Blubirch, a leader in reverse supply chain management, uses AI and ML to transform returns for retailers. In an interview with TimesTech, Chief Growth Officer Sudhanshu R Sharma discusses the impact of their Returns Automation and Monetization Platform (RAMP), guided by CEO Sapan Jain’s vision. RAMP has reduced costs, enhanced efficiency, and promoted sustainability in retail and manufacturing.
Read the full interview here:
TimesTech: Could you detail the advanced technologies that Blubirch employs to optimize returns management and support the circular economy?
Mr. Sudhanshu: E-commerce players typically grapple with their one-fit-for-all rigid returns policies that may not suit all customers. Blubirch’s Returns Automation and Monetization Platform (RAMP) is a cloud-based platform that employs Artificial Intelligence (AI) and Machine Learning (ML) to automate and optimize the entire returns process.
The best place to prevent a return from happening is at the point of sale. Currently, regardless of the returns history of the customer, every customer gets offered the same returns policy. Blubirch’s Dynamic Returns Policy solution enables the retailers and brands to provide a customer-specific returns policy. The solution enables It is right at the pre-initiation stage of the reverse supply chain process our RAMP’s Dynamic Returns Policy comes to the rescue of retailers and E-tailers. When a customer logs into an E-commerce platform, Blubirch’s AI-based customer profile assessment tool gets activated immediately to identify a good customer from a risky one. It shows customer-specific returns policies based on every customer’s purchase history and past returns behavior, where a good customer gets offered a more generous returns policy, while a risky customer who has a history of too many returns gets offered a more restrictive returns policy.
RAMP also taps into AI to grade products, detect fraud and resolve issues at the source. This helps reduce the volume of returns and improve the efficiency of the returns process. RAMP leverages ML, data analytics and insights to predict return volumes and identify trends, so that our clients can better manage their returns and avoid stockouts.
Blubirch employs nanoparticle-based QR codes to track items and prevent fraud. Our platform utilizes image reconciliation to compare images of returned products to images of the products in the retailers catalog. This ensures that products are returned to the correct retailer and that they are not counterfeit, but in their original condition.
Blubirch’s extensive use of AI and ML has resulted in reduction in cost of returns by up to 40 per cent. We have also been able to improve the efficiency of the returns process by up to 30 per cent. As a result, our clients could improve their profitability and customer experience and reduce their carbon footprint, contributing further to the circular economy.
TimesTech: How has Blubirch been received by clients, and could you share examples of how the platform has positively influenced revenue, profit margins and customer experience for retailers, OEMs, brands and enterprises?
Mr. Sudhanshu: Over the years, significant investments have been made in the forward supply chain systems, processes, people and infrastructure. The same cannot be said of the reverse supply chain. Moreover, organizations were “managing” the reverse supply chain with the infrastructure, people, processes and systems that were purpose built for the forward supply chain. This has resulted in bad customer experiences, negative impact on the bottom line, revenue leakages and gaps in the internal control systems.
In this environment, clients were looking to digitize their reverse supply chain and were struggling to find purpose-built systems that would enable their processes. They are very excited about Blubirch’s end-to-end reverse supply chain enabling technology that give helps improve customer experience, improve their bottom line and increase revenue. The case studies below are a sample of what our clients are experiencing:
CASE STUDY 1
Problem statement
A large appliance company that sells through marketplaces, dealer network and its own D2C channel, has been facing challenges related to customer returns, dealer returns and warranty returns in reverse supply chain.
Solution
Blubirch’s Returns Automation and Monetization Platform [BB RAMP] helped the client manage all type of returns and across all channels through a single system. Benefits offered to the client include:
- System-driven grading and auto validation eliminated invalid returns.
- Auto approvals and resolution reduced the resolution TAT by 80%.
- Item-level tracking ensured complete accountability and no missed item.
- Real-time item level processing status reduced warehouse processing time by 45%.
- Visibility of item-level returns cost, recovery and impact.
- Granular insights into return reasons helped identify opportunities to improve the process and product, enabling returns reduction.
