Contracts
15 February 2010

Netto appoints Norbert DEntressangle for returns management

Discount retailer Netto has appointed Norbert Dentressangle to establish and operate a centralised returns handling centre for non-food products from its UK stores. Established in 1981, Netto is part of the Dansk Supermarked Group which has more than a thousand stores across Europe, 194 of which are located in the UK.

Drawing on best practices developed through the provision of leading edge reverse logistics solutions for major retailers including Asda, B&Q, Marks & Spencer and Tesco, Norbert Dentressangle will operate a central returns management centre for Netto within its shared user facility in Birmingham. Prior to Norbert Dentressangle’s appointment, returned product was retained in store or within the retailer’s regional distribution centres (RDCs), with no defined process for disposal, taking up valuable space and working capital.

Under the new arrangements, returned product is collected from all stores by Netto’s delivery vehicles and consolidated at the RDCs for bulk transportation to the returns handling centre. Following inspection of product, Norbert Dentressangle’s unique BACTRAC system captures details of returned items and automatically identifies the most appropriate disposition routes based on a set of user defined questions, dependent on the value and condition of the product. These are typically return to vendor, re-sale through the secondary market or, if this is not possible, scrappage in line with the appropriate legislation, e.g., WEEE. Where appropriate, Norbert Dentresangle also undertakes product refurbishment in order to maximise recovery value.

In addition to providing real time, item level visibility of product in the reverse supply chain from point of receipt to final disposal, BACTRAC provides comprehensive views of historical data and trends, providing Netto with valuable management information. Norbert Dentressangle has also worked closely with Netto to establish new return to vendor agreements with a number of major suppliers, significantly improving the recovery value of returned product. The firm is also using its established European network of dealers to secure maximum revenue from ‘graded’ product, whilst ensuring that this product is not re-sold in Netto’s primary markets.

Nigel Tullett, Logistics Director for Netto, said: “Our low prices are testament to our ability to negotiate highly favourable purchasing agreements with our suppliers and, working strategically with Norbert Dentressangle, we are successfully extending this to the return of product. At an operational level, Norbert Dentressangle’s specialist expertise, systems and experience in the effective management of the reverse supply chain, combined with their established network of re-sellers, is helping Netto to realise significant improvements in recovery values and minimise scrappage for both commercial and environmental benefit.”

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