CE Committee PresentationMarch 27, 2013
Agenda
#1(Coach / Paul Baum) Rules of the presentation to make it a great experience for all!
- Our Core Mission is to promote experience sharing within a trusted, safe peer to peer environment.
- There are No boundaries here - We are all here to help the presenter and share with the committee our first party experiences.
- Please keep to the topic and please spend no more than 5 minutes in sharing your experience unless the Presenter allows further discussion, No Rambling rule applies!
#2 (Presenter / Chris Galletto) Communication Starter:
“Tell me about a time when you were building a set of metrics to influence the right internal and external reverse logistics behavior.”
My single, most important core issue or core challenge is…
Establishing the right package of metrics to measure reverse logistics performance and to drive improved internal/external behavior
Background:
What do you do for OMX?
•Senior Manager of Reverse Logistics
•Reverse Logistics operations and strategy across all channels (Retail, B2B, Digital) and all product types (electronics, supplies, furniture, etc.)
•Brand new to the role (2 months), have been working on related projects for just over one year
What are you tasked with?
•Establishing a set of metrics with baselines and targets to monitor reverse logistics performance. Includes internal, OEM, and vendor metrics.
How does it make you feel?
•Challenged but excited
Future Options:
•Focused on data visibility first – IT project that will provide accessibility to new data
•Requesting existing data from Supply Chain Analytics team
**What data should I be requesting? (Depends on what metrics)
#3 (Coach / Paul Baum) Restate purpose of presentation and what types of experiences and stories are wanted by the Committee
How to create the right package of metrics for internal behavior?
#4 (Presenter / Chris Galletto ): Presenter Focus
Challenges around data visibility
•Example: Gap between Point of Sale (POS) Return Rate vs. Return to Vendor quantities. Why?
Did stores wait too long before requesting RA?
Are there differences between OEMs? Industries? Are some OEM terms setup for failure with no chance for us to get it back in time?
What are we incentivized to do based on our terms? What should we be incentivized to do? Does it matter to the stores?
•Example: Gap between vendor measurements and OMX measurements.
When we don’t return to an OEM, OEM tells us we did a great job. Not great if the stores just didn’t execute well and couldn’t get product back in time. Only great if the return rate was reduced, which we don’t actively influence.
How do Retailers and OEMs align goals and metrics? Today, great performance for Retailer can be bad for OEM and vice versa.
Reverse Logistics Scorecards (for Retailer, OEM, Vendor, etc.)
•What key metrics do you have in place?
•How did you decide on those metrics?
•What behavior or benefits have you been able to drive as a result of the metrics you put in place?
•How are you measuring your own performance? To you have targets for a “good year?”
•How are you measuring OEM performance? Is there feedback when there are return spikes to investigate and take corrective action? Do you have joint goals and targets?
•How to you measure Remanufacturer/Remarketer for their ROI sales performance?
•How have you benchmarked against others? Different baselines by industry, channel (e.g. Retail, B2B, Online), and category?