What is cross-docking reclamation?A major retailer has recently opened a cross-docking reclamation facility. The purpose of this facility is to recall product from their trading outlets to a central point from which the manufacturer or his agent can collect the consolidated returns issued along with the retailers’ consolidated claim request.
Cross-docking reclamation... Is it a real value proposition?• Are you still required to pass credit on your unsaleables?
• Do you still have to dispose of your unsaleables product?
• Will cross-docking reclamation increase or decrease the cost to company of processing trade unsaleables?
Important Questions to ask yourself...
1. How does the management of your trade unsaleables impact on your company’s risk profile?a. Is there a value proposition to controlling the initiating process (authorisation of unsaleable uplifts)?
b. Will cross-docking reclamation increase, decrease, have no impact on unsaleable trade return volumes?
c. Will the facility be used to return saleable returns?
2. How does the process design affect cost?a. What will the impact be on administration costs of unsaleable returns
b. What will the impact be on handling and processing costs of the physical stock
3. Does the proposed reclamation centre offer product disposition services?
4. Is swell allowance an option?Process design is a critical component in the overall cost. The contractual relationships within your supply chain also have an impact. If a process change does not realise a quantifiable cost saving with your supply chain partners due to contractual issues, the question of process design savings becomes academic.
• Does your business understand its existing reverse logistics costs?
• What will the effects be on the business costs of changing the reverse logistics processes?
• Should your business wish to understand the costs and effects of process changes in more detail...CONTACT US