Treadwell Distribution Centers is a full-service fulfillment company. Its clients contract with Treadwell to warehouse and distribute their goods. Treadwell also processes any returned items for its clients. Recently, the challenges associated with reverse logistics are growing.

The volume of returns has grown significantly. In order to enhance their competitive advantage, Treadwell’s clients are offering a free return policy. There is no charge for shipping items back to the warehouse. The companies provide their customers with a prepaid shipping label. In addition, there is no restocking fee. This policy, used by most of Treadwell’s clients, has driven this increase in returned items.

Up to this point, Treadwell had a computerized management system, but not one that was specifically designed for warehouse management. Its system was sort of homegrown and its capability was expanded as the business expanded. However, with the reverse logistics issues, the system is no longer viable.

In addition, government regulations and pressure from local environmental groups are creating another issue for Treadwell Distribution Centers—environmental sustainability. The environmental sustainability issue has two components that contribute to the sustainability concerns—transportation and reverse logistics. From a transportation perspective, Treadwell’s trucks are racking up an increasing number of empty miles. More often than not, the trucks are returning empty.

Reverse logistics is another matter. Treadwell is getting pressure from its clients to collect data on the returns. In the past, all Treadwell did was accept the return, follow a predetermined process to see if the return was salvageable, and either dispose of it or send it back to the original manufacturer. However, the data the clients want are much more detailed, for example, can it be repaired or refurbished? Since Treadwell’s competitors are offering enhanced data collection, so must Treadwell.

In detail explain your recommendation to Treadwell concerning their sustainability and reverse logistics issues. What actions can they take to remedy their management of these concerns and explain the benefits of taking such actions.- What is your recommendation to Treadwell concerning their sustainability and reverse logistics issues, are there any actions that they can take to remedy their management of these concerns, and explain the benefits of taking such actions- Next, are there any options concerning reverse logistics that can enable Treadwell to turn it from a liability to an asset- Explain why you believe yes, or no. Lastly, is there anyone Treadwell can turn to who can help them with the empty miles issue? If so, explain how. If not, explain why not.