Supply Chain Discussion: Solving Retail Returns
In this discussion Itamar Zur, who is co-founder and chief executive officer of Veho talks about how retailers should view returns as a profit centre. Veho is a Supply Chain as a Service provider which employs a proprietary technology platform, a marketplace of crowdsourced drivers, and a logistics powerhouse with true physical and data-driven network effects. Similar in many ways to Nucleus.
He elaborates on how in retailing, customer retention is the most important factor. It’s six times more expensive to acquire a new customer than to service an existing one, Zur says. E-tailers have access to the same manufacturers, warehouses, supply chain service providers and technology. The differentiator, he says, lies in the end-customer experience — and that means having an efficient and easy way to return unwanted items. “It’s the key to keeping customers,” according to him.
“It’s a question of how to do it in a way that’s economical, elevates the customer experience and builds long-term loyalty to the brand,t hat’s where the profit is.” - Itamur Zur (CEO Veho)
As Nucleus knows all too well, it's these operational supply chain optimization measures that lead to the greatest improvements and cost savings. Gains on gains.