Article
8 Canadian Companies That
Should Have Online Shopping
6 July 2013-It seems like
many major retailers have
acknowledged that e-tail is here
to stay, but some companies
have not been so quick to accept
and adopt this new tactic. Weve
compiled a list of eight major
companies in Canada who still
have not adopted an e-commerce
site and explained why we feel
they would benefit from offering
the service.
Full Article
Citrix and Arrow to drive

Europe-wide channel growth
Gerrards Cross, UK--2 July
2013--Citrix today announced
the appointment of Arrow
Electronics Inc. as its first panEuropean distributor to further
expand the European channel for
the SaaS solution portfolio. As
part of the distributor agreement,
Citrix SaaS products will be
available on the ArrowSphere
cloud services platform allowing
Arrow resellers to market
and sell Citrix SaaS products
through their existing webstore
Blancco Mobile Data Erasure or the ArrowSphere white-label
Solution to Support KDDI webstore functionality.
Trade-In Program in Japan
Full Article
Joensuu,
Finland--2
July
2013--Blancco, the global leader CEA Encourages Coloradans
in data erasure and computer to Utilize eCycling Locations
reuse solutions, has announced Arlington,
VA--2
July
www.RLmagazine.com
35
2013--Starting this week, a new

Colorado mandate prohibits
residents from disposing of
electronic devices, commonly
known as e-waste, in Colorado
landfills. In response, the
Consumer
Electronics
Association (CEA) informed
consumers of the nearly 50
industry-certified
locations
throughout Colorado that accept
electronics for eCycling.
Full Article
Technology
improving
warehouse management
2 July 2013-When businesses
know
exactly
where
merchandise is located, they
can align resources to improve
supply chain efficiency and
cut costs. This is one of the
reasons companies continue to
invest in technology designed
to streamline the flow of
information related to freight
management..
Full Article
Study identifies top trends in
supply chain management
3 July 2013-Properly managing
supply chains gives businesses
a number of advantages over
their competition. Increased
efficiency reduces costs while
ensuring that inventories are
correctly balanced. Similarly,
fast order fulfillment and high
product quality boosts customer
satisfaction and can drive
revenue growth.
Full Article
Digital Edition 53
FEATURE
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So we offer ways to expedite your solutions
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anonymous.
Technical Trends
The Repair Opportunity Half-Life
I read an interesting build log
recently from an engineering
student. The student, Andrzej
Surowiec is studying electrical
engineering
at
Warsaw
University in Poland.
He
outlined how he was able
to adapt a Retina Display to
work on a PC. The interesting
thing about the article was
how inexpensive the process
was. For less than $100 in
materials he was able to get
a 2048 X 1536 pixel retina
display connected to a PC
using a Display Port interface.
That $100 cost included the
retina display itself, the power
supply, connectors, cables and
backlight electronics.
The display Andrzej used was
from the third generation iPad.
That product was released in
late Q1 of 2012. Consider
that in a little more than a
year the cost for this key part
has dropped to the point that
a retina-type display can be
purchased from eBay for less
than $60 retail! I share this story
because I believe the financial
managers in Reverse Logistics
should work to normalize our
ability to recognize the small
and shrinking window of
time when a product is worth
repair. That window of time, I
RL Solutions Its Confidential and FREE.

For more information visit RL Solutions at
www.RLA.org
RL Solutions
www.RLmagazine.com
37
term the repair half-life. This

is the point when after repair
the total repair cost including
margin and the product value
is less than one-half of the new
wholesale product cost.
Key to understanding the repair
half-life is in measuring the
delivered-value after repair.
The worth of any repair process
is the value that is added to the
underlying asset to become
salable. The repair service
cost must be low enough to
allow the product to be sold at
retail with acceptable margins
and good Customer demand.
There will be some variation
as to where this cost inflection
point is. It will vary according
to the structure of the business.
A small owner proprietor
shop will have much less of a
delivered-value hurdle than a
large Contract Manufacturer
with US or European labor.
In general however when you
consider all the costs from the
repair process:
Digital Edition 53
Freight
Materials
Capex
Labor
Spoilage
Margin
Residual product value
All ramp costs
At the end of that repair process

there should be the opportunity
for the retailer to double their
money with a retail product
sale. If the retailer cannot, then
you should seriously question
if the repair offering is a truly
viable business for the product
in question.
Most of that logic is pretty
clear and you already know
this at least experientially. The
38
real danger zone is how fast

the market moves. The market
trend is such that you need to
consider the repair half-life
not just for a single point in
time when the repair process
is stable, but across the entire
ramp period.
The iPad 3 was on the market

B r y a n t
for just over six months before
Underwood
its replacement was announced.
manages Public
Just a few short years ago,
Safety Sourcing
products were routinely in
for Cassidian
production for over a year. Not
today. If you started to perform Communications, an EADS
warranty repair at product North America Company in
launch, you may spend two of Frisco Texas.
six months getting the process
stable and profitable. This is
followed by three months of
production with good margins.
Then a higher cost long-tail
production wind down. After
Digital Edition 53
www.RLmagazine.com
FEATURE
that you just hope there are

