Commerce Case Study

Jun 18, 2016 by sherwood 0 comments
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The cosmetics company increased the value of store-returned products by over $10 million

Commerce Case Study

The customer need:

A name brand cosmetics company accumulates between $15-$20 million annually of product returns from their retailers. The various products require repackaging in order to be suitable for retail sale. The company loses $12-$15 million annually on product returns and spends exorbitant hours on the logistics of shipping, sorting, re-packaging and selling the product to secondary retailers that would not interfere with their primary sales channels. The customer needs to reduce their losses and lessen their investment in re-packaging.

The Sherwood solution:

Sherwood executed an evergreen agreement with the company to pay full original cost for all of their store-returned product in the form of a trade credit, taking responsibility for the entire process including selling the returns to pre-approved secondary retailers. Sherwood worked with a third party logistics company to manage shipping, sorting, and repackaging. Sherwood accelerated the redemption of the trade credits by purchasing national cable television and digital advertising campaigns on the client’s behalf.

Result:

The cosmetics company increased the value of store-returned products by over $10 million annually, and the entire process was outsourced at no additional cost.