Reverse Logistics Plans Cut Costs and Increase Customer Satisfaction
January 07, 2014
U.S. consumers were expected to spend $602 billion during the holiday season and 2013 returns were expected to reach around 10 percent of overall sales. That means over $60 million of merchandise is heading back to stores.
<p>Reverse logistics costs the industry billions of dollars each year in the handling, shipping, insuring and processing of returned products. By implementing a comprehensive reverse logistics plan, shippers can simplify the process for both themselves and their customers. They can also cut costs and minimize waste.</p><p>Industry research shows that companies investing in reverse supply chain improvements saw a four-fold decrease in cost per return. They also saw a 12 percent increase in customer satisfaction.</p><p>Reverse logistics plans are not a one-size-fits-all, and different companies will need a different approach.</p><p>Reverse logistics can integrate returns into a company’s overall supply chain strategy and warehouse management system instead of allowing returns to remain a stand-alone process.</p><p>By integrating forward and reverse logistics in the same facility, companies can drive efficiencies into the returns process. Reverse logistics can also include testing, re-packaging and refurbishing products, and reconciling payments and credit.</p><p>Shippers and their partners can also gain efficiencies by using technology to track and automate returns, saving time and expense.</p><p>To best meet their needs, shippers can consult with their logistics and transportation providers, making them partners in the process. That allows logistics providers to have a better understanding of necessary capacity and resources.</p><p>Creating a comprehensive plan may become more important as e-commerce continues to increase. While online shopping is on the rise overall, it is especially high during the holidays.</p><p>Holiday e-commerce sales were projected to increase 15 percent. Those sales should generate $61.8 billion in sales during November and December alone, and $262.3 billion in sales for the full year. By 2017, there will be $440 billion in sales.</p><p>Not only are buyers turning to online shopping sites, they’re visiting them from their mobile devices. Mobile commerce sales might generate $41.68 billion of the total $262.3 billion of e-commerce sales for 2013. By 2017 mobile commerce sales are expected to easily exceed $100 billion.</p><p>Industry research shows that more than half of consumers surveyed said they had returned merchandise to an online retailer, and most shoppers expect their purchases to come with a pre-paid shipping label to facilitate returns.</p><p>Penske Logistics offers a variety of ways to help your business with reverse logistics. Visit <a href="https://www.penskelogistics.com/">PenskeLogistics.com</a> for more information.</p><p align="right"><i>By ”Move Ahead” Staff</i><i></i></p></div>
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Rely on Reverse Logistics to Cut Costs and Boost Loyalty
March 08, 2013
Whether it’s an online shopper returning clothing that doesn’t fit or a company plant returning defective parts, returns are an integral part of doing business.
<p>Unfortunately, reverse logistics costs the industry billions of dollars each year in the handling, shipping, insuring, and processing of returned products. Industry research estimates that the average manufacturer spends up to 15 percent of its total revenue on returns alone.</p><p>“Reverse logistics is a critical part of the overall <a href="https://www.penskelogistics.com/industries/retail/">supply chain</a> and is often ignored,” Penske Logistics senior vice president of sales Joe Carlier noted. “Proper planning of the transportation network, including material coming back, is essential in the overall planning process and cost optimization.”</p><p>Manufacturers and distributors can cut costs and improve customer service by coordinating a reverse logistics system for handling returns.</p><p><a href="https://www.penskelogistics.com/">Penske Logistics</a> vice president of distribution center management Eric Hepburn explained: “Optimizing the reverse logistics network within a company’s supply chain can often lead to an opportunity for growth via outlet stores or quick entry into secondary goods markets.”</p><p>Reverse logistics can integrate returns into a company’s overall supply chain strategy and warehouse management system instead of allowing returns to remain a stand-alone process. By integrating forward and reverse logistics in the same facility, companies can drive efficiencies into the returns process.</p><p>Depending on the company’s primary customers, there are several strategies the supply chain partners can employ. Reverse logistics management can include a tracking system that cuts down both the service time and replacement costs. It can also include testing, re-packaging and refurbishing products, and reconciling payments and credit.</p><p>Industry research found that more than half of consumers surveyed said they had returned merchandise to an online retailer at some point. Most shoppers expected their purchases to come with a pre-paid shipping label to facilitate returns.</p><p>After prepaid, preaddressed shipping labels, the second most common consideration that consumers cited regarding returns was how quickly their accounts are credited.</p><p>“Companies often look at reverse logistics as a necessary evil within their network but it really can drive opportunity,” Hepburn said.</p><p></p><div class="rm-shortcode" data-rm-shortcode-id="YT63QH1571657581" id="b1ff9"><blockquote class="twitter-tweet twitter-custom-tweet" data-partner="rebelmouse" data-twitter-tweet-id="310066752925097984"><div style="margin:1em 0">Rely on reverse logistics to cut costs and boost loyalty -- read it now on the Penske blog http://t.co/xKMxssPCma</div> — Penske Truck Leasing (@Penske Truck Leasing)<a href="https://twitter.com/PenskeNews/statuses/310066752925097984">1362760649.0</a></blockquote></div><p></p><p align="right"><i>By “Move Ahead” Staff</i><i></i></p></div>
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CSCMP's State of Logistics Report Finds Intermodal, 3PL Logistics Play Increasing Role in Freight Movement
June 15, 2012
Increased transportation costs and tightened trucking capacity are generating more opportunities for third-party logistics companies and intermodal freight transportation.
