Reverse Logistics Optimization

Ascend into the future of prosperity

Executive Summary

OBJECTIVES KEY QUESTIONS RECOMMENDATIONS KEY QUESTIONS RECOMMENDATIONS

We have planned a wholesome

Inefficient uncaring methods How to develop a
What the reasons reverse supply to ensure speedy
with regards to inventory, long comprehensive
for rising costs in deliveries and logistics for
the RLP? term provisions and cash has led reverse logistics
customers and proper cost
to the rising costs strategy?
reduction tactics.

To streamline the
We have included two main
entire reverse
What methods We have planned an inventory facets in our reverse supply
logistics process of How to maintain
should we management method and a chain to tackle problems with E-
the company, end sustainability
implement to sustainable recycling process in Waste management
to end and ensure reduce cost?
promises?
order to achieve this. contributing to sustainability
a high degree of
solutions.
customer
satisfaction
What methods We have planned to use tools
We have planned sale of How do we frame
should we like the EPDM system, Balance
refurbished devices and a proper risk
implement in order Sheet Management, Pricing
improved manufacturing management
to recover our Compliance Risk & Interest Rate
processes. strategy here?
revenue? Swaps.

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT 1
 Proposed Three Pronged Approach
Implementing a strong trade in policy, collaborating with industry experts and improving our processes

Rolling out a robust trade in programme Establishing partnerships for outsourcing Developing a new reverse supply chain

1) Reducing costs
➢ They will help us reduce
our inventory costs
➢ They will ensure timely
disposal of old devices

Developing an end to end strategy ensuring a

1) Companies like USM phones strive to smooth coordination between all necessary
streamline the business processes of departments
SRG
DEVICES companies like ours

1 Our trade-in programme will offer

the highest trade in value, compared
to our competitors.
2
The procedure will be streamlined so This wholesome strategy would cover all the
that customer exchanges are aspects of our reverse logistics process
processed instantly

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT 2
 So how exactly will the trade-in programme work?
Devising a reworked trade-in programme to ensure customer satisfaction

STORE TRADE-IN SRG TRADE IN OLD DEVICES

➢ The old devices will either be sent to our nearest
➢ Customers can walk into our stores to trade in
warehouses, to be recycled or repackaged to be
devices without a hassle.
sold as refurbished devices.
➢ They will get instant credit, and can get their SRG SRG
➢ Or they will be sold at a profit to companies like
next SRG device at a discounted price
USMP.
TRANSPORTATION
MAIL TRADE-IN
➢ The store’s traded in devices will be transported
➢ Customers can also mail in their phones
using partners to avoid delays
➢ They will get credit within two days, and can
➢ An algorithm will be developed to make these
exchange their devices instantly.
processes efficient and cost effective.

CUSTOMER CARE TRAINING

➢ Building an effective cloud system which ➢ Store employees will be trained to check
allows customers to easily back up and smartphones efficiently to ensure a
speedy returns/exchange experience.
SRG.COM

switch to a new device

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT 3
 How can outsourcing help us?
Outsourcing will help make our processes more effective
BENEFITS MARKET TRENDS PROPOSED PARTNERS

1) COST BENEFIT A major shift in

➢ These companies will consumer behavior
handle the entire process expected toward
➢ It will reduce our transport-
E-Grocery Segment
(Sample deal) We propose to
ation and warehousing costs BofA Global Research Report
onboard Cashify as a partner
wherein:-

2) ADDITIONAL REVENUES • They will be our official

trade in partner.
➢ Our refurbished phones will
be sold at set prices • We will advertise that
➢ We will not have to incur everywhere
costs on repackaging, • Our phones will get the
selling, etc.
highest resale value on
their platform
3) CASHIFY PARTNER
PROGRAMME
The cloud kitchen
➢ Partnering with companies
like Cashify and PayMore market is expected to
will enable us to provide grow by 9% CAGR.
doorstep pickup options

