Tesco

Tesco

Contract awarded: 2001.

Location: iForce site in Corby Max Park

Services deployed: iForce Revive, iForce Marketzone.

Scope: Receipt, processing and margin recovery on non-food products returned to store or via parcel carriers. Collation and sortation of store Returns arising from range change or seasonal allocation of space. Onward sale of products not being sold online or in store.

Background: The range of products returning to the site for processing and recovery includes everything from Clothing, Housewares, Bikes, Toys, Electricals, Electronics to Wine. The Revive software is used to establish a consistent process of software directed product inspection and recovery actions with the aim of moving as much of the returned product back into full margin sales as possible. All product is processed within 12 hours of receipt and typically for every £1 spent on the recovery processing £15 of stock value is recovered.

The data collected on each returned line and on each vendor is used within the Tesco business to inform their vendor agreements and to set future pricing.

Over the years that iForce have processed the returns, additional value added processes have been launched to further try and minimise margin erosion. For example, technicians are now employed to recover damage to bike frames and wheels.  Every avenue is explored to minimise margin erosion.

In some cases, where product is no longer being sold in store, the packaging is damaged or where components are missing, Tesco use iForce Marketzone to sell this product on to individual customers or onto other businesses, either through our Marketzone service or through an Tesco Branded ebay site built by iForce. The use of the auction sites has increased margins significantly over those previously obtained from jobbers.