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1、编号：时间：2021年x月x日书山有路勤为径，学海无涯苦作舟页码：第1页 共1页How Philips Reduced Returns FromtheNovember/December2003issueofSupplyChainManagementReviewTONYSCIARROTTASupplyChainManagementReviewNovember1,2003Theanswertoreducingthecostofreturnsdoesnotalwayslieinimprovingyourreverselogisticsoperations.AtPhilipsConsumerElect
2、ronics,thereturnsmanagementdepartmenthasfocusedonhowitcanstopreturnsbeforetheyevenenterthereversesupplychain.Bytakingpreventativestepssuchasimprovingaproductseaseofuse,enforcingcompanypolicies,andrevitalizingtheservicenetwork,Philipshascutitsreturnsbymorethan$100millionperyear.In1998,Iwaspresentedwi
3、thanopportunity:headupareturnsmanagementdepartmentwithinPhilipsConsumerElectronicsandhelpleadeffortstocontrolamajorcostdriverproductreturns.Atthattime,PhilipsConsumerElectronicshadnoreturnsmanagementdepartment,andreverselogisticswasnotyetpartofthelanguageofmostmanufacturers.ButmanagementandKenGoins,
4、thevicepresident/generalmanagerofPhilipsServiceCompanywhoapproachedmewiththeopportunity,recognizedthatthecompanywasfacingrelativelyhighreturnrates.Theimpactofthosereturnsonthebottomlinewassignificant,amountingtotensofmillionsofdollarsinlosses.Philipsmanagementwasunderpressuretoreducethecostofreturns
5、.Theyrealizedthatthecompanyneededtodevelopacorecompetencyinreturnsmanagement,whethertheactualprocesseswerehandledinhouseorviaoutsidepartners.Managementbelievedthatitneededadepartmentwithadedicateddirectorandfocusedstafftoaccomplishthesegoals,hopingthatsuchadepartmentwouldenduppayingforitselfinthepro
6、cess.WhenKenapproachedme,Iwasworkingintheproductmarketinggroupafteradecadeinsaleswithregionalandnationalaccounts.Mybackgroundwasnewforthereturnsmanagementrole.Normally,thecredit,finance,orservicegroupswithinmostcompanieshandlereturns.ButKenunderstoodthatreturnsreallyarereversesales,andtheyareoftenca
7、usedbyproduct-marketingdecisions.Aswebegantostudythesituation,wediscoveredareturnsenvironmentthatwasoutofcontrol.Ingeneral,returnsintheUnitedStateshavebeenincreasingduetoatakeitbackculture,propagatedbyretailerswithliberalandalmostunlimitedreturnpolicies.Retailerswerefoundtobegivingrefundstoconsumers
8、overtwo-thirdsofthetime.Inmanyofthosesituations,consumersdidnothaveacopyofthesalesreceiptfortheirpurchases.Storepoliciesthatwereinplacewerenoteasytoenforce,makingitdifficulttoreduceimproperproductreturns.Theriseofreturnswasfurtherfueledbytheincreaseinproductsthatcouldnotbeservicedinthehomecoupledwit
9、hthedemiseoftheindependentserviceproviderswhoperformedin-homerepairs.Mostconsumerelectronicscompaniesviewedreturnsasthecostforthesteadysalesgrowthinnewretailchannels.Butalongwiththeincreaseinoverallreturnswasanotherdisconcertingstatistictherateofproductsreturnedwithnodefectfound(NDF)wasveryhigh,aver
10、agingmorethan70percentforconsumerelectronics,morethan85percentforPCproducts,andevenover90percentforsomesmallappliances.Retailersandmanufacturerswerepayingsignificantreverselogisticscoststomoveproductsthatwerenotdefective.ThesituationatPhilipsreflectedthisexternalenvironment.Becausewehadnoonefocusedo
11、nreturnsandnoclearreturnspolicyorprocedures,Philipshaddevelopedacultureoftakeanythingbackfromanybodyanytime.Thetotalcostofreturnshadneverbeenexposedtotheproductbusinessownersorevenidentifiedcollectivelyforthecompany.Philipshadneverattemptedtoimplementreturnssolutionsacrossdepartmentlinesorbyworkingw
12、ithretailers.Thislackofattentiontoreturnswashurtingus:Until2000,thereturnsratesatPhilipswereevenhigherthantheindustryaverage.Addingtoourproblems,manymajorretailershadbegunthepracticeofdeductingforreturnsuponshipmentbacktovendors.Theclaims,counterclaims,andreconciliationprocessesbecametime-consuming,
13、manual-intensivenightmaresformanufacturerslikeus.Finally,thesecondarymarketforthesegoodsintheUnitedStateswascostlyforPhilips.ManyoftheliquidatorsthatPhilipsdealtwithhadquestionablefinances.Additionally,inthesecondarymarketwewereexperiencingpoorrecoveryonthefactorycostsofourproducts.Asanexample,forDVDssoldatliquidators,Philipswasonlyrecovering20to30centsonthedollar.Clearly,changesneededtobemade.Philipsfirstneededtoanalyzeitsreturnsnumberstounderstandtheirsizeandtotalcosttot
