returns in centralized or regional facilities and how incoming shipments should be processed. The answer depends on the type of product and what will happen to it after it is returned.More and more shippers are opting for centralized returns processing because it increases their control over a product's life cycle and allows for better data collection. That is especially true for manufacturers of high-value goods with short shelf lives, such as computers and telecommunications equipment that need to be repaired and sold as quickly as possible, notes FedEx's Chyatte. It also creates opportunities for shipment consolidations, which can reduce transportation costs and ensure better utilization of reusable containers and other equipment. Centralized returns-processing also helps shippers document returned products that are exported to secondary markets overseas, supporting claims for duty refunds under U.S. Customs' duty-drawback program, adds "Buzzy" Wyland, executive vice president of GENCO Distribution System.A successful reverse-logistics program depends heavily on gathering meaningful information that can help manage the returns process while tracking costs, says Wyland. "You want software that will facilitate the smooth, efficient backflow of product from the customer-service desk all the way to the final disposition," he says. Too often, companies add the information component at the end onto a finished program, which can create bottlenecks and inefficiencies, he notes. "What's important is not to wait until you have a pile of returned stuff. You have to plan for it upstream and build the software into the system."The Internet is becoming an effective tool for gathering and disseminating information in a reverse-logistics environment. Federal Express, for example, has developed a returns-management system called "NetReturn" that relies on the Internet to capture customer information, schedule pick.ups, arrange transportation, and tra...
