




已閱讀5頁(yè),還剩16頁(yè)未讀, 繼續(xù)免費(fèi)閱讀
版權(quán)說(shuō)明:本文檔由用戶提供并上傳,收益歸屬內(nèi)容提供方,若內(nèi)容存在侵權(quán),請(qǐng)進(jìn)行舉報(bào)或認(rèn)領(lǐng)
文檔簡(jiǎn)介
How Philips Reduced Returns FromtheNovember/December2003issueofSupplyChainManagementReviewTONYSCIARROTTASupplyChainManagementReviewNovember1,2003Theanswertoreducingthecostofreturnsdoesnotalwayslieinimprovingyourreverselogisticsoperations.AtPhilipsConsumerElectronics,thereturnsmanagementdepartmenthasfocusedonhowitcanstopreturnsbeforetheyevenenterthereversesupplychain.Bytakingpreventativestepssuchasimprovingaproductseaseofuse,enforcingcompanypolicies,andrevitalizingtheservicenetwork,Philipshascutitsreturnsbymorethan$100millionperyear.In1998,Iwaspresentedwithanopportunity:headupareturnsmanagementdepartmentwithinPhilipsConsumerElectronicsandhelpleadeffortstocontrolamajorcostdriverproductreturns.Atthattime,PhilipsConsumerElectronicshadnoreturnsmanagementdepartment,andreverselogisticswasnotyetpartofthelanguageofmostmanufacturers.ButmanagementandKenGoins,thevicepresident/generalmanagerofPhilipsServiceCompanywhoapproachedmewiththeopportunity,recognizedthatthecompanywasfacingrelativelyhighreturnrates.Theimpactofthosereturnsonthebottomlinewassignificant,amountingtotensofmillionsofdollarsinlosses.Philipsmanagementwasunderpressuretoreducethecostofreturns.Theyrealizedthatthecompanyneededtodevelopacorecompetencyinreturnsmanagement,whethertheactualprocesseswerehandledinhouseorviaoutsidepartners.Managementbelievedthatitneededadepartmentwithadedicateddirectorandfocusedstafftoaccomplishthesegoals,hopingthatsuchadepartmentwouldenduppayingforitselfintheprocess.WhenKenapproachedme,Iwasworkingintheproductmarketinggroupafteradecadeinsaleswithregionalandnationalaccounts.Mybackgroundwasnewforthereturnsmanagementrole.Normally,thecredit,finance,orservicegroupswithinmostcompanieshandlereturns.ButKenunderstoodthatreturnsreallyarereversesales,andtheyareoftencausedbyproduct-marketingdecisions.Aswebegantostudythesituation,wediscoveredareturnsenvironmentthatwasoutofcontrol.Ingeneral,returnsintheUnitedStateshavebeenincreasingduetoatakeitbackculture,propagatedbyretailerswithliberalandalmostunlimitedreturnpolicies.Retailerswerefoundtobegivingrefundstoconsumersovertwo-thirdsofthetime.Inmanyofthosesituations,consumersdidnothaveacopyofthesalesreceiptfortheirpurchases.Storepoliciesthatwereinplacewerenoteasytoenforce,makingitdifficulttoreduceimproperproductreturns.Theriseofreturnswasfurtherfueledbytheincreaseinproductsthatcouldnotbeservicedinthehomecoupledwiththedemiseoftheindependentserviceproviderswhoperformedin-homerepairs.Mostconsumerelectronicscompaniesviewedreturnsasthecostforthesteadysalesgrowthinnewretailchannels.Butalongwiththeincreaseinoverallreturnswasanotherdisconcertingstatistictherateofproductsreturnedwithnodefectfound(NDF)wasveryhigh,averagingmorethan70percentforconsumerelectronics,morethan85percentforPCproducts,andevenover90percentforsomesmallappliances.Retailersandmanufacturerswerepayingsignificantreverselogisticscoststomoveproductsthatwerenotdefective.ThesituationatPhilipsreflectedthisexternalenvironment.Becausewehadnoonefocusedonreturnsandnoclearreturnspolicyorprocedures,Philipshaddevelopedacultureoftakeanythingbackfromanybodyanytime.Thetotalcostofreturnshadneverbeenexposedtotheproductbusinessownersorevenidentifiedcollectivelyforthecompany.Philipshadneverattemptedtoimplementreturnssolutionsacrossdepartmentlinesorbyworkingwithretailers.Thislackofattentiontoreturnswashurtingus:Until2000,thereturnsratesatPhilipswereevenhigherthantheindustryaverage.Addingtoourproblems,manymajorretailershadbegunthepracticeofdeductingforreturnsuponshipmentbacktovendors.Theclaims,counterclaims,andreconciliationprocessesbecametime-consuming,manual-intensivenightmaresformanufacturerslikeus.Finally,thesecondarymarketforthesegoodsintheUnitedStateswascostlyforPhilips.ManyoftheliquidatorsthatPhilipsdealtwithhadquestionablefinances.Additionally,inthesecondarymarketwewereexperiencingpoorrecoveryonthefactorycostsofourproducts.Asanexample,forDVDssoldatliquidators,Philipswasonlyrecovering20to30centsonthedollar.Clearly,changesneededtobemade.Philipsfirstneededtoanalyzeitsreturnsnumberstounderstandtheirsizeandtotalcosttothecompany.Wealsohadtounderstandtheconsumerandretailerenvironmentinordertomakeimprovements.Thisinvolvedresearchingconsumersreasonsforreturningproductsparticularlythosewithoutdefects.Finallyaparadigmshiftwasneededinmanyareas.Thatis,weneededtotakeproactivesteps,bothinternallyandincooperationwithourretailpartnersandserviceproviders,toaddresstherootcausesofreturns.UnderstandingtheProblem:MeasuringReturnsEveryonerecognizestheaxiomthatwhatgetsmeasured,getsdone.Forthoseofusinreturnsmanagement,thismeantrealizingthatakeytosolvingthereturnsproblemlayinhavingacommonsetofmeasurementswiththerightlevelofdetail.AtPhilips,themainproblemwasalackofconsistentmeasurements.ReturnsweremeasuredanddefineddifferentlyintheUnitedStatesthanintherestoftheworld,anddifferentpartsofthePhilipsorganizationuseddifferentITsystemstomeasurethem.Furthermore,wecouldnotagreeonwhattimeperiodtouse(yeartodate,monthly,rolling12month,delayedmeasureforretaillag,etc.)orhowtoclassifythereturns(carrierdamage,stockbalance,defectives,warehouseerrors,service,etc.).Thesedifferencesinmeasurementledtomisleadingresults.Finally,in2001,aPhilipscross-departmentalteamestablishedsomemeasurementstandards.Theteamdecidedtoseparatereturnsidentifiedasdefectivefromreturnsforallotherreasons(forexample,carrierdamage,stockbalancing,andordererrors).Theyalsoagreedtousearolling12-monthcomparisonovertwoperiods.Thismeant,forexample,thatreturnsfromonedealerforSeptember2002toAugust2003wouldbecomparedtoreturnsforthatsamedealerfromSeptember2001toAugust2002.Theteambelievedthatthiswouldprovidethemostrealisticviewofdealerreturns,whicharelessaffectedbyseasonalitytrends.Returnreportsarenowissuedbydealer,byproductcategory,andbymodel.(AnexampleofatemplateforsuchareportisshowninExhibit1.)Tokeepthereturnnumbersinperspective,wechartthemagainstgrosssalesandtrendsinreturnandsalesratesfortheentirecompany,whichwouldshowanyspecificincreasesordecreases.Thereportsalsoincludeatargetpercentagereductionandareturnpercentratecolumntokeepalleyesonourgoals.MyroleinreturnsmanagementforPhilipsrequiresthatIdisseminatethisreturnsinformationtothekeysales,service,finance,andproductgroups,includingseniormanagement.ButIunderstandthatinformationaloneisnotknowledge.Forthisreason,eachsummaryreviewhastoincludekeyreturnsissuesbymodel,group,ordealer,alongwithmyrecommendationsorupdatesofactivitiesforimprovement.Theconsistencyofthereportsplayedakeyroleingettingthekeyplayerstoacceptboththereportsthemselvesandtheresponsibilityforreturns-reductiongoals.Productmanagershadtoseethesameresultsfortheircategoriesasthesalesgroupssawfortheirtotals.Ournewlyinstalledinformationsystem(SAP)enabledustoprovidethislevelofconsistency.AnyoneinPhilips,anywhereintheworld,whoistrainedtoaccessthereportswillseethesamedata.SAPalsoenabledourreturnreportstodrilldowntomodel-anddealer-leveldetail.ThisisamassivereportforacompanylikePhilips,whereweshipover10millionboxesperyear.Inaddition,thebuilt-inflexibilityofSAPstillallowsustogeneratesomereportsthattrackreturnsatthemonthlyandyear-to-datelevel.Thesereportsaregiventogroupssuchasfinanceandlogisticsthatneedtheinformationpresentedthiswayforforecastingandwarehouseplanning.GettingInsidetheConsumersHeadUnderstandingthereturnssituationdependedonknowingnotonlyhowmanyreturnswewerehandlingbutalsowhyproductswerebeingreturned.In2001,PhilipswasabletoworkwithanationalretailertosurveyitscustomerswhohadboughtandreturnedselectedPhilipsproductswithhigherthanbudgetedreturnrates.Theretailersmarketresearchgroupcontactedsome400-plusconsumerswithanagreed-uponlistof25questionsabouttheirshoppingandreturnexperience.Togetparticipationandhopefullytogainmoreaccuratefeedback,weofferedgiftcertificatesfortheseextendedphoneinterviews.Surprisingly,morethan75percentoftheconsumersadmittedknowingtheirreturnedproductswerenotdefective.Thesurveyidentifiedtheprimaryreasonforthereturnsasmisinformationatpointofsale.Thesecondaryreasonsrelatedtodifficultiesinhookup,use,oroperation.Anotherdisconcertingstatisticwasthattheretailergavecashorcreditrefundsfortwo-thirdsofthereturns.ThisstatisticwasparticularlytroublingtoPhilipsbecauseinthemajorityofthesecasestheretailerdidnotusearepairserviceprovider.Insteadmostofthereturnsweresentbacktothemanufacturersasdefective.Asreturnsincreased,carriervolumegrew.Inresponsetothatincrease,wehadbeguntodevelopreverse-logisticsprocessesthatmademovingthesegoodsbackthroughthesupplychainmoreefficient.Yet,whileefficientreverselogisticshelpedminimizeourlosses,theydidnothingtoaddresstheprofitsthatwerestillbeinglostateverypointofthereturnsprocess.Basedonthesurveyresults,Philipsandtheretailerrecognizedthatreturnswerenottiedtotheactualqualityoftheproduct.Instead,manyoftheseissueswererelatedtoproductpackagingnotclearlyrepresentingtheproductortheproductsoperatingrequirements,suchassubscriptionservices.Anadditionalfactorwasinadequatetrainingofretailsalespeopleforcommunicatingproductfeaturesandbenefitstotheconsumer.AtPhilips,theresearchalsohelpedustounderstandbetterthereasonsfortheincreaseincallcentertimespentonmanyofournew,digitalproducts,suchashometheaters,satellitesystems,digitalvideorecorders,andevenDVDplayerswithoutstandardantennajacks.Thecomplexityandtechnicalproblemswiththeseproductswasfurtherincreasedbyproductsfromonehardwaremanufacturerhavingtoworkwithsoftwareorservicesfromadifferentprovider,suchasTiVo,AOL,orWebTV.OnedigitalInternetdevicewiththisdualownershiphadreturnratesofmorethan25percentandano-defect-foundrateofmorethan90percent.Suchresultspointtousabilityproblemsandlackofproduct-packagingclarity.ThesurveysubstantiatedmanyintuitivebeliefsfortheretailerandforPhilips.Itwasobviousthatstepsneededtobetakentoimproveproductclarity,usability,andinteroperability.ButtherealchallengewashowtocorrecttheperceivedentitlementamongAmericanconsumersforreturningpurchasesbacktoretailers.ThisphenomenonismuchmoreprevalentintheUnitedStatesthaninothercountries.Inmostothercountries,consumersareencouragedtorepairdamagedproductsoracceptalternativesolutions,suchascontactingthemanufacturerdirectly,insteadofreceivingcashrefundsforreturns.ButintheUnitedStates,Philips(andotherglobalcompanies)havetofindwaystostartworkingdifferentlywithretailerssothattheycanreducetheflowofgoodsinthereversesupplychainespeciallythoseproductsthatarenottrulydefective.Ifwedont,theestimatedcostsforbothsidesareenormous.ManufacturersSteps:ImprovingtheOut-of-the-BoxExperienceBasedonthisresearch,weidentifiedfactorsatthemanufacturing,retail,andservicesupplychainthatwerecontributingtothehighrateofreturnsandlookedforpotentialactionstotaketoalleviatethem.Oneofthemainmessagesofthesurveywasthatitwasntpoorproductqualitythatwasdrivingreturns,butthecomplexityoftheproduct.Internally,atPhilips,werecognizedeaseofuseasthenextbarrierforconsumersandbeganworkingtoimprovetheout-of-boxexperiencefortheconsumer.WehaveincreasedservicesupportwithWebandcallcenterenhancements,suchasFAQs,hook-updownloads,andfreeproductupgradesforDVDandotherdigitalproducts.Additionally,Philipsisnowincludingstopsheetsintheboxwiththeproduct.Thesesheetsareemblazonedwithastopsignanddirecttheconsumertocontactthemanufacturerfirstbeforetakingtheproductbacktotheretailstore.Alloftheseactionshavehelpedreducereturnsbyencouragingtheconsumertocontactthemanufacturertotrytosolvetheproblem.Philipsisalsoexaminingwaystoincreaselocalorcentraldepotrepairandoffereasyexchangeprograms.Undersuchaprogram,Philipswouldpayretailersorservicersahandlingfeetosendreturnedproductsdirectlybacktous.Theseprogramsmightpossiblyincludeprovidingdrop-offcentersforreturnsatplaceslikeStaplesorMailBoxesEtc.orprovidingUPScall/shiptagsforwarrantyservice.Inadditiontotheseefforts,PhilipsjoinedtheEaseofUse(EOU)Roundtable()in2002.TheEaseofUseRoundtableisaPCandconsumerelectronicsindustryassociationcommittedtoimprovingtheconsumerexperiencewithhigh-techproducts.Participantsincludeleadingmanufacturersandretailers.Intelfoundedtheroundtablein1998whenindustrydataindicatedthatthenumber-tworeasonpeoplewerenotbuyingPCswasbecausetheyweretoohardtouse.TheEaseofUseRoundtablelooksathowcompaniescanbasenewproductcreation,design,andoperabilityonthedesireduserexperienceratherthandevelopingatechnologyandlookingathowtosellitafterwards.Forexample,high-techcompaniesmaylookatdesigningprintersandcomputerssothatawhenaprinterishookeduptoacomputer,thecomputerrecognizesandsetsupthesoftwareneededforittowork.Thisisaccomplishedthroughusinghuman-factorengineering(HFE)agrowingdisciplineinthePCandconsumerelectronicsindustriestocreateInitialExperiencePredictors(IEPs).AnInitialExperiencePredictorisachecklisttoolthatprovidesthedesignteamwithaseriesofquestionsthathelppredictwhatausersout-of-boxexperiencewithaproductwillbe.TheIEPwasinventedbyIntelandfurtherdevelopedbytheEOURoundtable.Itcanbeusedduringproductdevelopmenttotaketheendconsumersneedsintoaccountwhendesigningtheoperation,packaging,andinstructionsforuseofanewproduct