4. Making returns easy, whilst maximising sales?
We promote ease of return:
•21-day Home Approval Guarantee (HAG)
•Returns are free
•Returns are fast
•Returns are convenient – lots of options
•Xmas amnesty – gifts
Which drives customer experience but brings challenges
5. The returns challenge
Over 6M returns parcels p.a.
- Of which over 100k are ‘2-man’ items
Fast credit is essential
- Customers may be waiting to shop again
- Confirmation of credit SMS, VTL, Email
Make it easy for customers:
-Speed
-Quality
-Damage
-GLIT
6. The response
3 core returns options
- Customer’s choice to suit lifestyle
Drive all carriers to speed/consistency
- Long term average 2 working days: contact to credit
- Continual monitoring & feedback to carriers
- By store/depot/postcode
- Drill down into tracking
- Investigate and resolve outliers
14. Cons
•Customer ‘waiting in’
•‘Leave safe’ not
trusted
•Drivers operate 9-5
•Highest cost
•Low customer compliance
•20%+ carded
Pros
•Ideal for heavy items
•National coverage
•Customer selects date
•Mon-Sat
•Fully tracked
•Couriers can arrange time
to suit customer
•Also available ‘at the door’
or arrangement with local
courier
15. Cons
•Customer has to wait in
•3-5 day service
•Working hours/days only
•Low level of customer
compliance
Pros
•Same carrier as used for
‘2-man’ deliveries
•National coverage
•Fully tracked
•Customer pre-advised of
collection time slot
•Delivery/replacement
service available
16. How do they compare (speed)?
Length of time taken to credit a return to account (1 man)
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
P11
P12
P1
P2
Period
Averageworkingdays
RM UnSchd Schd Coll +
17. Consistency is as important as speed
How variable is our performance ?
0%
10%
20%
30%
40%
50%
60%
70%
Number of working days
Percent
current period Last Period
20. Purpose
Credit customer accounts with speed and accuracy
Maximise the value of returns
Return items to stock quickly
Process returns efficiently
Returns avoidance
21. A Focus on Raven
5 Floors
210k Sq Ft
Head count 700
Flexible shifts 06:30 – 22:30
22. A Typical Day
Clothing / Hanging 77%
Typically 24k parcels
43K items
Footwear 15%
Hardware 8%
Received and Streamed
23. 3% Output Sampling
Measured Work
R-Log System
Efficient Process with Speed & Accuracy
Examined/ Processed/ Credited
26. Same day 73%
48 hours 98%
Next day 23%
Items Returned to Stock
27. Customer After Sales Support
Returns Prevention
Product Sourcing/ Quality Checking
Order Fulfilment Process
More Informed Purchasing
28. THANK YOU
• QUESTIONS
• Returns? Millstone or USP
• Do consumers require the same level of
choice on returns as they do with deliveries?
• Should returns be free?
Notas do Editor
Ops supporting our retail colleagues! Obviously, visibility of stock in store is the first difference any retailer notices moving to e-comm, hence the requirement for a dedicated e-comm DC In a store, customers can try before they buy, large numbers of clothes go through the changing rooms, fewer to the till How do we replicate this in e-comm, allow customers to be confident clothes will suit them and fit without driving high volumes of returns.
High returns drives high levels of cost and erodes margin. Also makes it more likely an item will be completely unsalable
Wrexham Strategic partnership…
Key Points – what’s important to us… 1: Returns are a necessary part of the way we trade (certain lines planned returns +50%) yet represent a failure cost, hence important we do what we do as cost efficiently as we can 2: Customers purchasing potential is predicated by having available credit to spend on their account, hence passing credit on returns quickly and accurately is extremely important. 3: Returns are a fundamental part of the way we trade, single biggest trading supplier to our business, hence recovery of returns back to stock is vital. 4: Orders are taken against expected returns hence having a flow of returns stock constantly available is essential, hence speed is important. 5: Lots of opportunities to avoid returns and still offer the customer choice.
Built in 1907 Heritage site 250 people flexi-shifts (2000 hrs per week) From 5-7hrs and 4-6hrs Agency 34 FTE 609 (flexed up)
Predominantly clothing Items are then streamed throughout the building for processing Capacity 100k Peaks currently at 65k
Primary process in the building within which most people are engaged. R Log system Same process, different product throughout the building Operators on target – upward of 30 p/h dependant upon product 3% sampling of output Key indices – Accuracy / Presentation
Talk about refurbishment….. Talk about secondary inspection Talk about compliance…. 2 Man comparison….30% Fit for stock, driven by low recovery on furniture flatpack. Within the mix 60% on TV’s WG 50%
Back to stock 73% same day, 23% next day, 98% 2 days. Returns sensitivity…within 15mins of being located on WMS they can satisfy a pick.
More informed purchasing – social media, product reviews, sizing, videos, imagery, avatars The fulfilment process – accuracy, timely delivery/ when they want it Customer After sales support - Anovo, GBM, Ecomaster, NESN Compliance