tar heel cscmp presentation

The contents of this communication are confidential and proprietary to Circuit City Stores, Inc. and may not be reproduced, published, or disclosed to others without express authorization of Circuit City Stores, Inc.

Copyright© 2005 Circuit City Stores, Inc. May not be used, copied, or distributed without permission. All Rights Reserved.

Reverse Logistics OverviewTar Heel Chapter of CSCMP

December 7, 2006

Ric SpicerManager of Reverse Logistics and Recycling


December 7, 2006



Discussion TopicsDiscussion Topics

• About Circuit City

• Reverse Logistics: What are we doing?

• Where are we going?


Circuit City at a GlanceCircuit City at a Glance• Circuit City traces its roots to the dawn of the Television Era. The

company was the first TV retailer in the south, founded as Wards Company in Richmond, Virginia in 1949. In 1984, the company became “Circuit City Stores, Inc.” and was listed on the New York Stock Exchange.

• Circuit City sells consumer electronics, including televisions and home entertainment products, computers, music, movies and video games at its U.S. and Canadian stores. In October 2006, Circuit City launched its firedogSM services brand to offer consumers a new level of PC services, home theater installations and integration of home electronics.

• The company is in the midst of a multi-year process of transformation to better serve its customers. Circuit City is also committed to the communities that shop in our stores and has formed partnerships with the United Way, Habitat for Humanity and the Boys & Girls Clubs of America.

• Circuit City’s domestic segment operates through 641 Superstores and 10 other locations in 158 U.S. markets. The international segment operates through more than 950 retail stores and dealer outlets in Canada. Circuit City also operates Web sites at www.circuitcity.com, www.thesource.ca and at www.firedog.com.


Reverse Logistics: What are we doing?Reverse Logistics: What are we doing?

• Reverse Logistics Goals:– Reduce Average Daily Inventory in the PRC’s

• Faster movement through PRC• More efficient administration• Reduce amount of product being sent to PRC’s

(Returns Abatement)

– Become PROACTIVE versus REACTIVE– Engage our Associates at ALL levels– Determine Best Practices, use them and

improve them



• Return to Vendor/Return Authorization Management– Receive, putaway product– Identify consolidated return product

• Monitor for eligibility expiration

– Obtain return authorization– Pick and ship product



• 6 Product Return Centers (PRC):– Bethlehem, PA– Ardmore, OK– Orlando, FL– Industry, CA– Livermore, CA– Marion, IL



• Risk Recall– Return of at risk product or product

repositioning– Timely store execution required

• Product liquidation– Resale through third party resources

• Outlet stores• Web• Liquidation



• Returns Abatement– Assist customer at the store to

reduce/eliminate return• Goals:

– Customer satisfaction» Point of Sale information» Firedog assistance

– Returns cost reduction:» Store warehouse» Transportation to PRC» PRC handling» PRC shipping



• Traffic Administration– In transit damage to vendor– Shortage/overage issues

• Data Management– PRC management– Daily execution of inventory and return

authorization management– Out of Program (OOP) and Going out of

Program (GOOP) product identification



• Buyer Communication– Education in Reverse Logistics methods– Consult on vendor returns terms

• Organizational visibility of Reverse Logistics– Consult with Vendors and Vendor

Relations to negotiate RL terms


PRC Workshop GoalsApril 5-7, 2006


• Create a Best Practices understanding of our operations and how we can use these techniques to reach our goals in FY07.

• Documentation of our consensus Best Practices.

• Improve our communication…The China Game.

• Learn from each other.

• Have some fun…




• Results:– Document of Best Practices– Working with WERC on Reverse

Logistics Best Practices– Instant Payback!!!


Reverse Logistics: Where are we going?Reverse Logistics:

Where are we going?• TL/14 Project:

– Ship product at first occurrence of TL quantity or 14 days

– Results:• Ship product quicker• Reductions in:

– Freight cost/unit handled– Average daily inventory

• Maintain UPH productivity• Increase product turns


Reverse Logistics: Where are we going?Reverse Logistics:

Where are we going?• Analysis of PRC locations

– Transportation– Cost of location/overhead

• Crossdock orientation

• EDI of returns/RA data

The contents of this communication are confidential and proprietary to Circuit City Stores, Inc. and may not be reproduced, published, or disclosed to others without express authorization of Circuit City Stores, Inc.



December 7, 2006

Questions??



December 7, 2006

Questions??


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