Reverse logistics best practices in the entertainment industry.
Best Buy pays for all aspects of moving returns in the entertainment category from the store to the vendor in order to receive credit for the item. The objective for the project was to document the current return process, including physical flow, systems flow, and the costs incurred.
Collect primary and secondary data
Develop the as-is reverse logistics process
Develop gap analysis between current situation and best practices
Defined recommendations for strategy development and process improvements
To investigate the profitability of routes for which there was anecdotal evidence of unprofitability. While the client understood profit at the station level, gaining insight into cost at the shipment level remained a challenge.
Develop a methodology to allocate cost on an individual shipment basis
Apply methodology to individual shipments on a number of suspect routes
Develop an Excel-based model to provide the client with an effective pricing tool
Discovered opportunities for improving client profitability by:
Improving pricing based on shipment type and routing