Returns management is a critical component of the overall supply network. However, most companies typically concentrate on maximizing forward logistics processes. As a consequence, few businesses have developed and implemented procedures for managing and tracking returned goods, leading to excessive warranty exposure, transportation costs, product obsolescence, high repair costs and dissatisfied customers.
Summary of Returns Management Process:
- Returns management authorization (RMA)
- Collection of products
- Defect screening
- Repair, repackaging and reconfiguration
- Track and traceability (by serial number)
- Restocking into B inventory
- Returns and credit