<p>Joe Gallick, senior vice president of sales at Penske Logistics, said a challenging economy lends itself well to 3PLs as companies realize the need to leverage assets to be “agile and flexible and to consider different modes.” He added, “modal shift is something we see quite regularly.” </p><p><img class="rm-shortcode" data-rm-shortcode-id="377c5768673e34e9f649d64f90d3072a" data-rm-shortcode-name="rebelmouse-image" id="ff6ce" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNzEwMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzNTU5MTg1NX0.4lxalxLQtra0atob2iLaI5w0Q_abT1KzJzNHC5kf62I/img.jpg?width=980"/>Gallick, along with other industry executives, spoke in a panel discussion at the National Press Club in Washington, D.C., <a href="https://www.gopenske.com/newsroom/2012_6_13_cscmp_logistics.html">following the release</a> of the 23rd Annual State of Logistics Report, introduced by the Council of <a href="http://www.cscmp.org/">Supply Chain Management Professionals</a> (<a href="http://www.cscmp.org/">CSCMP</a>) and presented by <a href="https://www.penskelogistics.com/">Penske Logistics</a> on June 13. </p><p>Rosalyn Wilson, senior business analyst at Delcan and the author of the report, said the third party provider and forwarding sector of the economy was up 9 percent and gaining strength at the end of 2011. </p><p>Wilson said U.S. business logistics costs rose 6.6 percent to $1.28 trillion in 2011. In addition, transportation and inventory carrying costs increased in 2011. Transportation costs increased 6.2 percent due to higher rates, while inventory carrying costs increased 7.6 percent due to higher costs for taxes, obsolescence, depreciation and insurance. </p><p>Capacity within the trucking industry has continued to tighten, due in part to increased regulations, such as Compliance, Safety and Accountability. New hours-of-service regulations that take effect in July 2013 will reduce the number of hours a driver can work, further tightening capacity. What’s more, many companies are having a hard time finding drivers.</p><p>“By the end of 2011 about 18 percent of carriers surveyed by TCP reported 6 to 10 percent unseated trucks,” Wilson said. </p><p>Wilson cautioned attendees that capacity will remain tight. "I urge everyone to begin making contingency plans for the day you cannot get a truck," Wilson said. "The railroads are standing by with a great offer and have the capacity to take up the slack." </p><p><a href="http://www.youtube.com/watch?v=cSzJuXYVl20&feature=relmfu">Interview with Penske Logistics' Joe Gallick </a></p><p><a href="http://www.youtube.com/watch?v=EYAjnvOX2yY">Interview with report author Rosalyn Wilson</a></p><p><a href="http://www.youtube.com/watch?v=DdP2eI7HJZY&feature=channel&list=UL">Interview with moderator Rich Thompson</a></p><p>Trucking companies are already partnering with rail to avoid problems caused by the driver shortage and to avoid the cost of acquiring new equipment or put off replacing older equipment, the report said. </p><p>Freight volumes for trucking and rail increased in 2011. Trucking, which comprises 77 percent of the transportation component, posted a 6.2 percent rise, while the railroad sector saw a 15.3 percent increase. Intermodal volume throughout 2011 increased 5.4 percent to 11.9 million containers and trailers. </p><p>“It is becoming a more preferred method of moving goods,” Wilson said. </p><p>John Lanigan, executive vice president and chief marketing officer at BNSF Railway, said the company’s domestic intermodal growth is up double digits. </p><p>To help facilitate efficient intermodal movements, BNSF is purposely building its newest intermodal facility in Kansas City outside of town so there is room for companies to build distribution centers near it. “These thousand-acre industrial parks are selling out in four to five years of us opening up a new intermodal facility,” he said. </p><p>Technology is also changing how goods are moved. Greater data is available and warehouse and transportation management systems can analyze the information to streamline operations.</p><p><img class="rm-shortcode" data-rm-shortcode-id="138bcee3c2b869f7b2638c5b90371615" data-rm-shortcode-name="rebelmouse-image" id="45503" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNzEwMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwNTI2OTQ0MH0.E9WWG-oIbu7prSW2ADxwvPFu0Quzm2VhsVG37F-E0kY/img.jpg?width=980"/>Gallick (photo on right) said there has been more emphasis on optimizing the movement of goods, including improved layout and design of warehouses. “It is about optimization within the four walls,” he said. </p><p>Route optimization and efficient use of labor within the warehouse is also improving the movement of goods. </p><p>Rick Slather, vice president of customer supply chain for North America consumer products for Kimberly Clark, said information sharing is changing the way many companies operate. </p><p>“The new world is forcing us to collaborate because we have to show higher service levels with lower inventory,” Slather said. </p><p>Here is a sampling of early media coverage of the report: </p><ul class="ee-ul"> <li>Reuters: <a href="http://www.reuters.com/article/2012/06/13/logistics-costs-idUSL1E8HCASX20120613">U.S. business