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Reverse Logistics

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Timothy Payne

on 20 October 2014

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Transcript of Reverse Logistics

McKesson Distribution Ops
Reverse Distributors

Customer Program Mgmt
Program Management for DC returns processing
Saleable-i.e. customer policies
Unsaleable-returns by DC

Expired/unsalable product pulled from shelves
4.1 million pieces process annually

Management of product disposition
Management of return policies (3000 active suppliers)
Aging of product

Product Recalls

Preferred provider
$6M annual spend
Buy Back & MURP program (RNA & Independent)

Nexus (Hospital Accounts)
Relationship with six reverse distributors
RD's have direct relationship with customers
McKesson 2-3% administration fee

Buy Back Program
McKesson pays customer for % of expected value of return
Costco, HEB, Topco, Giant Eagle

Admin Program
Flat Fee 2-3%
Ahold, Publix, Albertson's, SuperValu

Pass Through
No Value
Walmart, Target, Rite Aid
Negotiation and management of policies
Mitigate risk

Reimbursement management
Maximize collection rates from manufacturers

Communication Effectiveness
Internal & External
Customer Resolution
Recapturing Value
Reverse Logistics
Reverse Logistics?

Management of McKesson DC Returns

Partnerships with
Reverse Distributors, Manufacturers, and our Customers
Management of Customer Returns
"On the forward side you deal with order. On the reverse side you deal with chaos, trying to get order"
Clay Valstad-Sears
Reverse Supply Chain
After market logistics
McKesson Reverse Logistics
programs and processes to maximize value on returns.

Small team with six associates
Partnerships with multiple departments
Six sigma collaboration for process improvements

Customer Relationship Development

Program Offering

Product recall protocol

Thank you
McKesson DC's
Full transcript