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considerations for customers located outside the EU, so it’s important that the system is set up correctly in the first place to ensure the retailer is complying with regulations and that these costs are considered from the outset. Lastly, it’s important to step back and view
the process from a customer perspective to ensure that it’s easy to use and reliable. Systems should be tested and tested again before being rolled out to the market.
Cross-border returns As many companies seek to expand outside
the UK, the subject of how to manage returns across borders is becoming more prevalent. Considerations that companies already make for their UK customers are more complicated when applied to customers abroad. Here are some key areas to look at when implementing a cross-border returns process:
• How easy it is for the customer to return items? For example, where will the drop points be?
• How will the costs involved in returning the parcels to the UK be managed?
• How long will the customer have to wait for a refund or replacement item?
• How can items in the system be tracked? • How can the rate of returns by market be monitored?
• How can stock reintegration be managed?
• How easy is it to implement the system? • Is the system scalable and can it grow with your business?
• Are there considerations surrounding reimporting items back to the UK from non-EU destinations?
Outsourcing There are lot of considerations here, and
sometimes it is more sensible to outsource the process to an expert third party to plan and administrate the returns solution. For example, the third-party provider should have a good handle on any tax and duty considerations for customers outside of
the EU, and can advise on meeting these specific requirements. It should also be possible to integrate with
a supplier’s existing IT systems and logistics providers to ensure minimal disruption and cost. Ideally, the returns process should be integrated into the website on a white- label basis, so that as far as the customer is concerned, everything looks and feels the same. By outsourcing the returns solution—and
potentially the main distribution as well— companies can concentrate on simply producing a good website and online shopping experience for their customers. For small retailers especially, this may be an attractive option. Ultimately, the returns process needs to be
tailor-made and carefully planned from the outset to ensure that it works for the business and for the customer.
Paul Galpin is managing director of mailing and distribution firm P2P Mailing
The case for direct despatch 2
By Jacquie Boast
Many retailers are now using a direct despatch model, enabling customer orders to be sent directly from the retailer’s supplier. The major benefits of direct despatch are two-fold. First, it reduces cost and exposure to stock by removing the need to warehouse, and second it allows a retailer to greatly increase its online offering without taking the risk of prebuying stock. Direct despatch can also enhance a retailer’s ability to rapidly adjust to ever-changing customer trends. It can improve the customer experience by speeding up delivery as the item does not need to be shipped to the retailer’s warehouse first. Retailers are understandably reticent about handing over control
of despatch for fear that their brand image may be impacted by a customer’s negative experience. For this model to work, a direct despatch operation needs to provide the retailer complete visibility of the order throughout the supply chain. An efficient direct despatch system will enable suppliers to perform
a variety of crucial order fulfilment functions, including purchase order and stock visibility, response and despatch, document production and invoicing, as well as provide the retailer with a complete and real- time view of the supplier’s data. With this visibility, a retailer is able to control the processes followed by its suppliers—critical for keeping a handle on operations and essential to maintaining high standards of customer services.
How direct despatch can benefit your business:
transportation and handling costs. It also allows for quick delivery direct from the supplier and a wider product range as stock isn’t constrained to space in the retailer’s warehouse.
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Reduce cost and risk of warehousing stock Using a direct despatch model, companies can significantly reduce the volume of stock in their warehouses, minimising
Maintain and manage brand, including labels and shipping documents A good direct despatch system provides suppliers with
a simple, user-friendly means of receiving and managing orders, from initial purchase right through to despatch. The system then automatically generates the retailer’s branded documentation for each order. The system will create an audit trail of all status changes in the life of the order.
system. This enables both parties to forecast activity much more accurately by analysing previous performance, monitor current activity and plan promotional activity much more quickly to meet market opportunities.
ensuring desired delivery times for customer orders. By implementing such a system, companies can commit to demanding delivery timescales. The process also enables users to conduct a full review of their carrier strategies and allows for the introduction of a revised roster of approved carriers and a more flexible delivery schedule.
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Jacquie Boast is chief operating
officer, EMEA, at Kewill, a provider of global trade and logistics systems.
Catalogue e-business | Direct Commerce |
www.catalog-biz.com 11
Ensure customer service and experience is prioritised A key benefit of direct despatch is
Allow for more accurate forecasting Both the retailer and the supplier have greater visibility of orders and stock by using an automated direct despatch
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