Percentage of returned product flowing through the same logistics network as primary products

This measure calculates the percentage of returned product that flows through the same logistics network as primary products—as opposed to flowing through an independent returns channel. It is part of a set of Process Efficiency measures that help companies optimize the performance of their "manage returns; manage reverse logistics" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
102828
Total Sample Size:
2,572 All Companies
Performers:
25th Median 75th
- 55.0% -
Key Performance Indicator:
No
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Units for this measure are percent.

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Percentage of returned product flowing through the same logistics network as primary products

Key Terms

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Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (8.0)

  • 4.4.1 - Provide logistics governance (10338) - Outlining the strategy for managing logistics. Translate customer requirements logistic requirements. Create an efficient logistic network and outsourcing portions of logistics activities. Design a logistics strategy that optimizes transportation costs and schedule. Define key performance indicators.
    • 4.4.1.1 - Translate customer service requirements into logistics requirements (10343) - Determining the requirements for managing the flow of things between the point of origin and the point of consumption by assessing the service requirements of the customers.
    • 4.4.1.2 - Design logistics network (10344) - Developing a network for logistical activities. Create a network of entities through which materials and information flow, encompassing all related activities associated with the flow of transformation of products.
    • 4.4.1.3 - Communicate outsourcing needs (10345) - Conveying outsourcing needs within the organization, with the objective of sourcing the assistance required. Define the portion of logistical activities that can be transferred to outside suppliers. Assess third-party agencies to carefully select the most appropriate agencies for outsourcing. Convey these needs to management or the appropriate authority.
    • 4.4.1.4 - Develop and maintain delivery service policy (10346) - Establishing rules and regulations, as well as the terms and conditions regarding the delivery of service by the company. Develop a delivery plan that specifies what, how, when, and in which way to deliver services to the customer.
    • 4.4.1.5 - Optimize transportation schedules and costs (10347) - Optimizing the schedule and costs of transportation services. Design a logistics strategy by strategically creating delivery routes and systems, which optimizes the overall transportation schedules and costs. Evaluate different transportation sources in order to select the most appropriate and cost-effective sources.
    • 4.4.1.6 - Define key performance measures (10348) - Establishing measures for evaluating the performance of the logistics strategy of the organization. Establish key performance indicators, including the logistics performance index, delivery in full, and delivery on time.
    • 4.4.1.7 - Define reverse logistics strategy (16905) - Establish a strategy that includes rules and regulations for the physical handling, information processing, and disposition of product and packaging returned by the buyer to the seller or an intermediary. Include return approval, transportation coordination, advance communication, product tracking, receipt, disposition of the return, and processing warranty claims in the strategy.
  • 4.4.2 - Plan and manage inbound material flow (20936) - Creating and executing a strategy for all the internal activities related to the flow/transfer of inbound materials. This process includes planning inbound material receipts, managing inbound material flow, monitoring inbound delivery performance, managing the flow of returned products, controlling the quality of returned parts, and salvaging or repairing returned products.
    • 4.4.2.1 - Plan inbound material receipts (10349) - Managing the receipts of inbound materials. Create a plan accounting for the materials procured from the source of supply and the materials delivered to the distribution center or the warehouse.
    • 4.4.2.2 - Manage inbound material flow (10350) - Managing all the internal activities related to the flow/transfer of materials. Manage materials being delivered to distribution center or warehouse. Gauge the time taken for delivery and if the delivery process is on time.
    • 4.4.2.3 - Monitor inbound delivery performance (10351) - Overseeing the performance of an inbound delivery system. Check the present delivery system's efficiency, cost effectiveness, and adherence to a delivery schedule.
    • 4.4.2.4 - Manage flow of returned products (10352) - Tracking and taking care of the products that have been internally returned either because of their deficiency or in cases of incorrect delivery.
    • 4.4.2.5 - Manage disposition of returned products (20109) - Determining if a returned product can be salvaged or repaired. Salvage or repair is dependent upon the product, the condition of the product, or the availability of a like item.
