Fear and Loathing on the Reverse Logistics Trail

 -“How I rediscovered my passion for Aftermarket Repair Service “

(with apologies to J Hunter Thompson, the Rio, and anyone else who might take offense)

Las Vegas: Rio Hotel – 2013 - At first glance, “Reverse Logistics” does not appear to rouse one’s passions as can other professions.  Wiki defines it as: "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.”  Yeah, right….can we go out and play now?

One would think that there are no rock’n’roll idols nor superstars associated with the task of handling the burning acid reflux in the supply chain, but after over 5 years of attending the Reverse Logistics Association’s  Annual Conference at the Rio in Las Vegas, I would say they are truly beginning to emerge.  Last month perhaps a thousand professionals braved tripping over walkers of elderly, Walmart-clad (ok I wear that too sometimes), gambling enthusiasts and had to breathe re-circulated second- hand cigarette smoke on our 15 minute trek to the RLA Exhibition Center.  In the Exhibition Hall were some really cool companies exhibiting – besides us of course.  There was one that makes all kinds of products out of the electronics most companies throw away, wasting nothing.  Another one has over 5,000 “how-to” repair videos on YouTube. “Why shouldn’t people know how to fix their own computers?” asks the founder.  Brilliant!  But, there we all gathered to discuss and debate “Best Practices” in those processes which prevent billions of electronic waste from winding up in cast-iron cooking pots in Africa or landfills in out-of-the-way idyllic settings in Appalachia.

This is an industry that heralds member-giants such as Intel, Apple, Dell, IBM, Samsung and Canon – who met with service providers, large and smaller (like us), to explore answers to some of the most compelling questions posed in the industry today:

“How can we derive additional revenues and profits by efficiently handling product returns?”

“What does “best in class” in Reverse Logistics really mean?”

“How do we measure Customer Satisfaction?”

The purpose of this essay is not to detail the answers to these questions (I could tell you now but then I would have to kill you, and, besides, I fully intend to explain in later blogs)  but really to applaud this industry in which my company makes its living, and to confess that after over 15 years, I have rediscovered my mojo.   As a result of the discussions undertaken in this conference, I for the first time truly recognize that the “triple bottom line” has become embraced by this industry- People, Profits, and Planet.  Sure, it’s about People (customer satisfaction), Profits (reducing costs associated with product returns),  – but most importantly it is about our Planet.   Yes, we focus on preserving our OEM customers’ customer’s brand loyalty (“hey, I sent my electric toothbrush back because it doesn’t work. I don’t want someone else’s - back!!”), and driving their costs down by reducing OBF’s and NFF’s (fancy terms, right?).  But, most important is this:   I estimate that Renova Technology, our  40 person enterprise whose core competency and focus is in circuit board repair, has repaired almost two million pounds of circuit boards -- and keeping those thousands of tons of dangerous metals out of landfills, as well as not needing to extract another 2 million pounds of natural resources, is  a major profit for our ailing Planet!

I mentioned that number to our assistant logistics manager (14 years with Renova) this morning.  She smiled wide and said “I knew that.  Why do you think I am so proud?  Now, about that raise ….”