Autumn 2009

An all-in returns processing service suitable for both online and traditional retail sales has been launched under the name Surplus Solutions, and according to co-founder Richard Tucker, it goes much further than traditional returns services in helping retailers realise the value of unsold stock.

The service aims to address the whole spectrum of returns processing, from evaluating the best way to deal with surplus or returned stock right through to collecting it, storing it, reprocessing and rebranding it, and even selling it on through the company's own web outlets.

The team behind the initiative is the same one that created myWarehouse.com earlier this year, offering a low entry-cost fulfilment service to small startup retailers. This service is not aimed at that sector, but brings the same spirit of innovation to bear.

'We aim to help retailers identify how much stock is not moving,' Tucker explains, 'and then determine how best to deal with it.' He maintains that despite the evident opportunities, returns management is often neglected in large organisations. 'Sales and marketing directors may have other priorities, and logistics directors who can see the surplus stock may not have a strong enough remit to deal with it.'

 

He says Surplus Solutions will help highlight the opportunities for extracting value from unsold stock, and then bring them to reality. The company itself does not necessarily handle the goods if there is no call for this, but can do so where necessary. Supplying the physical infrastructure is Ark-H Handling, the established fulfilment business, which jointly owns the new business.

'We might put some stock out to traditional jobbers,' Tucker says, 'but could re-package or *white-label' other items, depending on their condition and the likely demand.' He sees the organisation's function as partly to put major retailers in touch with secondary brand retailers, exploiting previously untapped synergies between them.

Additionally, the new business has access to retail web sites within its own group, including for instance myidealbuy.com, a web site powered by hosted solutions specialist Venda. Some recovered product could be sold on of by this route.

'It's all about recognising process and value,' Tucker says.