no write-offs from excess
materials. To avoid this trap
we must consider the complete
area under the cost curve for
the entire product life. The
number one reason I have seen
RL service providers struggle
with profit is because they
did not consider the hidden
costs latent in the beginning
and ending of a product life
cycle. On top of this risk
the production cycles are
becoming so short that there are
many products that can never
have any hope of economical
repair in the country of sale.
For these products they need
to go straight to salvage or
export and avoid any attempt
at repair outside of gathering
information for engineering. So
for your next RL opportunity,
when performing the pricing
analysis keep the repair halflife in mind and avoid radiation
sickness of becoming a nonRLM
profit enterprise.
Returning Thoughts
Case Study: Jarden Shares the Benefits of Re-manufacturing
Are you keeping tabs on what
happens to your products in the
secondary markets? Soon after
starting her new role, Kathy Murphy
observed a very active secondary
market full of her product lines.
Dollar stores, value retailers,
auctions and websites with open box,
almost new Jarden products for sale
at discounted prices. Jarden often has
Return Allowance programs with
retailers to avoid the costs of Reverse
Logistics processing. As a result, the
retailers keep the returned products
and typically destroy or sell off the
goods, usually in bulk quantities,
to secondary market resellers or
retailers to recapture some value.
Was this active secondary market
a problem or an opportunity? Were
these secondary sellers presenting
and supporting Jarden quality and
brand standards? Murphy decided it
was time to understand the secondary
market better with a pilot program
to take back and remanufacture the
retail returns. If we do NOT do it,
someone else will or already is!
says Murphy, we wanted secondary
market products we can be proud
of.
www.RLmagazine.com
Kathy Murphy is the Senior Sales

Operations Manager at Jarden
Consumer Solutions (JCS). Its parent
company, Jarden is a Fortune 500
company with a portfolio of over 100
consumer brands. Major JCS brands,
include Oster, Sunbeam, Health o
Meter, FoodSaver, and Mr. Coffee
and K2. Murphy is responsible
for collaborating with the supply
chain, marketing, and finance teams
to identify and liquidate excess
and obsolete inventory for all JCS
products. Over the last 20 months
JCS has been implementing a
remanufacturing program with some
of their small kitchen appliance
products with the help of a 3rd party
reverse logistics and remanufacturing
services partner. This new strategy
has been implemented to investigate
the benefits versus their existing
Return Allowance program.
Conce rns
Returns
Prog r ams
w ith
Retail
A llowance
A Returns Allowance program

was initially established with
major retailers to avoid the need
to handle product returns and
incur transportation and additional
handling or processing costs related
to the returns and reverse logistics.
However, Kathy Murphy observed
that within this blanket program,
there may be some opportunities
worth investigating. She observed:
Brand Disruption With the

Return Allowance program, the
Retailers owned the returned
products. In order for them to
recapture some value from the
returned products, some JCS
returns were being sold into the
secondary market. In some cases
Kathy kindly shared her experiences
there were concerns that these
with
the
Reverse
Logistics
secondary market products may
Association members and guests in
impact the JCS brand image
an open webinar hosted by the RLA
and that the high visibility via
Consumer Electronics Committee.
39
Digital Edition 53
the Internet may

be disrupting both
U.S and Latin
American markets.
Brand Protection
Brand protection
was a concern,
because
others
were
selling
JCS product as
refurbished with
huge
variations
in quality and
pricing.
The
secondary products
had no standards
for packaging (some in brown
boxes, some in damaged color
boxes) and no standards for the
sanitation of returned units that
may have been exposed to food
or that may be used for food in
the future (such as a Crock Pot
slow cooker).
Double Warranty Costs some
secondary market products were
getting returned to JCS with
warranty issues, but in reality JCS
already paid warranty on these
units in their Return Allowance
program with the Retailer. As
a result, JCS is covering the
warranty on products in the
secondary marketplace and in
reality is paying a duplicate
warranty claim on the same item.
Profit Opportunity since there
seemed to be good demand in the
secondary market for product,
why not capture that profit
opportunity for JCS.
carbon footprint
Benefits of Remanufacturing
As a result of the remanufacturing

program, Murphy outlined a list
of some of the benefits she has
identified so far:
Gained better control of brand
40
image and unauthorized pricing

Increase in revenue and margin
via sales of remanufactured units
and recycling
Return Allowance Program
can result in product entering
the secondary market with no
control
Utilize remanufactured product
for warranty replacements
Data collection is yielding better
information for warranty and
engineering analysis
JCS quality/engineering teams
have utilized the data collection
to implement improvements to
product.
Improvements
were
implemented to packaging (both
1st quality and remanufactured)
Increase opportunities to reduce
duplicate warranty claims
Opportunity
to
harvest
components for alternative
uses (blender jars, switches,
decanters)
Influence final destination of
our product ( i.e. landfills,
International, assist internet
sales)
Enhance
sustainability
opportunities
within
the
organization to help reduce our
As a result of the
successes
of
the
current
program
Kathy Murphy has
grown the program
to over 55 items and
with full support and
encouragement from
senior management.
She will now be
expanding
the
program to other
retailers, other product
lines and exploring
other product categories. While
remanufacturing is not suitable for
all products, there is certainly a profit
and brand protection opportunity at a
lower price point than we expected,
with the inclusion of some small
kitchen appliances with a retail price
point of 19.99.
Maybe it is time to review your
Return Allowances and Reverse
Logistics programs. There may
be significant profit and brand
protection opportunities available
for your organization as well! RLM
Good Luck!
Paul Rupnow - Director, Reverse
Logistics Systems, Andlor Logistics
Systems Inc.
Editor
Reverse
Logistics Professional
Report
Business
Insights
and Strategies for
Managing
Product
Returns
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Using Specialized Software for

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