Electronics Fulfillment: The Growing Role of Reverse Logistics
Scott Hothem • August 15, 2014
After a long spring and summer, football is finally back on the horizon. NFL teams are in camp, preseason games are quickly approaching and this is the year you’ve finally decided to upgrade your viewing experience. We’re not talking about season tickets. This is better. A brand new, 70-inch ultra HD television. The gameday experience is going to come alive in your living room. It will be as if you’re actually on the field.
So the day finally comes. The delivery truck has left your driveway and as you peel the box back you notice a crack that spans from one corner to the center of the screen. Luckily for you, there are still a few days before the first game kicks off. For the electronics retailer and manufacturer, this will be another component that enters the reverse logistics cycle.
Reverse logistics is a long overlooked element of the total product lifecycle. While forward logistics commands focus (the flow of products from the factory to the end user), reverse logistics occurs after a product has reached the customer. The world of reverse logistics encompasses everything from returns, repairs, warranty recovery, recalls, refurbishment and everything that sends the product back away from the consumer.
Electronics and technology products boast the highest rate of return out of any industry, where 20% of devices are returned. The key reason that reverse logistics needs to be a focus in this industry is due to the quick lifecycle for these high velocity products. With the rapid development of new devices, the window to generate revenue from current models is increasingly short. Streamlining reverse logistics operations cannot only improve the bottom line, but also the customer experience.
Visibility in reverse logistics is historically low. Traditionally seen as a simple cost center, a poorly managed reverse logistics process leaves a lot of money on the table. In 2010, Aberdeen prepared a study showing that manufacturers spent anywhere from 9 to 15 percent of revenues on returns (wow!). Preparing a focused reverse logistics strategy can recoup some of this lost revenue.
Obviously, the best way to recoup lost revenue from returns is to get products back to the marketplace as quickly as possible. A study by Resolve shows that 70 to 85 percent of electronics that are returned and tested have no defects. This is a key statistic, because when a finished product is priced and sold, it includes the potential costs of service and parts. When returns are mismanaged, these parts and products cost the company more than intended, meaning money is left on the table. However, when a company can deem a product as “No Fault Found” and navigate it back into its supply, that company just saved 100 percent of its material cost. So how can reverse logistics be an optimized element that enhances the entire supply chain?
- Increase visibility: Integrating technology to promote visibility across the entire fulfillment operation can streamline both forward and reverse logistics.
- Velocity: Focus on a strategy to get products and parts back into the market and to customers as quickly as possible. Build the infrastructure to be able to manage, repackage and remarket returns.
With companies shifting more resources to the end of the product lifecycle, reverse logistics will become a more defined competitive advantage for entities that can reclaim lost revenues quickly. At Barrett Distribution Centers, the resources, tools and skills required to meet the increasing retail and electronic sector demands have been developed and proven.
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In logistics, problems rarely arrive at convenient moments. A shipment requires clarification, an order needs attention, or a customer discovers an inconsistency that cannot afford to linger. What follows often reveals more about a third-party logistics provider than months of uninterrupted fulfillment. The characterization is not necessarily whether something goes wrong. Even experienced operations encounter unexpected circumstances. What separates a dependable fulfillment partner from a frustrating one is the willingness to assume responsibility when an issue surfaces. At Barrett Distribution Centers, that philosophy has a name: One Call Resolution. Accountability Should Not Require a Follow-Up Few experiences erode confidence faster than repeatedly explaining the same problem to different people. An initial inquiry becomes another email, another conversation, and eventually another responsibility competing for the customer's attention. For brands entrusting their inventory and customer relationships to a 3PL, those exchanges carry consequences beyond inconvenience. Every unresolved concern consumes time that could otherwise be devoted to merchandising, product development, or pursuing the next opportunity. Adam Robertson , Barrett's Vice President of Customer Experience, describes a fundamentally different expectation. “When a customer reaches out to us, they only need to reach out once and they know we will own the issue.” The concept does not promise that every situation will be resolved immediately. Some matters require investigation, coordination, or additional communication. Instead, One Call Resolution establishes something more enduring: once Barrett receives a concern, the responsibility for pursuing a resolution belongs to Barrett. Customers should participate in resolving important issues without having to become the people managing the resolution itself. Service Is a Company-Wide Responsibility Although customer experience is frequently associated with account managers and support representatives, fulfillment performance depends on people throughout the organization. A warehouse associate identifying an inventory discrepancy, a supervisor responding to an unexpected request, or a technology specialist investigating an integration concern can all influence the quality of a customer's experience. Recognizing that interconnected responsibility, Barrett has trained more than 200 employees in its One Call Resolution philosophy, extending the principle beyond customer-facing positions. Robertson emphasizes the importance of making customers feel that Barrett is “not only