Professional Documents
Culture Documents
2
CLOSED LOOP SUPPLY CHAINS
In India, used goods is a bigger market than new goods!!!
Automobiles – For every 100 new cars sold, 120 old ones are sold; (100 : 150 for
motorcycles)
Mobiles – Similar trends hold
Indian households would dispose off used goods worth 115,000 crores in 2015 (Up from
80,000 crores in 2014; 60,000 crores in 2011)
Global retails is around $12 trillion; around 5-10% is the size of the secondary market ($650
billion)
Product returns in ecommerce in India – 15 percent
Estimates suggest that by 2020 ecommerce in India would be $120 billion and around $24
billion would be returns
3
MAKING MONEY
On CarDekho.com, a BMW 7 Series (730 Ld) 2010 model that has run 40,000 km
costs Rs. 38 lakh compared with a new model that is priced between Rs. 92 lakh
and Rs. 1.9 crore.
The cost of a new Honda City (I DTEC E) is Rs. 9 lakh. A 2009 model City that has
run 60,000 km goes for about Rs. 4 lakh.
4
REVERSE SUPPLY CHAIN & POLITICS!
Source: Fortune 5
CLOSING THE LOOP
Re-Distribution
& Sales
Recovery
Sorting &
Disposition
Reverse
Logistics
Product
Acquisition
6
PRODUCT
RECOVERY
7
CLOSING THE
SUPPLY CHAIN LOOP
8
9
PRODUCT RETURNS AS A PROFIT CENTRE
Improved customer service & knowledge
10
Source: BBC
11
UNDERSTANDING THE RETURNS POLICY
Monetary leniency – Whether the entire amount is refunded or some process/restocking fee
is charged
Effort leniency – Hassle involved say for example, establishing identity, proof of purchase,
filling forms etc.
Exchange leniency – Returns yield cash, store credit, or only exchange of goods
Lenient policy increases both sales and returns – Benefits outweigh the costs