Collaboration yields improved logistical processes

Returned merchandise is a major drain on profitability for most U.S. manufacturers, costing more than $100 billion a year. Many companies view it as simply the cost of doing business. A few, however, see management of the returns process as an opportunity to enhance bottom-line performance and improve customer satisfaction.

Owens Corning, with annual sales of $5 billion, is one of the few that has chosen to manage the process.

Faced with occasional unauthorized returns—customers with approved returns using their bills of lading instead of the return authorization forms or shipments being returned to the wrong locations—Owens Corning collaborated with ABF to refine the logistical process of returning merchandise and improve customer service.

Together, they developed a solution. Products are now routinely returned to the right plant and in the right quantities. Customer satisfaction is high.

"ABF is not just another company that moves my LTL freight; they are a strong supporting partner interested in helping me provide a superior service to my customers," says John Gentle, head of carrier relations at Owens Corning. "They are committed to understanding the dynamics of the marketplace and guiding us to create an infrastructure best suited for operational experience."

Owens Corning has even invited three ABF executives—Vice President of Operations Wes Kemp, National Account Director Jim Antal, and Regional Vice President Tom Carlson—to serve on the Owens Corning Dispatch Council, which provides guidance and feedback on tactical issues impacting company operations.

“It’s amazing how our efforts to problem-solve together have paid off,” Antal said. “We’ve seen new opportunities emerge in the marketplace for both of us.”

In fact, insights developed through the partnership have become the basis for yet another value-added service from ABF: Returns Management. Contact ABF to learn how effective management of returned goods can profitably transform potential disappointments into extreme customer satisfaction.

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