Honeywell Technology Helping Make Returns More Profitable and Sustainable for Retailers
Honeywell becomes authorized reseller of Optoro’s return optimization platform, which uses machine learning to route returned purchases to most profitable and efficient channels
Honeywell is helping retailers better manage returned purchases and excess inventory by becoming a value-added reseller of Optoro’s returns optimization platform.
As part of the arrangement, and in close cooperation with Optoro, Honeywell will offer retailers Optoro’s cloud-based, data-driven solution on its Mobility EdgeTM mobile computers. Optoro’s end-to-end returns optimization platform helps retailers manage, process and decide next steps for returned and excess inventory.
The number of consumer returns continues to grow each year. Retailers estimate more than 10 percent of their total annual sales to be returned, according to recent data from the National Retail Federation.
“Reverse logistics is becoming a complex challenge for retailers as they need to move returned goods within the supply chain as quickly as possible to reduce bottom line impact,” said Peter Howes, president of Honeywell’s Productivity Products business. “With Optoro running on our Mobility Edge Platform devices, retailers can quickly connect returns with best available opportunities to turn the products into revenue.”
Optoro’s software uses proprietary algorithms to determine how to best disposition a returned item to get maximum value. The algorithm’s decision logic can be applied to any part of the reverse supply chain, including the back of the store, a warehouse, or a customer self-service tool. Merchandise can now get back into the supply chain more efficiently, coordinating efforts on the sales floor and in the stock room.
“The retail industry is quickly evolving, and retailers and brands are demanding innovative solutions that drive revenue and increase customer engagement,” said Tobin Moore, CEO and cofounder of Optoro. “We are excited that our platform will be part of the Honeywell ecosystem as we look to help retailers and brands reduce financial, operational, and environmental waste from returns.”
While returns can pose a logistical challenge for retailers, a simple, easy-to-follow return process is also an ingredient of good customer experience. Optoro’s State of Retail Returns 2018 Study revealed nearly seven out of 10 retailers believe returns are vital to creating a good customer experience. Ninety-seven percent of consumers are likely to purchase again from a retailer with which they had a positive returns experience, according to the study.
“Honeywell has a consistent track record of bringing innovation to retail, and our expansive network of independent software vendors including Optoro helps us define solutions that deliver to our customer experience,” Howes said. “We’re able to combine all the hardware and software needs in one place to help retailers automate and optimize processes to make them profitable.”
Honeywell and Optoro will offer live demonstrations of the solutions at the NRF Big Show Jan. 13-15. For more information about the collaboration, visit us at booth #3257 or online at www.honeywellaidc.com/solutions/connected-retail.
Honeywell Safety and Productivity Solutions (SPS) provides products, software and connected solutions that improve productivity, workplace safety and asset performance for our customers across the globe. We deliver on this promise through industry-leading mobile devices, software, cloud technology and automation solutions, the broadest range of personal protective equipment and gas detection technology, and custom-engineered sensors, switches and controls. We also manufacture and sell a broad portfolio of footwear for work, play and outdoor activities, including XtraTufTM and Muck BootTM brand footwear.