Centralizing Returns operation in Poland for lead-time optimization

To ensure the rapid business growth, a fast growing European eCommerce company relies on CEVA Logistics returns expertise

12/11/2023

Handling returns for high-value goods is a complex process that requires specialized knowledge, equipment, and personnel.

Due to the massive growth in recent years, the e-retailer faced several challenges:
- On one hand, the expansion of the range and the associated increase in inbound meant that there was no longer enough handling space for in-house returns.
- On the other hand, the greater quantities and diversity of processed returns lead to extended return times, dissatisfied customers, and higher internal costs.
Their primary requirement was to outsource the returns business to ensure ongoing growth and maximize capacity in forward logistics out of their own fulfillment center. To meet this requirement, the retailer was looking for a dynamic partner with expertise in e-returns handling, available warehousing space, and a strong focus on processing high-value items by optimizing operational costs.

TRANSFORMATION STORY

Smooth implementation of one central returns center in Poland, by taking over the entire return business from the retailer’s facility in Germany.
Multiple sort destinations: 1.3 million returned items processed per month, with a salvage recovery rate of 92%, separating them in the fashion, beauty and bulky items and sorting them to several destinations.
Additional value-added services: managing specialized value-added services for luxury items and preparing B2B shipments to the retailer owned outlet shops.
Successful peak season management with up to 700K items processed per week

Returned items

450K

Returns handled weekly and up to 700K items during peak season

Salvage

92%

Salvage recovery rate

Salvage items

100K

Salvage items monthly

Optimizing operational costs by building up one central returns center in Poland.
A reliable returns handling process that ensures a high recovery rate for their high-value fashion items.
The quick back-to-stock process for fast-moving goods has helped the client to maintain a steady flow of inventory, leading to increased customer satisfaction.
Our partnership has also helped in expanding the product life cycle for high-value items, which has reduced the amount of waste generated by the business.