“Returns are a major headache for Retailers and our RVCF members, and how returns are managed have a significant impact to sales, conversions, and a retailer’s profit margin.
SOUTHBOROUGH, Mass. (PRWEB) January 02, 2020
In recognition of National Returns Day, Newmine is pleased to extend our collaboration with The Retail Value Chain Federation (RVCF) to launch a new Product Returns Council focused primarily on Returns Prevention (Reduction), Handling, and Resolution. The key foundational areas the Product Returns Council will be exploring in 2020 include:
- Review of Return Policies, Reason Codes, and EDI transactions associated with Returns
- Review of processes and technology that have proven to reduce consumer returns
- Review of how returns are managed and handled, including the cost of processing returns
“Returns are a major headache for Retailers and our RVCF members, and how returns are managed have a significant impact to sales, conversions, and a retailer’s profit margin. Some online retailers and sectors suffer more than others, but the new Product Returns Council is being formed to address the returns challenge and better understand the impact of returns to the bottom line,” says RVCF Founder, Kim Zablocky.
Retailers have seen their bottom lines erode as skyrocketing return rates have impacted all facets of the business: From operational, to supply chain and inventory, to customer experience. The new Product Returns Council will include motivated industry leaders within eCommerce, Supply Chain, Merchandising, and Distribution and is open to all RVCF Retailers, Brands, and Suppliers.
The Product Returns Council is being sponsored by retail commerce optimization firm, Newmine. During the fourth quarter of 2019, Gartner recognized Newmine as a 2019 Cool Vendor in Supply Chain Management Technologies. “2020 is the year of Returns Reduction," says Navjit Bhasin, CEO and Founder of Newmine. “We have applied Artificial Intelligence and Machine Learning in a very pragmatic way to identify the root cause of consumer returns and help retailers take the necessary actions to reduce the risk of lost sales and the potential reward is significant. Every $1 M in reduced returns, contributes $0.5 M to the bottom line.”
A supply chain leader from an American office supply fortune 500 Retailer attended the RVCF Spring 2019 conference with the singular purpose of identifying a returns reduction technology and platform that could help their organization identify and prioritize return reduction opportunities. According to the leader of that returns reduction initiative: “Chief Returns Officer gives us an enterprise wide view of the return landscape and is a keystone to the cross-functional relationships required for businesses to handle returns. The Chief Returns Officer tool, and furthermore the support team at Newmine helps to tie everything together and brings our returns story to life where basic transactional data could not.”
Apparel retailers face a unique set of challenges. Consumers are turning their bedrooms into their fitting rooms, leading to a growing need for product refurbishment, as well. Once an item is returned to the returns center, the processes required to restore return apparel items to saleable condition—or “first quality” status—is not well understood. According to Barry Graff, COO of Alpha Mills, "For soft goods, product is returned from the consumer in various conditions. Sometimes damaged to various levels, sometimes in the same condition as shipped. But, most of the time, in a condition between the two, where a few dollars of handling can restore the product to a condition that can be sold at ‘first quality.’ In our experience well over 90% of the items can be brought to that condition. Fragrance, pet hair, human hair, and other odors account for most of the issues that can be resolved in the reconditioning process.”
Retailers who are interested in how to apply technology to reduce return rates can stop by Booth 7114 in the Startup Zone at the NRF Big Show to visit Newmine. If you are interested in learning more about joining the 2020 Product Returns Council, please contact Susan Haupt or Kim Zablocky.
The Retail Value Chain Federation (RVCF) is a neutral, independent retail organization that facilitates trading partner collaboration to enable industry wide growth and profitability. We promote best practices, industry initiatives and collaborative solutions that make it possible for retailers and suppliers to optimize supply chain operations and meet the ever-increasing expectations of the end consumer. RVCF draws participation from both retailers and merchandise suppliers along with the service providers that support them. For more information, visit http://www.rvcf.com.
Newmine was established in 2011 as a highly focused retail commerce optimization firm. Comprised of former retail and supply chain executives with deep experience in retail strategy, operations, and technology, Newmine’s vision is to ensure retailers thrive in a transforming world. In addition to their operations and technology consulting practice, Newmine seeks to disrupt the returns management market with AI-driven returns reduction solutions. Newmine’s Chief Returns Officer® is an AI-powered platform that gives retailers a holistic view of integrated returns-related data from across the enterprise, prescribes corrective actions, and enables collaboration. Companies using Chief Returns Officer® reduce return rates and improve their EBITDA. For more information, visit http://www.newmine.com.
About Alpha Mills
Alpha Distribution Solutions is the premier apparel distributor on the East Coast, with sophisticated programs available to assist you in taking maximum advantage of your major retailer apparel and consumer goods supply contracts. In fact, over the past few years our clients have been a repeat recipient of Wal Mart’s Vendor of the Year for their product category. We also work with JC Penney, Sears, Target, and other major retailers. For more information, visit http://www.alphadistsol.com