- Ability to plan and track tour of service executives helped eliminate claim-related issues.
- Integrated marketplace with large pool of buyers helped maximize recovery.
CASE STUDY 2
Problem statement
A leading e-com player has been facing challenges in its exchange program for large appliances.
Solution
BB Managed and Automated Returns Solution (MARS) that provides numerous decentralized returns centers equipped with cutting-edge technology, trained manpower and infrastructure for returns processing, helped the client solve its challenges with the following benefits:
- System-driven grading, including AI-based physical grading to improve accuracy.
- Multiple shared return centers with better controls to reduce logistics hops and related cost.
- Integrated remarketing platform with item-level condition visibility to buyers for better recovery.
- Dedicated return centers equipped with BB Returns Inventory Management System, trained manpower and infrastructure to make inventory sellable, eliminating inventory pileup and interference with outbound processing.
CASE STUDY 3
Problem statement
A leading large appliances brand has been facing challenges related to grading, tracking, processing and recovering capital from returns and exchange inventory lying at various dealer locations.
Solution
Blubirch offered BB Grading, BB Remarketing and BB MARS to solve for the challenges faced by the client:
- System-driven grading, including AI-based physical grading, improved accuracy.
- Multiple shared return centers closer to origin reduced logistics cost and enabled quicker processing.
- Real-time visibility of item-level status and grading along with integrated remarketing platform enabled centralized liquidation. This enabled separation of duty and eliminated the revenue leakages because of conflict of interest.
- Decentralized return centers under BB MARS providing client extended reach for collecting assets towards EPR goals.
- Large pool of buyers on the remarketing platform enabled clients for quick and optimal recovery.
CASE STUDY 4
Problem statement
A leading multi-brand retailer of consumer electronics has been experiencing continuously increasing returns volume; however, has been facing challenges as a result of the lack of a system to manage the end-to-end reverse supply chain solution.
Solution
BB RAMP allowed the client the required scalability and automation to manage current volume of returns as well as future volumes. The solution brought the following benefits:
- System-driven grading improved the accuracy and eliminated the revenue leakages from incorrect grading.
- Item-level tracking, visibility and automation across the complete return lifecycle reduced the inventory ageing to under 30 days.
- Centralized data along with auto alerts in case of missing TAT ensures timely filing of RTV and insurance claims.
- System-driven centralized liquidation enabled separation of duties and ensured recovery maximization.
- Granular insights to help identify opportunities to improve the process and prevent revenue leakages helped improve operational efficiency by 42% and bottom line by 15%.
TimesTech: Considering Sapan Jain’s extensive experience, how has it shaped Blubirch’s strategic direction, especially in terms of revenue generation, risk management and fostering innovation in reverse supply chain management?
Mr. Sudhanshu: Sapan Jain is a seasoned supply chain executive with over 20 years of experience in the industry and with degrees from IIT and INSEAD. His core strengths include business development, management, structured financing (asset-based, invoice and inventory financing), consulting, productivity improvement and program management.
Jain is a strong advocate for leveraging technology to improve supply chain operations. He has led the implementation of a slew of new technologies at Blubirch, including AI, and ML for providing 360 degree tracking of items from the manufacturing line to disposition at EOL. These technologies have helped our clients improve its visibility into its supply chain, make better decisions and reduce costs. He has a proven track record of success in driving revenue growth, improving profitability and implementing innovative solutions at various capacities across organizations throughout his career.
At Blubirch, Jain serves as the CEO and member of the Board. He has played a key role in developing and implementing the company’s reverse supply chain product strategy, and sales.
Under Jain’s leadership, Blubirch has become a pioneer and market leader in the reverse supply chain industry. Blubirch is committed to providing its customers with the best possible service and is always looking for new ways to improve its offerings.
Jain’s expertise, experience and leadership have been instrumental in shaping Blubirch’s strategic direction in a number of ways, including:
- Foster innovation by developing new products and services
- Increase revenue by identifying and capturing new market opportunities
- Improve profitability of customers by reducing operational costs and improving efficiency
TimesTech: How does Blubirch tackle common challenges related to returns in the retail and manufacturing sectors, and what sets its platform apart in providing comprehensive solutions?
