DRS Product Returns
The Reverse Logistics Experts

What is Reverse Logistics?

The importance of reverse logistics in the supply chain landscape cannot be over-emphasized. A robust plan to manage product returns, optimize asset recovery and mitigate future damaged products can drive profitability, provide brand protection from unauthorized sales and align with manufacturer productivity and sustainability initiatives. However, existing reverse logistics processes like product inspection, destruction and liquidation are often both inefficient and ineffective. With a proficient reverse logistics partner, manufacturers can maximize the recovered value of product returns and distressed inventories that would otherwise be destroyed while at the same time protect their brand and primary sales channels from unauthorized sales. Distressed inventories include products that will expire and can no longer be sold to the primary retail channel, obsolete inventories or excess, slow-moving inventory that is stuck in the manufacturer’s supply chain.

Who is DRS – Primary Services?

DRS Product Returns is a reverse logistics professional services firm that creatively addresses this inefficiency with 30 years of experience in the industry. It offers solutions for consumer packaged goods (CPG) manufacturers to cost-effectively process and recover product returns and product recalls, optimize the recovery of distressed inventory, and provide expert field consulting services to reduce the rate of future returns.

“Our clients often lack the necessary resources and expertise for liquidating distressed inventories in the secondary market. As their reverse logistics partner, they rely on our vast expertise to implement a best practice approach, which includes driving cross-functional buy-in that can be a significant barrier to success,” says Matthew Varava, CEO/CFO at DRS Product Returns.

How (returns validation, recovery, services) & Current Environment

Retail product returns are charged back to the manufacturer, but quite often, the products are never actually returned, or there are billing errors. DRS validates that retail invoices are matched to product return receipts and verifies the charged rates are in agreement with the manufacturer’s returns policy. Through its established network of secondary retailers and distributors, returned products or distressed inventories are resold, and the net proceeds are returned to the manufacturer. Post-COVID, DRS’ services have become critical as product demand has decreased as a result of a reduction in consumer purchasing power.

During the pandemic, getting CPG to customers proved challenging for manufacturers. Take the case of toilet paper and disinfectant. The demand for these products outstripped the supply, resulting in chaos at the supermarket. However, the scenario turned on its head post-COVID. A decrease in purchasing power and demand for the product has greatly increased distressed inventory levels and negatively impacted manufacturer profitability.

Case Study

One of its clients, a leading over-the-counter health and home goods manufacturer, turned to DRS for support. After partnering with DRS, the client has rolled out an asset recovery process on pace to generate over $100 million of incremental annual revenue combined with a significant reduction in destruction, transportation and storage costs.

Our clients often lack the necessary resources and expertise for liquidating distressed inventories in the secondary market. As their reverse logistics partner, they rely on our vast expertise to implement a best practice approach, which includes driving cross-functional buy-in that can be a significant barrier to success.

Why?

The lack of an established, fully resourced asset recovery process, especially when handling products with expiration dates, like over-the-counter medications or perishable goods, presents a significant challenge to many CPG manufacturers. In large organizations, aligning legal, quality, finance, demand planning, sales, supply chain, and logistics teams to swiftly embrace a new initiative can be challenging without external assistance. Based on its outstanding track record of results and world-class client portfolio, DRS is well-positioned to navigate these organizational complexities and barriers to change. It presents tailored reverse logistics solutions after comprehensively assessing the client’s current practices relative to best-in-class peers to key stakeholders, often in tandem with the VP of supply chain.

In addition to the aforementioned services, the company offers product recall services, off-spec product recovery, warehouse-damaged product remediation and recovery, refused delivery product inspection and recovery, bulk destruction and donation services to meet the needs of each client.

Varava, an expert in both enterprise performance management and organizational dynamics, leads the team of accomplished professionals at DRS.