responsive, but we're extremely accountable.” Responsiveness initiates the conversation. Accountability determines what happens afterward. A prompt acknowledgment has limited value when the underlying concern remains unresolved. Meaningful service requires someone to carry the issue forward, coordinate the necessary resources, and remain engaged until there is a satisfactory outcome. Listening Is Only Valuable When Something Changes An organization can sincerely welcome customer feedback and still fail to act on it. Surveys may produce impressive reports, while recurring frustrations quietly persist. Barrett approaches feedback as an ongoing responsibility rather than an occasional measurement exercise. According to Robertson, the company conducts customer surveys twice annually and reviews the findings across its management and operational teams. Critical feedback becomes a documented case that remains open until the identified concern has been addressed. If a customer requests improved reporting, for example, that feedback is not simply recorded as an observation. It becomes an item requiring follow-through. This approach reflects a broader understanding of customer relationships. Expectations change as brands introduce products, expand distribution channels, and encounter new demands. A fulfillment partner must be prepared to listen carefully and respond constructively as those needs develop. The Relationship Is Tested When Something Goes Wrong Reliable fulfillment will always depend on accuracy, consistency, and sound execution. Yet the strength of a partnership also emerges in less predictable circumstances, particularly when a customer needs assistance and cannot afford to spend the day searching for answers. For brands evaluating a 3PL, service deserves the same scrutiny as warehouse capacity, technology, and pricing. An impressive distribution network matters, but so does knowing that the people responsible for your operation will remain accountable when circumstances become complicated. Ultimately, the measure of customer service is not how confidently a company promises support. It is how consistently that promise translates into action. A good 3PL answers your call. A great fulfillment partner makes sure you do not have to keep calling about the same problem. Looking for a 3PL that takes the time to understand your business? Start a conversation with Barrett Distribution Centers.
By the time your inventory reaches the Port of Baltimore, it has already completed a considerable journey. But for the brand waiting on those products, arrival at the port is hardly the finish line. The merchandise still needs to clear the next stage of its journey, reach a warehouse, become available for distribution, and ultimately find its way to a retailer or customer's doorstep. When those steps involve unnecessary distance or too many handoffs, an exciting arrival can quickly become another source of complexity. For brands importing through Baltimore, the location of the warehouse deserves a closer look. Keep the Next Step Close When your inventory finally reaches the Port of Baltimore, you want the next step to feel like progress, not another logistical hurdle. Barrett Distribution Centers' Curtis Bay facility is located within 10 miles of the port, creating a natural transition from international transportation into domestic fulfillment. Rather than viewing Baltimore simply as the place where products enter the country, brands can use it as the starting point for what comes next, whether that means preparing inventory for retail, fulfilling ecommerce demand, or moving products farther into their distribution network. For Horseware, an Irish equestrian brand working with Barrett for its United States fulfillment, that location carried real significance. “Barrett’s strategic Mid-Atlantic warehouse location, near the Port of Baltimore, is pivotal for us,” said Conor Farrelly, Logistics Manager at Horseware. Horseware's decision was not based on proximity alone. Barrett's experience supporting retail, business to business, and ecommerce fulfillment also mattered because imported inventory rarely has only one destination. Your Inventory Arrived. Now What? Picture a container filled with products arriving in Baltimore. Inside, some of that inventory may eventually be purchased by an ecommerce customer. Another portion could be destined for a retailer. Certain products may require labeling, pre ticketing, palletization, cross docking, or other preparation before they are ready to continue moving. Suddenly, the warehouse is doing much more than providing square footage. That is where the conversation around port proximity becomes more interesting. Barrett's Baltimore operation can support ecommerce fulfillment, retail distribution, omnichannel operations, and value added services, giving brands the ability to move inventory from international arrival toward the channels where it will actually generate demand. For a growing brand, that versatility matters. Sales strategies evolve, retailer opportunities emerge, and a business that once relied predominantly on one channel can gradually become far more complex. The warehouse receiving imported inventory should not become the obstacle standing between today's operation and tomorrow's opportunity. Look Beyond the Distance on the Map It is easy to evaluate port warehousing by mileage alone. Certainly, distance matters, but a nearby building is only useful if the operation inside it can support the business waiting on the other side. A more revealing question is: What can happen to our inventory once it gets there? Does the location make sense not only for receiving products, but also for moving them toward the markets and customers they ultimately need to reach? Those questions transform warehouse selection from a real estate decision into a broader fulfillment decision. For brands importing through the Port of Baltimore, proximity can create a valuable beginning. What ultimately matters, however, is where the operation allows the brand to go from there. Your products have already traveled a long way to reach Baltimore. The right warehouse should help make the rest of their journey count. Looking for a 3PL that takes the time to understand your business? Start a conversation with Barrett Distribution Centers.