      • 4.4.2.5.1 - Determine quality of controlled part (12708) - Implement a checks and balances system to verify that returned parts meet acceptable quality standards to determine appropriate disposition activity.
      • 4.4.2.5.2 - Perform salvage activities (10366) - Executing activities for reinstating the returned products. Present the customer with additional incentives of compensation in case of any defective products delivery or any discrepancy in the product specifications in order to save the order from being permanently returned.
      • 4.4.2.5.3 - Manage repair/refurbishment (21604) - Administering the reinstatement of the returned product in order to return them back to customers. Repair or remanufacture the defective or ineffective products returned by the customer. Process the delivery of the repaired or remanufactured products back to the customer.
      • 4.4.2.5.4 - Return to finished goods inventory (21605) - Moving a returned product back to inventory or stock. Whether a product is sufficient as returned, repaired, or refurbished, moving that product back to inventory for resale or returning to customer is the fnal step in Manage disposition of returned products.
  • 4.4.3 - Operate warehousing (10340) - Tracking the inventory deployment. Accept and store products. Ship the products. Measure the accuracy of the inventory. Assess the performance of the outsourced logistics activities.
    • 4.4.3.1 - Manage and track inventory deployment (10353) - Tracking the logistical act of delivering or releasing an inventory item or entity to targeted end users. Track how much inventory has been deployed at all the distribution centers, individually.
    • 4.4.3.2 - Receive, inspect, and store inbound deliveries (10354) - Coordinating the incoming inbound materials/products. Accept the delivery of these materials and the subsequent storage. Track them at the warehouse/distribution center.
    • 4.4.3.3 - Track product availability (10355) - Keeping track of the availability of different materials/products at the warehouse and distribution centers.
    • 4.4.3.4 - Pick, pack, and ship product for delivery (10356) - Packing and shipping the product to deliver to the customer. Take care of the internal and external packaging of the products in order to ensure safe transportation of the products from the warehouse to delivery locations. Notify the ERP system and/or Accounts Receivable Dept.
    • 4.4.3.5 - Track inventory accuracy (10357) - Monitoring any discrepancies between electronic records that represent the inventory and the physical state of the inventory. Look for discrepancies such as phantom inventory, which includes products that an inventory accounting system considers to be available at the storage location but are not actually available.
    • 4.4.3.6 - Track third-party logistics storage and shipping performance (10358) - Keeping a track on the storage and shipping performance of third-party agencies. Monitor logistics storage and shipping performance for third-party agencies. Use measures such as a logistics scoreboard, activity-based costing, economic value analysis, and balanced scorecards.
    • 4.4.3.7 - Manage physical finished goods inventory (10359) - Administering the movement of the finished products that are processed by the organization through its warehouses. Track goods through the use of systems such as barcodes in order to monitor the volumes available, quantity of out-flowing goods, remaining shelf life of the product, etc.--ultimately, to best manage the warehouse capacity.
    • 4.4.3.8 - Manage warehouse transfers (20957) - Shipping items from one warehouse to another in a multi-warehouse environment. A warehouse transfer is typically handled electronically in a system designed to replicate the physical processes involved with transferring items from one warehouse to another.
  • 4.4.4 - Operate outbound transportation (10341) - Creating a plan that specifies the schedule and system for transportation and delivery of the outbound products, as well as tracking the performance of the carrier delivery system. Conduct vehicle management and processing of all carrier-related documents.
    • 4.4.4.1 - Plan, transport, and deliver outbound product (10360) - Organizing the transportation and delivery of outbound products. Plan and organize the transportation, shipping, and delivery of the end products. Create a plan that specifies dispatch and delivery of the product to its destination, as well the transportation.
    • 4.4.4.2 - Track carrier delivery performance (10361) - Monitoring delivery performance when carrying products from the warehouse/distribution centers to the retailers or end consumers. Create a performance metrics based on the key performance indicators.
    • 4.4.4.3 - Manage transportation fleet (10362) - Taking care of a range of functions related to the means of transport used for delivering the end products. Manage vehicle financing, vehicle maintenance, vehicle telematics (tracking and diagnostics), driver management, speed management, fuel management, and health and safety management.