Mr. Sudhanshu: The primary aspect Blubirch addresses is how to reduce returns from being generated, and if it is generated, how to optimally manage it for highest cost recovery. Blubirch’s comprehensive RAMP solution automates and streamlines the entire reverse supply chain process. It enables brands to overcome infrastructure and technology misalignment and logistics issues such as lack of visibility / transparency, poor inventory management, high transportation costs, bad quality assessment and grading, and disposal challenges. RAMP also guards them against incorrect dispositions, skewed resource allocations, as well as inaccurate metrics and performance indicators.
RAMP is tailored to the specific needs of retailers and manufacturers. Since the solution is cloud-based, it is easy to deploy and scale. By utilizing AI/ML, data analytics and deep insights, the platform can accurately grade products, detect fraud and resolve issues at the source, thereby reducing unwarranted returns. The solution’s item-level tracking, automated approvals and disposition allocation ensure faster processing times and fewer errors, resulting in reduced operational costs, improved profitability and enhanced compliance for retailers and OEMs.
Here are some of the key features of Blubirch’s RAMP solution:
- Reduce returns: Blubirch’s dynamic policy solution helps clients provide customer-specific returns policy. Further, its AI-enabled fraud detection engine helps identify fraudulent and fake returns.
- Automated returns processing: Blubirch’s platform automates many of the manual tasks involved in processing returns, such as sorting, inspecting and grading returned merchandise.
- Real-time data and analytics: Blubirch’s platform provides businesses with real-time data and analytics on their returns, so they can make informed decisions about how to improve their returns process.
- Maximize revenue recovery from returned merchandise: Blubirch empowers businesses to find the best way to dispose their returned merchandise, such as reselling it, refurbishing it or recycling it.
- Enhance customer experience: Blubirch provides a variety of tools and features to make the returns process easy and convenient for customers, such as online return portals, mobile apps and self-service kiosks.
RAMP is a powerful tool that can help businesses to reduce costs, improve efficiency and enhance the customer experience of their returns process.
TimesTech: How does Blubirch’s approach to product innovation align with its environmental and social objectives? Additionally, how does the company measure and track its impact on sustainability goals?
Mr. Sudhanshu: Blubirch’s systematic approach to product innovation is aligned with its commitment to fulfilling environmental and social objectives in several ways. Our solutions are designed to help our clients drive sustainability in the reverse supply chain.
Here are some specific examples of how Blubirch’s product innovation aligns with its sustainability goals:
- Blubirch’s unique platform improves operational efficiency and reduces costs, empowering users, customers and partners. Faster returns enhance customer experience, increasing satisfaction and ensuring better customer retention. Reselling returns aligns with sustainability and revenue generation. Data-driven insights empower informed decisions, revolutionizing the supply chain for efficiency, satisfaction and profitability, fostering innovation.
Blubirch is committed to shaping a sustainable future, particularly in the technology sector. Our core principles center on embracing the ideals of the circular economy, designing products and materials for enduring use, repair, refurbishment and recycling. We actively champion extended producer responsibility (EPR), urging manufacturers to take full ownership of end-of-life product management, thereby fostering eco-friendly designs and sustainable practices.
Additionally, Blubirch is committed to reducing the carbon footprint by minimizing the reverse cycle timelines and enhancing our logistics and supply chain. We explore eco-conscious transportation options and collaborate with environmentally aware suppliers.
Blubirch contributes positively to society by providing jobs, supporting educational programs and partnering with local organizations to heighten awareness about environmental concerns. As an innovation driver, we invest in research, exploring cutting-edge recycling technologies and collaborating with tech manufacturers for greener product alternatives. Through public campaigns and proactive advocacy, Blubirch seeks to inspire wider adoption of sustainable practices. While expanding globally, sustainability remains our guiding principle across all endeavors.