logistics costs rise in slow economic recovery</a></li> <li>Journal of Commerce: <a href="http://www.joc.com/supply-chain-management/losistics-costs-rose-66-percent-last-year">Logistics Costs Rose 6.6 Percent Last Year</a></li> <li>Supply Chain Management Review: <a href="http://www.scmr.com/article/state_of_logistics_report_points_to_sluggish_recovery/">State of Logistics Report Points to Sluggish Recovery</a></li> <li>Commercial Carrier Journal: <a href="http://www.ccjdigital.com/trucking-rates-up-5-15-in-2011-logistics-report-finds/">Trucking rates up 5-15% in 2011, logistics report finds</a> </li> <li>FleetOwner: <a href="http://fleetowner.com/blog/uncertain-state-logistics">An uncertain state of logistics</a><em></em></li></ul><p><em>By “Move Ahead” Staff</em></p></div>
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3PL
4PL
after sales Logistics
air freight
BNSF Railway
cargo
council of supply chain management professionals
CSCMP
Delcan Corporation
disposal logistics
distribution center management
distribution logistics
economic indicators
Economic Outlook
Economy
fourth-party logistics
freight
freight forwarding
Inbound Logistics
inventory
Joe Gallick
John Lanigan
Jones Lang LaSalle
Kimberly Clark
lead logistics
logistics
logistics reports
logistics trends
manufacturing
Mast Global Logistics
material handling
national press club
ocean freight
outbound logistics
packaging
Penske Logistics
ports
procurement logistics
production logistics
rail
reverse logistics
Richard Thompson
Rick Blasgen
Rick Jackson
Rick Sather
Ronald Marotta
Rosalyn Wilson
shipping
shipping containers
supply chain
supply chain reports
supply chain strategy
supply chain trends
third-party logistics
transportation
trucking
warehousing
wholesale channel
wholesalers
Yusen Logistics
CSCMP State of Logistics Report, Presented by Penske, Unveiled on June 13 in Washington, D.C.
June 11, 2012
With the supply chain serving as an important forecasting tool to gauge the health of the U.S. economy, the 23rd Annual State of Logistics Report®, introduced by the Council of Supply Chain Management Professionals (CSCMP) and presented by Penske Logistics, will make its debut on June 13 at the National Press Club in Washington, D.C.
<p>As report author Rosalyn Wilson, a transportation analyst with <a href="http://www.delcan.com/">Delcan Corporation</a> pointed out, the current business climate is a bit more bullish.</p><p>“The economy was incrementally better in 2011, but the freight industry continued to struggle with sluggish and uneven volumes,” Wilson explained. “Despite the fact that capacity was not yet a real problem, rates were up significantly in 2011.”</p><p>Here are the 2012 State of Logistics Report panelists:</p><ul class="ee-ul"> <li><strong>Joe Gallick</strong>, senior vice president of sales, Penske Logistics</li> <li><strong>John Lanigan</strong>, executive vice president and chief marketing officer, BNSF Railway</li> <li><strong>Rick Jackson</strong>, executive vice president, Mast Global Logistics</li> <li><strong>Ronald Marotta</strong>, vice president, origin cargo management, Yusen Logistics (Americas)</li> <li><strong>Rick Sather, </strong>vice president, customer supply chain North America, Kimberly Clark</li> <li><strong>Richard Thompson (panel moderator),</strong> executive vice president, supply chain and logistics, Jones Lang LaSalle</li></ul><p>This is the third year that Penske has sponsored this report. To read more about each of the panelists, please <a href="http://cscmp.org/memberonly/sol-panel.asp">click here</a>.</p><p>“Part of our mission at CSCMP is to develop and disseminate research that helps our members understand how to do their jobs better,” stated Rick Blasgen, CSCMP president and CEO.</p><p>“Knowing how logistics and supply chain costs affect and are affected by the larger economy is a key part of this understanding,” he said. “We look forward to once again working with Penske’s thought leaders to present this year’s research and translate its findings into real-world terms.”</p><p>The State of Logistics Report® has tracked and measured all costs associated with moving goods through the U.S. supply chain since 1988.</p><p>https://twitter.com/#!/PenskeNews/status/195137303851708417</p><p align="right"><em>By Alen Beljin</em></p> </div>
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3PL
4PL
after sales Logistics
air freight
BNSF Railway
cargo
council of supply chain management professionals
CSCMP
disposal logistics
distribution center management
distribution logistics
economic indicators
Economic Outlook
Economy
fourth-party logistics
freight
freight forwarding
Inbound Logistics
inventory
Jones Lang LaSalle
Kimberly Clark
lead logistics
logistics
logistics reports
logistics trends
Mast Global Logistics
material handling
national press club
ocean freight
outbound logistics
packaging
Penske Logistics
ports
procurement logistics
production logistics
rail
reverse logistics
shipping
shipping containers
supply chain
supply chain reports
supply chain strategy
supply chain trends
third-party logistics
transportation
trucking
warehousing
Yusen Logistics
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