GENCO and Wincanton Team up to Offer Smart Returns Solutions for UK Retailers and Manufacturers.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--Nov. 6, 2002

In response to retailer and manufacturer concerns about the efficiency of returns management, GENCO Distribution System (GENCO), a leading supply chain and reverse logistics management company, and leading UK supply chain solutions provider, Wincanton, announce a joint venture to launch "R-Log" in the UK marketplace.

Under the new partnership, Wincanton and GENCO will offer dedicated reverse logistics solutions for retailers and manufacturers, which will improve accuracy, cut costs and introduce traceability, as well as drive improvements in overall quality and customer service. Wincanton's established and strong customer relationships and extensive distribution network in the UK will combine strategically with GENCO's proven software and process expertise.

In some retail sectors, up to 20% of goods are returned to the store and this figure rises to almost 50% for home shopping operators and specialist fashion retailers. Most customer service policies specify that the customer should be reimbursed instantly, but for the retailer, returning goods to suppliers and securing a credit note can take weeks.

John O'Hagan, UK managing director of GENCO explains; "The returns process can be extremely complex, because it involves so many different suppliers who can all have different procedures. In many cases, retailers are simply not geared up to manage reverse movements from the stores to the vendors and suffer from lost revenues as a result of vanishing stock, cluttered warehousing and escalating transport costs."

Graeme McFaull, managing director of consumer logistics at Wincanton says, "The UK logistics industry has spent many years fine-tuning the outbound supply chain, but has neglected the reverse loop. As legislation places a greater emphasis on recycling and the costs associated with returns continue to escalate, it is essential for retailers to act now. We are confident that Wincanton's partnership with the GENCO will provide UK retailers and manufacturers with an effective management solution which will ultimately improve their bottom line."

UK retailers are losing hundreds of millions of pounds every year on returned products - a figure which is growing as the grocery multiples move further into the non-food arena, with high value white goods and electrical equipment becoming a larger part of the mix. At the same time, transport costs for these returns are rocketing due to the absence of tight controls in the reverse supply chain. These costs are estimated to be 4 times the cost of outbound deliveries. The returns arena is also the single greatest cause of shrinkage and excess markdowns for retailers, as stock is less tightly controlled and is therefore more likely to `vanish'.

R-Log enables retailers to outsource their entire reverse logistics system to a third party, freeing up employees and maximising sales. R-Log can be rolled out within 6 weeks from the initial proposal stage to start-up. The real time information it enables customers to make informed decisions from accurate data. Retailers across the US are already benefiting from simplified and standardised store returns procedures through the R-Log software provided by GENCO.

Retailers with reverse logistics systems are better equipped to handle product returns, recalls, stock redistribution, product reworking, sale or return agreements, co-packing, product inspection, recycling and equipment return.

About GENCO

Founded over 100 years ago, GENCO Distribution System, Pittsburgh, PA, is a recognized leader in full product lifecycle logistics management and reverse logistics management. GENCO services a wide array of retail and manufacturing clients including Wal-Mart, Unilever, Target, J.C. Penney, Kmart, Braun, Revlon, IKEA, LeapFrog, Becton Dickinson, Kimberly-Clark, Kraft Foods, Reckitt Benckiser, Hewlett Packard, Hershey Foods, Levi Strauss, Novartis, Eckerd, Master Lock, Moen and ACCO. For more information, visit www.genco.com.

About Wincanton plc

Wincanton plc designs, implements and operates creative solutions for complex supply chains. With a turnover of 745m Pounds Sterling and 16,000 employees across 160 locations, Wincanton is the UK's second largest outsourced logistics supplier. Further information can be found at www.genco.com , www.wincanton.co.uk or by contacting Christina French at [phone]; [e-mail].