Tesco -Returns Processing

iForce and Tesco have been working together since 2000 and have an industry leading Returns Process. This is proven to be versatile, scalable and flexible, through the recent increase in volume due to the launch of Tesco Direct in September 2006. ReSCU is fully integrated within Tesco and produces a pre advice file for items returned via the till system at the Customer Service Desks, which support the entire UK Store network. This currently stands at 739 stores from the 1706 total stores Tesco have. In order to have a completely visible and auditable Returns Process (see Services Section for more details), the objective is to ensure returned products are swiftly removed from the stores and processed for distribution back to suppliers or stock solution providers, whilst maintaining the highest level of accuracy and lowest dwell time.

The returns process has turned potential losses into gains, over £60million of products have been returned through supplier agreements iForce and Tesco have worked together to implement in the past year. All products are processed within 24hrs of receipt into the iForce warehouse (automatically updating Tesco's own supply chain systems) as every item is scanned and tracked within ReSCU through Licence Plates. It helps Tesco to improve cash flow by accelerating the rate at which goods are processed and improves accuracy so that supplier credits and debits can be managed more efficiently.

There are multiple benefits of this process and ongoing business partnership, including:

• Profit protection through fast efficient processing and accountability of stores
• Full WEEE compliance through complete end to end audit
• Improved Customer Services
• Repackaging, testing, repair or disassembly of products into parts for recycling
• Improved return to Supplier rate and therefore Tesco's cash flow
• Real time reporting and analysis of all returned items with reason code capture and automated, integrated finance reporting
• Improved staff working conditions through till directed processing at the customer service desk

"The professionalism within the iForce team is outstanding - their commitment to delivering over and above the client expectations is second to none, and provides us with an excellent platform upon which we can deliver real improvements into our reverse flow operation. The seamless integration of new and complex systems and processes, whilst dealing with strong volume growth has been very impressive.(I. Towell, National Returns Manager, Tesco. 13.04.07)