PeoplePC saves $20 per return with ReturnCentral
Digital solutions company PeoplePC is saving $20 per return by implementing reverse logistics software from Pittsburgh, PA-based ReturnCentral, says David Hommrich, president and CEO of ReturnCentral.
PeoplePC sells bundled computer solutions to consumers and businesses looking to get employees and customers online. It announced the alliance with ReturnCentral in September 2001. "PeoplePC’s issue with returns was unique because they are a totally virtual company," Hommrich says. "They had no warehouse so if a computer came back it could be stacked in the hallway of their offices."
ReturnCentral was able to broker a deal with one of its 12 partners to house the returned merchandise. It also automated PeoplePC’s manual returns process which Hommrich says, "was like having root canal surgery without anesthetic."
The company’s return rate is about 10%. One way to ease the pain was to simplify the process for PeoplePC customers, says Hommrich. For instance, ReturnCentral provides prepaid labels to the customer making a return.
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