Returns Management - Building a closed loop supply chain for a customer centric and circular economy.

1. Returns Management
Building a Closed Loop Supply Chain for a Customer Centric and Circular
Economy.

2. Why worry about returns?
1
Because there are so many damn
returns in e-commerce.
Because something fundamental is
going on around us.2

3. Because something fundamental is going on around us
1. Direct-to-Customer Commerce
2. Experience- & Share Economy
3. Circular Economy
2

4. 1. Direct-to-Customer Commerce
The customer is king.

5. 1. Direct-to-Customer Commerce

6. 1. Direct-to-Customer Commerce

7. 1. Direct-to-Customer Commerce
The customer is at the steering
wheel of her shopping experience
(and supply chain).

8. 1. Direct-to-Customer Commerce

9. 2. Experience & Share Economy
Customers don’t buy
products. They buy
experiences.

10. 2. Experience & Share Economy

11. 2. Experience & Share Economy
Purchase:
1. Right product
2. Right place
3. Right quantity
4. Right price
Product:
1. Useful
2. Available
3. Sustainable
4. Fun to use
5. Easy to dispose
Buy Use
Customer Journey
1. Right time
2. Right service

12. 2. Experience & Share Economy
DeliveryPurchaseOrientation
Buy
conversion focused
End of UseAt UseStart of Use
Use
retention focused

13. 2. Experience & Share Economy
End of UseAt UseStart of Use
Use
retention focused

14. 2. Experience & Share Economy

15. 3. Circular Economy
Product value should
not get lost.

16. 3. Circular Economy
The linear economic system needs to be stopped.

17. 3. Circular Economy
Products should circulate in the production system,
like leaves do in the natural system.

18. • A circular economy could result in overall benefits of €1.8 trillion by 2030.
• By adopting circular economy principles, Europe can take advantage of the technology
revolution and increase average disposable income for EU households by €3,000, or 11%
higher than the current development path.
• This would further translate into an 11% GDP increase by 2030 versus today, compared with
4% in the current development path.
• The circular model would also benefit households in other ways. For example, compared to
the current development path, the cost of time lost to congestion would decrease by 16%
by 2030, and close to 60% by 2050.
• Carbon dioxide emissions would halve by 2030, relative to today’s levels (48% reduction of
carbon dioxide emissions by 2030 across the three basic needs studied, or 83% by 2050).
• Primary material consumption measured by car and construction materials, real estate land,
synthetic fertiliser, pesticides, agricultural water use, fuels, and non-renewable electricity could
drop 32% by 2030 and 53% by 2050, compared with today.
• 65 reviewed academic papers indicate that “existing studies point to the positive
employment effects occurring in the case that the circular economy is implemented”
3. Circular Economy

19. The Economic
System needs to
.....

20. The Economic System should be Circular
The circular economy is an economic system that
is designed to maximize reusability of products
and raw materials and minimizing value
destruction. Unlike the current linear system, in
which raw materials are converted into products to
be destroyed at the end of their life.

21. What is an Economic System?
An economy is the system of production,
distribution and consumption of scarce goods and
services in a society.

22. The Actors in the Economic System?
Production ConsumptionDistribution

23. Question
Where should transition to the Circular Economy
start?

24. Answer
Production Consumption
Distribution
Start with Production (products) and Consumption
(customers), supported by distribution (supply
chain).

25. A great opportunity for Supply Chain professionals and students
Develop a closed loop supply
chain for a customer centric
and circular economy.
Supply Chain is the enabler of the Circular Economy.

26. Reverse ChainSupply Chain
Create, Supply
and Consume
Return and Re-
Utilize
A great opportunity for Supply Chain professionals and students

27. The Reverse Supply Chain should have a dual focus
Products Customers
Returns Management

28. Customer
Service
Product
Operations
The Reverse Supply Chain should have a dual focus

29. A dual focus in different situations
End of UseAt UseStart of Use
retention focused
Use
“I don’t like it”
Commercial
Return
Service
Return
Take-Back
Return
Product
“Help, it
doesn’t work”
“I don’t use it
anymore”
Customer
Refund /
Exchange
Repair /
Replace
Reward /
Rebate
Return-to-Settlement

30. The Reverse Supply Chain should support Return Cycles
DeliverMakeSourcePlan
Start
of Use
At Use
End of
Use
Return
Commercial
Returns
Refund /
Exchange
Service
Returns
Repair /
Replace
Take-Back
Returns
Reward /
Rebate

31. The Reverse Supply Chain needs a business process
Supply Chain
Forward Reverse
Plan Source Make Deliver Return
Record-to-Report
Procure-to-Pay Order-to-Cash
Return-to-
Settlement
Business Processes

32. The building blocks of the Return-to-Settlement process
Authorization Transportation Processing Settlement1 2 3 4

33. Variation requires trade-off’s and brings complexity
B2C
B2B
POS
Drop-
off
Pickup
Fast
Slow
Central
Local
Repair
Recycle
Authorization1 Transportation2 Processing3 Settlement4
Refund
Repaired
product
Reward
Return-to-Settlement process

34. Complexity requires smart technology

35. A controlled returns process brings value opportunities
Customer Value
Sourcing Value
Environmental Value Social Value
Feedback or Information Value

36. Smart Technology

38. Stef de Bont
Build the foundation of the
Reverse Supply Chain.

39. Your Challenge
Make Logistics step up from its poor reputation.

40. Thank you for your attention!
https://12return.com
https://academy.12return.com
https://12return.com/support-program/book/
stef@12return.com | 06-28568600