The case of John Lewis Presented by T Zhakata, L Chauke, M

Olaad, M Mahmood and B Mwashaireni

Omni Challenge Group Presentation

Presentation Purpose

Demonstrate the ability to develop creative solutions to complex engineering challenges and, technical insight and analysis.

Task Design an innovative process model for the returns of garments for an Omni channel retailer

Integrate appropriate technology to aid the operation

Focus Customer ExperienceWarehouse ActivitiesFinanceTechnology

Omni Channel“concentrated on a ‘seamless’

approach to the consumer experience through all available shopping channels” (Diamond et al 2015)

encompasses the notion that anything can be sold anywhere with high efficiency in regards to the supply chain, consistent marketing and responsible customer services.

Questionnaire

( tick all that apply)

Which is your preferred department store? John LewisTesco clothingHouse of FraserDebenhams Mark & SpencerBhs

How often do you shop?More than once a weekOnce a week2-3 times a monthOnce a month

What is your preferred method of shopping? Online/ InternetIn storeBooklet shopping Telephone

Have you returned an item? Yes No

Why did you return the item?Ordered the wrong itemOrdered the wrong sizeProduct not the same as the orderDefective / Damaged ItemDid not like it

How often do you return the items?More than once a week 2-3 times a month Once a week Once a month

How did you return the item?Mail/ PostIn store

Were you charged to return the item?Yes No

Did you get a full refund?Yes No

How long did it take to get the full refund?Straight awayWithin a weekAfter a weekAfter a month

How would you rate the experience of returning? (1 - Horrible and 5 - Excellent)

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WarehouseReturn goods in Fashion SectorOmni Channel: process and system behaves the same

John Lewis and Marks Spencer works towards Omni Channel, despite its difficulties

Logistics in Operation Initially fashion goods gets migrated back to the warehouse via shipment

method and logged in to the system by Stock Controlling team, Normally its used scanning system which format the barcode information and effectively transfer the information to internal database.

The warehouse operative allocate the return goods in to designated

platform, by using belt machine or physically transport it by trollies

Consequently the quality control team assess the garments and adhere with the company compliances and government legislation

Maintain the quality of the garments, later the garments get sent to a

different department where it gets repacked

Quality Control uses different check list method to determine if the garments meet the distribution requirement by using check list technique.

Lease with the appropriate channel and distribute the fashion goods to different warehouse/branches for sales purposes

Process Element in Reverse supply Chain

Reverse Logistics/ FactsReverse Logistic (RL) is the movement of the

process on the opposite direction. (Venkatesh 2010)

RL its proven well structured return process can add value to the product and eliminate disposal cost

Omni Channel aim is to meet the customer expectation and provide fantastic experience

M&S practise Omni channel more effectively, by returning goods to any M&S store in the UK

Omni Channel

Finance

It is necessary for the retailers to deal with returns efficiently so the don’t risk alienating their customers.Returns cost retailers money.The right approach is to focus on ways to

minimise the overall cost of the returns process while selling the returned garments at their original asking price.

There is postage or transportation costs.warehousing costs are incurred as a result

of inspection, processing and repackaging of the garments in the warehouse.

Reusable packaging could be used so as to minimise repackaging costs.

Significant cost savings can be achieved by reducing the amount returnsReturns of garments purchased online could be minimised by:

Good quality control. Ensuring the garments to be dispatched to customers are of the right quality and the desired size.

Shipping the garments to the nearest store where customers could verify the quality, then fit them on before deciding whether to collect them.

Customers pay for postage to return goods to some of the Omni channel retailers.Having pre-printed address stickers included in the order at shipping would be beneficial for the retailers and their customers.Offering the incentive of free shipping on returns would drive up sales.New customers could be won over as a result of implementing a free returns strategy.

Currently it takes a lot of time for customers to get refundsOnce the garments have been deemed to be original during warehouse inspection; customers need to be refunded back as quickly as possible to keep them satisfied.

The likelihood of them shopping from the supply chain again would be high.

RefundsThe returned garments should be refunded via the same payment method used to purchase them.

Once refunds have been paid; customers need to be notified via email, along with offers that might interest them.

Technology

Improving the Returns Process With Technology

What Things Do Customers Return

An effective Omni-channel reverse process should:Allow visibility of merchandise continuously

from the moment it is retuned. Reintegrate merchandise quickly for resale.

Allows for data to be collected by politely asking for feedback on the reasons for the returns.

RFID(Radio Frequency Identification)

Involves gathering data on animals, objects or people without human intervention or physical data entry.

The system works by radio waves communication between the reader and a transponder baked by a computer data base.

 Differences between Barcodes and RFIDsBarcodesCan only be used at a

close range and rely on a user.

Can read one at a time.

Information cannot be updated.

Slower and requires a line of sight.

RFIDCan be scanned from

a distance hands free.Many tags can be read

at the same time.Information can be

updated.Faster and the reader

does not need to be in line with the tag.

Fitting RFID readers in Delivery vehicles

To read information from tags on garments entering or exiting the vehicle.

To easily reintegrate retuned items into the system, reducing the possibility of garments being prematurely declared out of stock.

Move goods quickly without having to scan one item at a time as is the case with bar codes.

Allow customers to return goods even without proof of purchase.

 5.5 Technology to Reduce Returns

Body shape3D imaging walk-in booth rigged with the

measuring technology.

Allows customers to virtually try different; colours, sizes etc.

Companies can study the trend of their clients’ choices and sizes.

The end