Capstone Shares Award with Delhaize and IRC

Orlando, FL - May 16, 2012

During the May 2012 Joint Industry Unsaleables Management Conference, Capstone Logistics was honored to receive the Reverse Logistics Collaboration Award along with Delhaize America, Strategic Global Connections, and Innovative Return Concepts. 

GMA-awardThe Reverse Logistics Collaboration Award recognizes a retailer, manufacturer and/or service provider team based on the criteria that the “project or program demonstrates significant impacts on either unsaleables or reverse logistics functions in the manufacturing or distribution environments or it enhanced the state of knowledge about best practices in managing unsaleables or attacking root causes; and should be relevant and applicable to other companies in the CPG industry.”

Project Overview
As part of the Delhaize America (DA) Supply Chain vision, reverse logistics leadership identified the need to align reclaim center operations to reduce costs and drive efficiencies throughout the organization.

DA was operating two onsite reclaim centers and four off site brick and mortar reclaim centers with three separate hardware and software service providers. The complexity of reclaim center operations was creating inefficiencies for DA and their vendors across transportation, data management and accounting. With the goal of building a world class in-house reverse logistics program, the search for an innovative solution began. Through a rigorous RFP process IRC and Capstone Logistics, with industry data support provided by Strategic Global Connections, presented a solution that would utilize industry leading technology, provide a flexible, no-nonsense labor model and maximize DA assets.

The timeline established was aggressive given the scope of the project. Transition six centers to three centrally located in-house facilities operating on a common platform within five months without service interruption, significant backlogs or reporting sacrifices. Each center had a unique business model, file layout, labor needs, and business rules adding to the complexity of the project scope.

Project Results and Benefits
The groundwork for this project began in 2009 when Delhaize opened up scan data to the vendor community through the use of Vendor Pulse, an interface created by RSi that provides data directly from DA’s database (DSS). Further enhancements to visibility came with the alignment of bringing all Food Lion, LLC stores on to scanning off of the ACIS platform and providing real time visibility to retail reclaim scanning. With the completion of the center transition, DA created an environment where total transparency to their reclaim data is available to their vendor partners.

Through the project team’s leadership and commitment to a strong cross-organizational collaboration process across four companies and clearly stated goals and expectations, this team was able to work an aggressive implementation schedule and complete the center transitions ahead of schedule by two months. Originally planned for completion by the end of December 2011, the ribbon cutting ceremony for the Butner PRC was held October, 21, 2011marking the successful alignment of DA reclaim operations.

Based on DA’s initial project analysis and prepared ROI, the realized benefit to DA expense line was improved by 50%, which is sustainable year over year. DA has also seen a 100% transportation expense improvement by utilizing existing lanes and backhauls and an 85% improvement to salvage income with improved cash flow. DA tracks these improvements in year-over-year comparisons.

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