How did Stadium reduce their return handling costs by 80%?
Stadium has reduced the cost of handling returns from its warehouse in Norrköping by 80% in just a few years. By handling returns locally in Sweden instead of hiring external partners abroad, transport distances are shortened, the customer experience is improved and at the same time the environmental impact is minimized.
– By handling Stadium's returns locally, we save both time and money while gaining better control over the entire process. We avoid long transport distances, and that makes a big difference to both efficiency and the environment, says Daniel Burström, Logistics Unit Manager, PostNord TPL, Region East.
The return management for Stadium is fully digitized and integrated into a system that makes work easy and efficient for the operators in production. The system guides every step of the process, which means that the operator does not have to make their own decisions – all instructions are given automatically, based on the product's condition, value and the set sustainability goals. In this way, the customer is refunded quickly as all returns are usually handled within 24 hours. In addition, the product is handled in a sustainable way, regardless of the proposed action in the system.
The warehouse for outbound and return handling is based in the same logistics property, which further streamlines the process. All returns are handled on site and over 80,000 items are stored in the logistics property, which is significantly more than in the physical stores. The online warehouse is extensive, which allows for a quick registration and handling of returns, immediately when the item has been received and inspected.
– The system is extremely user-friendly and efficient. The operators receive clear instructions directly from the system regarding each step, which means that we can maintain high quality and fast flows without compromising on precision, Daniel continues.
Using data from previous returns, PostNord TPL and Stadium are also working proactively to reduce the number of returns. For example, the product description on the website can be adjusted based on customer feedback, this is to reduce misleading information. The ambition is to reduce the number of returns and create the best experience for the end customer.
– At PostNord TPL, we always strive to develop and improve the return process together with our customers. With our digital and sustainable solution, we deliver efficient, locally produced and environmentally friendly return management that meets the needs of customers and the environment, Daniel concludes.