reverse logistics @ circuit city

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to others without express authorization of Circuit City Stores, Inc. Copyright© 2007 Circuit City Stores, Inc. All Rights Reserved.

Reverse Logistics @ Circuit City

Copyright© 2007 Circuit City Stores, Inc. May not be used, copied, or distributed without permission. All Rights Reserved.

What is Reverse Logistics?

• Management of:– Return to Vendor– Risk Recall– Liquidation– Distressed Inventory– AS/400 Product Disposition Information– Returns Inventory Management Reporting– Consumer Electronics Recycling– Rechargeable Battery and Cell Phone Recycling– Traffic Administration


Our Concept of Reverse Logistics

• Begins when our customer enters the store with a return…

• …ends with reconciliation between Vendor and Merchandise Payables

• And EVERYTHING in between!


Who are our Customers?

• Vendor Relations• Merchandise Payables• Logistics• Distribution• Inventory Accounting• Inventory Management• Executive• Financial Planning & Analysis• Home Delivery• Advertising• IT• Store Directors• Customer Service Associates• Product Flow Team• Operations Managers

• Internal Audit• Data Management Group• Merchandising• Store Operations• Firedog• Asset Protection• Business Development• Circuit City Direct• Corporate Communications• Service• The City• The Source• Training


Who is Reverse Logistics?

Vice PresidentDistribution

GM’s (6)Ric Spicer, Manager

Reverse Logistics

PRC ManagersAsst. Manager.

InformationAsst. Manager,

Field OperationsAsst. Manager,

CommunicationsManager,

Liquidation

GM’sArdmore, OKBethlehem, PA/Mid-AtlanticGroveland, FLIndustry,Walnut, CALivermore, CAMarion, IL

PRC ManagersArdmore, OKBethlehem, PAGroveland, FLIndustry, CALivermore, CAMarion, IL


What do we handle?


How much do we handle?

• 13.6 million units– From Monster Cable to Monster TVs…

• $500+ million dollars of product value


Consumer Returns to Vendor

• 100% Credit from vendor

• Creates Open to Buy for New Product Purchases

• Reverse Logistics acts as a liaison between Merchandising, Vendors and the Product Returns Center


Information Support

• Returns Destination – Maintenance of the Return to Vendor system in the AS/400. These screens feed to all POS systems and provides Store Associates with direction for customer returns – Return to Vendor (RTV), Service or Liquidation.

• Return Authorization Management – Request and follow up on aging Return Authorization requests on behalf of the PRC’s to ensure returns move as quickly as possible.

• Scheduled Reporting:– RTV and RR Aging– Sales vs. Returns– Top 10 Returns Vendors– RTV Shipping– PRC Overage/Shortage– PRC Productivity


Risk Recall

• A Risk RecallRisk Recall (RR) is used to bring back all of the inventory of a particular model from all stores or select stores for return to vendor, vendor-funded destruction or liquidation. Risk recalls are also used to bring back product that has been proven to be defective or hazardous to the consumer.

• Scheduled with Product Flow Team hours assigned.

• Merchants “Opt In” to request product returns.


Asset Recovery

• Out of Program Product is identified by the Life Cycle Management Team and approved for write-off. A risk recall is issued, and product is sold to a third party.

• Non-productive inventory can be recalled for sale to a third party, provided prior authorization is given for use of the Markdown/OBS account.

• Product also may be destroyed at the PRC, eliminating additional handling and freight costs.


Current Initiatives

• In Store product inspection

• Daily PRC Productivity information

• Parking Lot and In Store Consumer Electronics Recycling Events

• Development of HighJump PRC application