Holiday volume rarely arrives politely. It does not wait for receiving to quiet down, retail orders to clear, or every incoming shipment to find its place. Customers simply begin buying. Promotions launch, popular products accelerate, retailer requirements continue, and inventory keeps entering the building while orders are moving out at an entirely different pace. For an omnichannel brand, that is what makes peak season particularly demanding. The challenge is not merely fulfilling more ecommerce orders. It is sustaining the rest of the business while one part of it becomes considerably busier. Peak Does Not Replace Your Normal Business A holiday forecast might predict a significant increase in direct to consumer orders, but those orders do not exist in isolation. Business to business shipments still need attention. Retail commitments remain. Inventory must be received. Special projects may continue. Personalized orders can require additional touches at precisely the moment speed becomes increasingly important. Harrison Smith , Director of Commercial Revenue at Barrett Distribution Centers, emphasizes the importance of examining these patterns rather than relying on broad annual averages. “It’s looking at yearly trends, looking at within the year, what does that look like? Do you have those peaks?” Understanding the peak is important. Understanding everything happening around the peak is equally consequential. A brand could finish the year with an average of 5,000 monthly orders, for example, while experiencing dramatically different volumes from one month to another. Once promotions, seasonal inventory, retail activity, and multiple sales channels enter the equation, the average begins to conceal more than it reveals. As Harrison explains, “When I work with brands, I wanna understand everything about the business.” That broader perspective gives a fulfillment partner context. It helps explain not simply how much work is coming, but when it is coming, where it is coming from, and what else the operation will be responsible for at the same time. Omnichannel Growth Changes the Peak Season Equation A growing brand may begin with a relatively straightforward direct to consumer model. Success often introduces something more complicated. Retail opportunities emerge. Business to business volume grows. Marketplaces become relevant. New products require different handling. Suddenly, fulfillment is no longer about moving one type of order through one channel. Scott Wilkins has spoken about this progression throughout his years working with Barrett customers. One of the advantages of building an operation capable of supporting multiple channels is that a brand does not have to reinvent its fulfillment strategy every time a new opportunity appears. That experience becomes especially valuable during peak because each channel brings its own requirements. A direct to consumer order and a major retailer order may contain the same product, but they are not necessarily the same fulfillment task. Without the right experience behind the operation, Scott cautions that “brands can get into trouble really, really quickly.” During the busiest months of the year, there is considerably less room for that learning curve. Your 3PL Needs More Than a Forecast Forecasts provide a starting point, but numbers become far more useful when brands explain what is driving them. If marketing is preparing a major promotion, tell your fulfillment partner. If a retailer order is expected during an already busy week, communicate it early. If inventory is arriving later than planned or a particular product is suddenly outperforming expectations, that information belongs in the conversation too. This is where a strong 3PL relationship becomes less transactional. Bryan Corbett at Barrett has described the relationship between brands and their fulfillment partners as one built on expertise, honesty, and trust. His perspective is refreshingly practical: “Sometimes the customer's not always right. And sometimes Barrett's not always right. Sometimes we make mistakes.” Peak season does not eliminate those realities. If anything, increased volume magnifies them. Plans change. Forecasts miss. Unexpected problems emerge. The strength of the operation becomes visible in how people respond. As Bryan puts it, “You show your expertise through your honesty and your trustworthiness. You can’t separate the two.” Growth Should Create Opportunity, Not Fragility The ultimate objective of peak planning is not to construct a perfectly predictable holiday season. That would be unrealistic. It is to build enough visibility, communication, and flexibility into the operation that success does not destabilize everything surrounding it. Your holiday promotion should be allowed to outperform expectations. A retailer opportunity should feel exciting. A sudden surge in demand should represent momentum rather than an immediate operational crisis. That requires a fulfillment partner capable of seeing the entire business, not simply the orders accumulating in one queue. Because when holiday volume accelerates, the rest of your business does not disappear. It keeps moving, and your 3PL needs to be prepared to move with it. Looking for a 3PL that takes the time to understand your business? Start a conversation with Barrett Distribution Centers.