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT 4
Reverse Logistics Optimization Strategy
This is the blueprint of our new reverse supply chain
Entire disposal process is to be
handled by third party
Item Received in
Return Request Shipping Returns the Returns
Facility
disposers and waste
management companies. It D
also creates a small revenue
window. I
Defective No
S
Inspection
Recall or
Defective
Repair P
O
Simplified Yes
engineering work S
or simple repairs
comprise this
area
Shipping Parts Repair Process
A
Spare parts are
called from the L
inventory for
Returned to
the repairing
sender Scrap
process

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT 5
 Maintaining our sustainability promises
With our revised reverse logistics processes, we have created new ways to control E-Wastes

SRG's new reverse supply chain gives great weightage to the inspection process

This helps us determine and segregate useful parts which are passed on to be
recycled and help us in production of other appliances.

This contributes in cutting our costs significantly and also prevents unnecessary e-
waste. We would high lift these in our MDAs to present this our stakeholders.

Proposed Organizational Governance for Reverse Logistics

OUR DISPOSAL STRATEGY
We have planned to partner with
global e-waste management
companies like Aurubis,
Umicore, SIMS Metals to sell of a
scraps at fair prices and so that
they can be disposed off in the
most efficient manner possible.

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT 6
Financial analysis of the impact of the problem on the company
Our analysis show how our company has been impacted by our inefficient RLP

890

3,123

6,560

Type of Report Description

Long Term Provisions Reflects the stock of resources kept for future emergencies, which as shown here has been rising due to inefficient RLP of the company

Inventories Stock of goods kept in anticipation of demand, which has been rising and increasing our costs due to excess inventory from returns,
etc.
Cash and Cash Equivalents The cash and cash equivalents has taken a hit in the last two years due to rising customer dissatisfaction and increased costs

Source : Data taken from the balance sheets of large electronics manufacturers

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT 7
 Implementation
Identifying problems to be solved in the implementation scheme via a three-vertical framework
Cost Reduction Measures
1) Inventory Management Method: High levels
of inventory and long term provisions have
persisted over the past years in our financial
reports, therefore using generative A.I. and
Linear Physical Programming to optimise
inventory in order to reduce costs.
2) Sustainable recycling process with regards
to e-waste and material based GHG emissions
this shall be undertaken by designing a bi-
objective reverse supply chain.
3) Developing a centralised returns
management system to ensure that costs are
minimised.
EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME
Revenue Recovery Methods
• Revenue recovered from the sale of
refurbished devices in developing
countries like India and Bangladesh
• Revenue from selling traded in devices
to second party companies like USMP
• Revenue recovery from reusing
materials from traded in devices.
OUTSOURCING OPTIMISATION
Financial Risk Mitigation Measures
1 Implementation of an Execution, Delivery
and Process Management System (EPDM) to
mitigate operational risks emerging from RLP
Hedging of liquidity risk through interest 2
arising from RLP, through interest rate swaps
from sister concerns (like Apple)
3 Implementation of Balance sheet risk
management to handle the
implications of proposed RLP
4
Methods of pricing compliance risk
into RLP procedures for sustainability
initiatives
Conclusion : These methods will ensure that
our exposure is mitigated effectively
RLP : Reverse Logistics Process
FINANCIAL ANALYSIS RISK MANAGEMENT 8
THANK YOU!
- Team Invincibles
Rishab Dugar
Yash Tulsian
Sahil Ketan Mehta
Shivankk Jain
Appendices
• This excel contains the financial report of the past 6 years based on industry
data- https://1drv.ms/x/s!Anzu_7UZ_x_WgUEO1el7lFSNjKab
• “Smartphone Inferno”: Lessons in Reverse Logistics - Supply Chain 24/7
(supplychain247.com)
• Reverse Logistics Tackling Supply Chain's Biggest Unsolved Challenge - Ryder
Compass
• reverse-logistics-pov.pdf (deloitte.com)

• www.verifiedmarketresearch.com
• https://www.apple.com/in/newsroom/2022/04/apple-expands-the-use-of-
recycled-materials-across-its-products/

EXECUTIVE SUMMARY APPROACH ANALYSIS TRADE-IN PROGRAMME OUTSOURCING OPTIMISATION FINANCIAL ANALYSIS RISK MANAGEMENT