Applying reverse logic

Plowden's entrepreneurial spirit was awakened during his tenure as Energiser Batteries' finance and supply chain head. "Up to 40% of products retailers invoiced to return to Energiser never materialised," says Plowden. "I saw a gap for someone to manage returns."

Plowden followed his instinct and in 2009 established Revlogs, then no more than the family car, a trailer and a small garage in Edenvale. "Reverse logistics is huge in North America and Europe but not in SA," says Plowden. "The first two years were tough. There was a point when desperation kicked in."

Massmart's Game division gave him his first big break. But a test had first to be passed. "They gave us and one of the two biggest retail logistics companies, with 12 stores to service," says Plowden. "We won the test."

Revlogs today boasts warehouses in Cape Town, Johannesburg and Durban with Game still its biggest client. Plowden says its other big clients include original equipment manufacturers (OEM) Electrolux, Kelvinator and Bosch.

"Differentiating Revlogs from other logistics firms doing product returns is its value-add services," says Plowden. "Reverse logistics is not just about returning goods to OEMs," he says.

Among services Revlogs provides are managing credit notes and making a call on repairing or scrapping damaged goods. "Scrapping often requires ensuring environmental regulations are adhered to," says Plowden.

He says Revlogs is just scratching the surface of its potential. "There is a huge opportunity," he says. "Of retailers' sales, between 5% and 12% end up as returned goods," he adds.

Source: Financial Mail via I-Net Bridge