cturer of specialty chemicals based in Greenwich, Conn., for example, faces several challenges when managing returns of reusable stainless-steel totes from customers in Canada. The company must keep track of the individual containers, which are shipped with chemicals inside, emptied by the customer, and then returned for cleaning and reuse. It also must ensure compliance with both U.S. and Canadian transportation law because the totes often contain hazardous chemicals and residues. Finally, Witco must prepare proper documentation to allow the totes to clear customs on both legs of the round-trip journey. With a large number of containers moving back and forth between the two countries, the potential for confusion and error would appear to be great. But the $1.9 billion company maintains tight control over its equipment with the help of its third-party service provider, CF Reverse Logistics, a division of Consolidated Freightways. About three years ago, Witco hired CF to track, monitor, and arrange the return of the reusable equipment, reports Sheldon Ellis, Witco's international logistics manager. Customers call a toll-free number to notify the company when the empty totes will be ready for pickup. "All they need to do is tell [CF] the tote number," Ellis says. Because CF tracks the totes by identification number from the time they leave the manufacturing plant, the carrier knows where "home base" is for each container, he explains. CF picks up the empty tote, then follows Witco's routing guidelines to ship it back to its point of origin. Rather than ask customers to create export documentation for the containers they use, Ellis has CF prepare most of the necessary paperwork. A customs broker selected by Witco clears the totes at the U.S. border. No duty applies, because the containers themselves are not being bought or sold.Outsourcing helps Service Merchandise manage returnsFor retailers, managing returned goods can be a costly headac...
