Message from the President

by Gailen Vick, Reverse Logistics Association

Reverse Logistics Magazine, May/June 2008

I constantly visit with manufacturers, retailers and third party service providers around the globe who are in the process of implementing sophisticated new processes, computer systems and scanning devices. When I ask why the new processes and systems, the story is always the same. “We have to become more efficient and improve our process times in order to reduce our cost.” Where is the pressure coming from to make all these changes, I ask? “The world is very competitive and if we don’t serve our customers with constant improvements and cost reductions it will be just a matter of time before we’re out of business.”

We are no different here at RLA, we are constantly are reviewing our systems and processes to determine if there’s a better way to improve our efficiencies in order to lower cost and get more done. On that point of getting more things done, there a couple ways to accomplish that objective;

• Improve processes through training and implementing best practices
• Outsource processes to partners that are trained and have best practices

Since RLA is only six years old, we had the advantage of implementing new technologies that were not available just a few years ago. There are no legacy systems found here. What freedom that has given us. Everything here at RLA is web driven. So you will find Internet driven databases and productive application tools.

We have a philosophy that whenever possible, outsource. Even when the upfront costs appear prohibitive, the long-term effect is freedom to make more choices in the future to stay current and agile.

One year ago, I notified all of our employees that we were moving RLA headquarters to another state. Our Director of Technical Services, Luis DeGuzman decided not to move with us. We were disappointed at first because he’s been such an invaluable resource over the last three years. But then he came up with a great idea-- he felt it was possible to find a third party to whom he could outsource his responsibilities. Well, Luis completed his search and over the last 2 months has been able to bring this third party up to speed. Both Luis and I are surprised at just how well they have integrated their company into our trade association.

My point is that sometimes your systems, processes and core competencies might not be as mission critical as you think. Be careful and watch out for bad habits and “that’s the way we do it” that might overcome your sense of direction. Don’t allow your company to be slowed down by legacy systems and limited internal resources.

Our editor, Christine Morrow has now successfully published 12 editions of RL Magazine over the past two years. Some of you might say, “what’s the big deal, that’s her job.” I would agree with you if she had had a staff of five or 10 people, but Christine has outsourced the design, print production, domestic and international mailing, which has freed her up to manage the fast changes while staying away from the expensive infrastructure and legacy systems. Every day of the week she manages six outsourced partners to deliver the results that you have in your hands. With a circulation approaching 80,000, Christine has cultivated unbelievable content from industry thought leaders. These six outsourced partners work hand-in-hand with Christine and appear more employed with us than if they were on the payroll.