    • 4.4.4.4 - Process and audit carrier invoices and documents (10363) - Organizing and inspecting all account statements and any other documentation for the carriers used in delivery. Create, manage, and inspect all documents related to the financial, regulatory, and administrative accounts of all the carriers/freights. Generate receipts for all freight transactions.
  • 4.4.5 - Deliver last mile delivery services (21617) - Validating specific service requirements for individual customers. Determine and schedule resource to fulfill these requirements. Provide service to specific individual customers. Ensure the quality of service delivery.
    • 4.4.5.1 - Confirm specific last mile delivery service requirements for individual customer (21618) - Acquiring or soliciting information about specific service requirements for individual customers through the customer service function. Obtain information about customer specific requests, process these requests, and create customer profiles to generate a service order.
      • 4.4.5.1.1 - Process customer request (21619) - Soliciting or acquiring information using various sources such as databases, customer interactions, and customer request forms. Hand them further up the hierarchy to deal with them. Categorize the user's request, determining if the request is supportable and prioritizing the request.
      • 4.4.5.1.2 - Create customer profile (21620) - Documenting the individual customer service requirements solicited, along with personal information of the customers, in order to generate customized profiles that hasten the delivery process.
      • 4.4.5.1.3 - Generate last mile delivery order (21621) - Designing a short-term agreement between the service provider and customer. One-time services are ordered by the service recipient and resource-related billing is performed upon completion. Use the service order to document service and customer service work.
    • 4.4.5.2 - Identify and schedule resources to meet last mile delivery requirements (21622) - Determining and scheduling the resources required to fulfill customer service requirements. Create a detailed schedule about the service orders and development of these service orders.
      • 4.4.5.2.1 - Create resourcing plan and schedule (21623) - Developing a plan for sourcing and deploying the resources required to fulfill customer service needs. Document a detailed summary of all types of resources (equipment, finance, personnel, time, etc.) required to complete customer service requests and procure these resources. Identify and assess various sources in order to effectively create a resourcing plan.
      • 4.4.5.2.2 - Create last mile delivery service order fulfillment schedule (21624) - Designing a detailed summary of customer service order requirements, along with information concerning the timing and duration for these services. Categorize the customer needs. Monitor the services delivered.
    • 4.4.5.3 - Provide last mile delivery service to specific customers (21625) - Dispatching resources for managing and fulfilling daily service requirements. Manage the progress of order fulfillment. Complete order blocks.
      • 4.4.5.3.1 - Organize daily last mile delivery order fulfillment schedule (21626) - Laying out a daily plan of specific service orders that need to be fulfilled. Document and systematically order these activities to ensure high effectiveness and efficiency.
      • 4.4.5.3.2 - Execute product delivery (21627) - Dispatching and delivering the resources needed for the specific service requirements from the source/warehouse. Manage the dispatch, transportation, and delivery of the services.
      • 4.4.5.3.3 - Manage last mile delivery order fulfillment (21628) - Handling and managing orders fulfilled, along with the orders are not or partially fulfilled to track the order fulfillment progress. Use electronic devices such as trackers and GPS in order track and ensure delivery of the orders.
    • 4.4.5.4 - Ensure quality of last mile delivery (21629) - Guaranteeing the quality of service provided to customers. Identify the successful and unsuccessful orders along with the service failures. Collect customer feedback. Process the feedback to ensure the quality of service in the future.
      • 4.4.5.4.1 - Identify completed last mile delivery orders for feedback (21630) - Determining the service orders that have been successfully delivered. Identify the service orders completed and delivered to the customer. Leverage communication systems to ensure coordination with the customers in order to avoid mishaps.
      • 4.4.5.4.2 - Identify incomplete last mile delivery orders and last mile delivery service failures (21631) - Determining orders which have not been completed or delivered. Identify the service orders that are partially or entirely incomplete, as well as the orders that have not been delivered to the customer. Use techniques such as project trackers to recognize the progress of the service orders.
      • 4.4.5.4.3 - Solicit customer feedback on last mile services delivered (21632) - Obtaining and procuring customer reviews or feedback on the services delivered. Design a customer feedback form, or communicate with the customer through the phone or online.
      • 4.4.5.4.4 - Process customer feedback on last mile services delivered (21633) - Assessing and incorporating customer reviews/feedback into the service plan to ensure high quality of service.