TDG ready to open returns centre
Logistics provider TDG will launch a ‘reverse logistics’ service in spring 2003 to manage the return of consumer goods- faulty or wrongly ordered items, of end-of-life products. The objective is “recapturing value or proper disposal”.
The “full returns solution” will deal with returns from homes and stores, and to cope with them TDG is building a returns centre in Derby- the first of many, according to product development director Phil Roe. This is “an rdc in reverse”, sorting goods and grading them for resale, refurbishment, recycling or disposal. The more specialist tasks will be outscored.
The interest in this kind of service id due to the growth of no-quibble returns policies, increasing taxes on waste and packaging, and EU legislation on the disposal of products.
The WEEE. (Waste of Electrical and electronic equipment) Directive, due to come into force in January 2005, puts a responsibility on produces and distributors to dispose of electrical goods, with recycling targets from 75% by weight.
And it will apply retrospectively “Short-tem, there’s a massive problem.” Roe says.
The new Venture is a risk for TDG and it will want a reward to match. “In terms of how we structure this commercially, we reflect that it’s new for everybody, not just us” Roe says.
TDG is also looking at inbound logistics for FMCG (fat moving consumer goods) manufacturers, this has had less attention than outbound giving room for growth.
“We’re taking our experience from other sectors,” Roe says. “most FMCG companies don’t know their spend on inbound logistics.”
The initiative mirrors the move toward factory gate pricing by retailers. Savings will be attractive in FMCG because “efficiency gains stay with the manufacturer- its not something he has to share with the retailer”.
