FedEx and GENCO: A Powerful Combination
t’s no secret that companies across a broad spectrum of industry segments – from retail, electronics and consumer goods to healthcare, high-tech and government – are increasingly turning their attention to reverse logistics as a catalyst to drive supply chain optimization.
By improving reverse logistics processes, both business-to-consumer (B2C) and business-to-business (B2B) organizations of all sizes realize they have the potential to add as much as five percent to the bottom line and, just as importantly, bolster customer satisfaction. In fact, the potential impact to profitability by implementing an optimal reverse logistics solution can be much greater than forward distribution – making it a crucial strategic tool in differentiating companies from the competition.
According to a January, 2015, report from IBISWorld, the U.S. reverse logistics industry is projected to grow another 18 percent, from $6.1 billion in 2015 to $7.2 billion by 2020. In an age where an estimated 15-20 percent of all online purchases are returned, the focus on reverse logistics will only continue to intensify.
Best-in-class reverse logistics
At FedEx, our customers in numerous market segments – especially retailers and e-tailers – have been requesting a more robust portfolio of dedicated reverse logistics capabilities to complement our forward-facing supply chain solutions. While our portfolio includes several solutions to help our customers more efficiently manage their returns in-house, we have been receiving an increasing number of requests to offer outsourced dedicated reverse logistics services – to operate return centers and provide custom solutions to maximum recovery efforts.
With the percentage of product returns continuing to rise, it was clear that we needed to offer our customers true “cradle-to-grave” capabilities that can reduce their total cost of product ownership.
That’s why the recent acquisition of Pittsburgh-based GENCO is such a perfect fit for FedEx. GENCO is widely regarded in the industry as the pioneer of reverse logistics as a professional discipline. Both companies have similar corporate cultures, and GENCO shares the FedEx commitment to making every customer experience outstanding and delivering exceptional service.
As Stifel Nicolaus analyst David Ross commented in a research note following the acquisition announcement, FedEx is buying a quality, complementary company with a strong industry position, keeping its leadership intact.
With the acquisition of GENCO, the leader in product lifecycle logistics®, FedEx has expanded our industry-leading portfolio of transportation, e-commerce and business solutions to include world-class return center operations, return-to-vendor processing, recall management, liquidation and test, repair and refurbishment services.
GENCO currently operates more than 130 value-added warehouse operations and processes approximately half a billion returned items annually for a diverse range of customers in the retail, consumer and industrial, technology, healthcare, and government sectors. The company helps customers to improve cash flow, clear inventory, streamline operations, manage compliance with internal policies and vendor agreements, reduce labor hours and maximize the value for returned goods through a wide range of liquidation channels including GENCO Marketplace and nobetterdeal.com. In short, GENCO enables organizations to efficiently process and monetize returned products – and focus on their core competencies.
With the acquisition, GENCO customers now have access to the FedEx air and ground networks that cover more than 220 countries and territories, linking more than 99 percent of the world’s gross domestic product (GDP). This opens up the possibility of expanding to new markets around the globe.
More robust supply chain management capabilities
While FedEx has long had a presence in supply chain management, our current solutions are focused on forward logistics, particularly for customers with high-value products or complex supply chain requirements. We have specialized in providing end-of-runway solutions for healthcare and high-tech companies that have mission-critical service parts and highly time-sensitive inventory. We also provide solutions that utilize our extensive network of global distribution centers (GDCs) and forward stocking locations (FSLs) in more than 24 countries.
With the addition of GENCO, FedEx can expand our global third-party logistics provider (3PL) capabilities to a broader range of market segments – in particular retail and e-commerce. The combination of the two organizations is expected to result in more solutions and options that better meet each customer’s unique supply chain requirements. We’ll be able to create and customize business models that deliver a wide array of forward and reverse logistics services, including warehousing and fulfillment, transportation management, service parts logistics, contract packaging, product configuration, returns management, and liquidation.
As the reverse logistics market continues to grow, the goal of FedEx and GENCO is to continue introducing the innovative, integrated solutions our customers need to keep driving cost efficiencies – and adding to their bottom line.
Sandy McCurdy is Senior Vice President of Strategic Planning, Communications and Contractor Relations for FedEx Ground, headquartered in Moon Township, Pennsylvania.
Sandy joined FedEx Ground in 2000 with more than 10 years of experience in financial planning and analysis. In 2007 she was promoted from Managing Director to Vice President of Finance. Her extensive knowledge of the financial world made her the ideal choice to become the Vice President of Strategic Planning in 2012 before assuming her current role in 2013.
Sandy is active in the community and industry. She serves as Chairman of the Board Elect to the Pittsburgh Chapter of the American Heart Association and is also a member of the Conference Board.
As an accomplished leader, Sandy attended the FedEx Executive Leadership Institute in 2003 and participated in the FedEx Excel Leadership Program in 2012. She has also been honored with the company’s most prestigious award, the Five Star Award, on three separate occasions, and the FedEx Ground Leadership Award twice.
Sandy is originally from Moon Township, Pennsylvania. She earned her B.B.A. from Kent State University, and her M.B.A. from the University of Pittsburgh’s Katz Graduate School of Business.
Sandy currently resides in Moon Township with her two children.
Ryan Kelly is Senior Vice President of Strategy at GENCO, headquartered in Pittsburgh, PA.
In this role, Ryan leads the strategic planning process, corporate development initiatives, and the integration of GENCO with FedEx. Ryan is also responsible for managing the Marketing and Business Development functions within the company. A member of GENCO’s senior management team, Ryan is a key strategic partner for all of GENCO’s business units.
Ryan came to GENCO through its 2010 merger with ATC Technology Corp., for which Ryan was Director of Corporate Development, Planning, and Analysis. Immediately after the merger, Ryan was appointed Vice President of Strategy for GENCO. Previously, Ryan worked at Robert W. Baird & Company and J.C. Bradford & Company in their capital markets groups, holding positions in equity research, corporate development, private equity, risk management, and investment banking.
Ryan earned his bachelor’s degree in business administration from Loyola University New Orleans and his MBA with concentrations in finance, accounting, and strategic management from the University of Chicago, Booth School of Business.