6. CENZ return team will send the approved and authorized return requests internally to NZ couriers’ CENZ dedicated return team on a daily base before 7:30am.
7. All the return requests and pickup detail will be dispatched by NZC dedicated
return teams in Hub. As mentioned previously, NZ couriers are using Hub and Spokes system; the return processing is centralized and the CENZ return team are mainly located in Auckland Branch. The return team prints all the dedicated return labels from NZC dedicated address label printers and informs pick up couriers, and then the return jobs will be dispatched to couriers by pager message and the
139 pre-printed return label will reach each depot on the same day in Auckland regional area.
8. The CENZ return labels will physically be distributed to the different depots
(Spokes) by internal delivery bags. An example of CENZ return labels during the transit is shown in Figure 5.6. Normally the return labels will be received by the second cycle time before 10:30 am, and then couriers will follow the instructions and pickup address to collect the item on the same day.
9. Some issues may be occurred during the pickup, for instance no item, the item is not ready, the pickup job has been done, the customer has moved, incorrect address, and wrong item. The problem is unexpected, and some pick up jobs could not be done. Therefore, these problems should be reported and updated by couriers’ scanners. Once the couriers scan the barcode and press certain buttons, the information will be returned to CENZ return team in Hub automatically. Depending on the different situations, the pickup job may be cancelled or a new corrected return job may be resent again until the picked up job has been completed.
10. If the pickup job has been done by couriers, the scanner will report to team
automatically as well.
11. In the next morning NZC dedicated return team will email an updated report to the relevant personnel in each branch or depot to confirm and check if the each pickup job has been reported and done correctly.
The model, which is one of the advanced return modes in current world, has a wide range of flexibility to face different customers’ needs and wants. The model has been implemented in some other well-known companies such as TNT and UPS. Another example is Buy.com, which is an Internet superstore, utilizes UPS for its product returns. “Instead of calling a toll-free number and going through the usual rigmarole, customers can go to Buy.com’s Web site, log onto the returns area, go through a self-service process that lets them obtain a return merchandise authorization (RMA) number, generate and print a pre-addressed return label, and get complete shipping instructions, a list of local drop-off locations, and maps.”(Dana, 2001) However this
140 return processes need mature IT system and well trained personnel to support the entire procedures. Some key characteristics of the model are shown as below.
The customers could be both individual customers and business customers in this model. The range of uncertainty could be various; the model could minimize the level of uncertainty
during the return processing.
The gate keeping is good, and the return sheet enable all parties such as sender, receiver and couriers to access all the information.
Improved customer experiences─ a customer only needs contact CENZ in this case.
Reduced cycle time; daily update and internal information exchange between CENZ and NZ
Couriers eliminate the traditional barriers.
This return model could cover a wide range of returns items, and is suitable for various situations.
The reasons of returns in this model could be various.
The return procedure is very complicated; all parties have to be well informed, and key personnel have to be fully trained.
This return model needs strong system background and good equipments to support. The number of return items could be various in each single return delivery.
The model has to be customized for specific customers. The cost of pre- setup in this model is high.
This model is very flexible and well designed; the processes could be altered. Good communication among all parties in this return mode;
Receiver is responsible for the cost of return delivery in this case, and the dedicated return label enables the couriers company to charge either sender or receiver depending on the different situations.
ProPharma Return
ProPharma, which is another vital customer of New Zealand Couriers, is the only national pharmaceutical wholesaler in New Zealand with more than 250 staff operating from 8 branches nationwide, along with two hospital divisions in the North and South island. It supplies and distributes a wide range of medical stuffs to all pharmacies, clinics and hospitals. Due to the nature of business, many medical items from ProPharma are urgently required; therefore, the
141 delivery time is highly restricted and each single item normally has very high value, for instance a vaccine delivery requirement is much higher than other normal parcels. Firstly the range of delivery time for the vaccine is normally only between 4 hours to 24 hours within Auckland. Secondly the value of each little package of vaccine may be up to thousand dollars. In the next place, various complex and urgent situations are involved in ProPharma deliveries. Last but not the least, due to the regulations, the expired and unwanted medical stuff has to be returned to ProPharma. Because of the high standard of delivery, delay and losing items are unacceptable; and the deliveries and returns have to be done within certain time, no matter how many emergency cases there are. Therefore it is understandable the cost of delivery is not the priority in ProPharma delivery. ProPharma spend a heap of money every year in its logistics services, and New Zealand Couriers has very special separate delivery process for all ProPharma delivery items and returns from the points of pickup to points of delivery, and then from points of delivery back to ProPharma.
The ProPharma delivery ticket is totally different from that of other companies (see Figure 5.14), the precise delivery information on the address label even shows the delivery courier number, which was introduced in the chapter 4. The
accurate information could directly improve the performance of delivery. Actually, the main reason of delayed or lost parcels is mis-sorted, in other words the parcels have been sorted to incorrect delivery courier’s cage in Hub and then the truck deliver the cages to spokes. Usually, when people realized the mistake it is too late to deliver. Therefore the detailed information is very helpful to improve the accuracy of sorting and minimize the service failure. Besides, all the ProPharma items are stored in the separate ProPharma cage during the transit from Hub to Spokes; every time ProPharma items are sent out from Hub and received in satellite depots, all the ProPharma
items have to be scanned by scanners (NZC, 2011).
Figure 5.14 An example of
142
ProPharma returns are various and it has different return processing for different items. The original delivery ticket might be utilized as return purpose, and sometimes the charge label will be utilized for return delivery depending on different situations and reasons of return. The main return processing of ProPharma is similar to that of CMW and John Sands; the major different is NZ couriers do not hold any ProPharma return item in depot and all the return items will be returned back to ProPharma as soon as possible. Actually this return model focuses on ProPharma Red Bin Return Processing.
ProPharma Red Bin returns
The ProPharma Red Bin return is a unique process in New Zealand Couriers, and the model could be used for other industries as well. Back to the pervious chapter, typical reverse logistics activities would be the processes a company uses to collect used, damaged, unwanted (stock balancing returns), or outdated products, as well as packaging and shipping materials from the end-user or the reseller. Reverse logistics activities have been divided by Rogers and Tibben-Lembke into two different major categories, depending on the type of materials
that flow in the reverse logistics channel, one is the products, and the other one is the packaging. ProPharma Red Bin is the second type of the return—packaging return. The Red Bin is a plastic container (see Figure 5.15) which carries the medical stuffs and order and be delivered from ProPharma to a certain customer. The red bin return is to collect all the empty bins from the customers and return them back to ProPharma. The red bin, which was made of strong plastic material, could be reused many times. The unique part of this return is that there is no any return label involving in this red bin return process, and all the return delivery fee of red bin has been paid when courier first delivers the bin to customers, in other words ProPharma has paid for the