GENCO Helps Retail Giant Best Buy Tackle Returns
Best Buy, North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances, with more than 550 stores in 48 states, will outsource its complete returns center operations to third-party logistics leader, GENCO. Previously managing four in-house returns centers, Best Buy now will operate out of two centralized returns centers managed by GENCO.
"GENCO's competency as a provider of reverse logistics services will enable Best Buy to process returns more efficiently and cost effectively," says Chas Scheiderer, senior vice president of Best Buy Logistics.
Implementing unique reverse-logistics strategies and cutting-edge technology solutions, GENCO brings Best Buy a more efficient handling of returned goods to increase accuracy, cut costs, provide real-time inventory visibility, and improve overall quality and customer service.
"We have two primary goals for helping Best Buy," says Dave Vehec, vice president, GENCO retail business unit. "We will act as a single-source provider of seamless management of their reverse logistics processes, including data management, issue resolution and software. We also will help them build and streamline strong relationships with their vendors, manufacturers and suppliers."
Due to a highly successful six-month pilot program between GENCO and Best Buy, the first contracted facility went live in April at Best Buy's Brownsburg, Ind., location. In May, the second facility went live in Fresno, Calif. After thorough examination of the facilities' existing procedures, GENCO is prepared to equip Best Buy with the newest techniques in streamlining the reverse supply chain to optimize inventory efficiency and product redeployment.
"Handling consumer electronics returns is more complex than in most retail categories," says Curtis Greve, president of GENCO's retail business unit. "This industry presents numerous conditions of returned, damaged, refurbished or overstock products that dictate heightened levels of product inspection and direction. GENCO will help Best Buy identify the best ‘return' for any item heading through their reverse pipeline, while reinforcing positive relationships with vendors to make sure everyone's helping to maximize the process."
Recognizing the importance of vendor relationship management, Best Buy will be employing GENCO's Value Inspection Process (VIP), an instrumental program for consumer electronics retailers in streamlining credit reconciliation and lowering administrative and operational costs throughout the reverse logistics process.
About GENCO
Founded over 100 years ago, GENCO Distribution System, is a recognized leader in full product lifecycle logistics management and reverse logistics management. With more than 80 facilities nationwide and over 100 software installations worldwide, GENCO services a wide array of retail and manufacturing clients including Wal-Mart, Sears, Unilever, Target, J.C. Penney, Kmart, Braun, Revlon, IKEA, LeapFrog, Becton Dickinson, Kimberly-Clark, Kraft Foods, Reckitt Benckiser, Hewlett Packard, Hershey Foods, Levi Strauss, Novartis, Eckerd, Master Lock, Moen and ACCO. For more information, visit www.genco.com.