.Doingthisshoulddecreasethenumberofno-defect-foundreturnsaswellasreducingsupportcentercallsandimprovingcustomersatisfaction.Suchimprovementswilladdsignificantlytothebottomlineforallmanufacturers,avoidunnecessaryreturnsatretail,andlowercallcenterandothersupportcostsdrivenbyproductcomplexity.Allofthiswillhelpexpandthemarketforeasier-to-usePCandconsumerelectronicsproducts.Yet,whilethereismuchpotentialinusinghuman-factorengineeringandInteractiveExperiencePredictors,roomforimprovementstillexists.Philipshasbegunusingthesetechniquesindesigningitsproductsbutwithvaryingdegreesofsuccess.Whilereturnshavedecreased,wehavefounditdifficulttoaccountfordifferencesinhowconsumersaroundtheglobeapproachelectronicproducts.EOURoundtablemembersalsoparticipateinsettingindustrystandardsforusability.TheEOUalsopublishesguidelinestohelpdevelopmentteamsproducedesignenhancementsthatreducethesetuptimefornewcomputeroperatingsystems.TheEaseofUseRoundtableguidelinesandwhitepapershavehelpedthehigh-techindustry,includingPhilips,developandexpandtheuseofquicksetupguidesandreduceover-designedownersmanuals.Manufacturers,suchasPhilips,thatadopteaseofuseasthenextfrontierbeyondqualitywillwinattheretailandconsumerlevel.RetailerSteps:NewPoliciesandTechnologiesRetailers,fortheirpart,alsohavebeenmakingchangestoreducereturnsandtheirreverselogisticsflow.BasedonPhilipsresearch,someretailershaveimprovedstoresignstoincludeimportantinformation,suchassubscriptionservicefeesandminimumsystemsrequirements,atthepointofsale.RetailersalsoaretrainingtheirsalesassociatestoprovidecustomerswithmoreinformationaboutproductoperationandsubscriptionservicefeesforsuchthingsassatelliteTV.Additionally,inthelasttwoyears,retailershavemadeanefforttogainmorecontrolofreturnsfromconsumers.Someoftheseeffortssimplyinvolveenforcementofpreviouslyexistingreturnpolicies.Manyretailers,suchasBestBuy,nowposttheirreturnpoli
溫馨提示
- 1. 本站所有資源如無(wú)特殊說(shuō)明,都需要本地電腦安裝OFFICE2007和PDF閱讀器。圖紙軟件為CAD,CAXA,PROE,UG,SolidWorks等.壓縮文件請(qǐng)下載最新的WinRAR軟件解壓。
- 2. 本站的文檔不包含任何第三方提供的附件圖紙等,如果需要附件,請(qǐng)聯(lián)系上傳者。文件的所有權(quán)益歸上傳用戶所有。
- 3. 本站RAR壓縮包中若帶圖紙,網(wǎng)頁(yè)內(nèi)容里面會(huì)有圖紙預(yù)覽,若沒(méi)有圖紙預(yù)覽就沒(méi)有圖紙。
- 4. 未經(jīng)權(quán)益所有人同意不得將文件中的內(nèi)容挪作商業(yè)或盈利用途。
- 5. 人人文庫(kù)網(wǎng)僅提供信息存儲(chǔ)空間,僅對(duì)用戶上傳內(nèi)容的表現(xiàn)方式做保護(hù)處理,對(duì)用戶上傳分享的文檔內(nèi)容本身不做任何修改或編輯,并不能對(duì)任何下載內(nèi)容負(fù)責(zé)。
- 6. 下載文件中如有侵權(quán)或不適當(dāng)內(nèi)容,請(qǐng)與我們聯(lián)系,我們立即糾正。
- 7. 本站不保證下載資源的準(zhǔn)確性、安全性和完整性, 同時(shí)也不承擔(dān)用戶因使用這些下載資源對(duì)自己和他人造成任何形式的傷害或損失。
最新文檔
- 畜牧資源利用與疫病防控責(zé)任協(xié)議
- 營(yíng)銷渠道拓展合作合同內(nèi)容
- 行政管理中員工行為的心理學(xué)分析題及答案
- 游戲行業(yè)游戲引擎優(yōu)化方案
- 施工質(zhì)檢規(guī)范試題及答案
- 行政管理心理學(xué)與員工心理契約的關(guān)聯(lián)研究試題及答案
- 2025關(guān)于餐廳轉(zhuǎn)讓合同的范本
- 2025年心理學(xué)學(xué)習(xí)方法試題及答案
- 2025年建筑工程考試的項(xiàng)目管理試題及答案
- 行政管理心理學(xué)實(shí)踐案例分析試題及答案
- 圍術(shù)期室性早搏處理
- 違反公務(wù)用車管理制度談心談話記錄內(nèi)容
- 《心理健康教育》課件-關(guān)愛(ài)心靈擁抱陽(yáng)光
- 辦理證件協(xié)議書
- PAC(流產(chǎn)后關(guān)愛(ài))項(xiàng)目之流產(chǎn)與避孕培訓(xùn)課件
- 腸道疾病的診療培訓(xùn)課件
- 山東省施工現(xiàn)場(chǎng)監(jiān)理表格目錄及格式匯編
- 山西煤炭運(yùn)銷集團(tuán)三元石窟煤業(yè)有限公司礦山礦產(chǎn)資源開發(fā)利用、地質(zhì)環(huán)境保護(hù)與土地復(fù)墾方案
- 團(tuán)隊(duì)項(xiàng)目任務(wù)完成進(jìn)度跟進(jìn)表模板
- 山東省應(yīng)急管理普法知識(shí)競(jìng)賽參考題庫(kù)-中(多選題)
- 色彩與服裝色彩搭配
評(píng)論
0/150
提交評(píng)論