Return Management Processes

**How to Manage Reverse Logistics Effectively** Handling reverse logistics well can save costs and keep customers happy. Here are some simple strategies to master it: 1. **Set Clear Policies**: Make sure your return, exchange, and repair policies are easy to understand. For example, offer a 30-day return window with a clear process for returning items. This reduces confusion and improves customer satisfaction. 2. **Streamline Operations**: Simplify the steps to process returns. For instance, have a dedicated team to quickly inspect and categorize returned items. This speeds up the process and reduces costs. 3. **Track Returns**: Use tracking systems to monitor the status of returned items. Like how online orders have tracking numbers, returns should too. This helps in managing inventory and improves service. 4. **Analyze Return Data**: Look at why items are returned. If a lot of customers return the same product, it might have a quality issue. Fixing this can reduce future returns and improve your products. 5. **Work with Partners**: Coordinate with suppliers and logistics partners to handle returns smoothly. For example, collaborate with a logistics company that specializes in returns to streamline the process. 6. **Communicate with Customers**: Clearly inform customers about how to return items. Send easy-to-follow instructions with their orders. This makes the return process hassle-free and keeps customers happy. 7. **Improve Continuously**: Regularly review your return processes. For instance, if you notice delays in processing returns, find ways to speed it up. Continuous improvement helps in cutting costs and enhancing efficiency. By following these steps, businesses can manage reverse logistics effectively, leading to cost savings and happier customers. #ReverseLogistics #SupplyChain #CustomerSatisfaction #LogisticsManagement #freightbroker #logistics

Most fulfillment centers are designed to fail at returns. 📦 We spent decades optimizing for one direction: getting products out the door fast. But nobody planned for 20% coming back. The result? Returns sit in a corner, lose value, and bog down your outbound flow. Here's what I told Bridget McCrea and Modern Materials Handling Magazine: If you try to manage shipping and returns in the same facility, returns will always be the second priority. The solution isn't better prioritization. It's separation. ✂️ Smart operators are building dedicated return centers or partnering with specialists who use AI to sort, price, and resell at scale. With $890 billion in retail returns last year and online return activity up 40%, this isn't a nice-to-have anymore. It's infrastructure. Stop treating returns like an afterthought. Build for the reverse flow or watch your margins disappear. 📉 Read the full article: http://bit.ly/4gWCaS2 #SupplyChain #Logistics #Ecommerce #ReverseLogistics

#Returns and #RMAs. Let's get this party started. 🎉 Not returns software, I’m talking about the actual product movement. Start with a flow chart. Document the process steps and how each action or decision can flow. Determine at what point a handoff is made from one department to another. Now review to see if any parts can be merged or eliminated. The more manual processes that your company follows, the less scalable it is. • Identify how your #inventory tools will be impacted as any replacement units that can’t be repaired come out of new inventory. •What is the #warranty % for each product. •How will #integration work to ensure the data is being synced properly? Otherwise, financial reports will be incorrect and so will the demand plan. #Automate: 1) Refunding the order - a part is scanned and then automation will generate the refund. Communication with the customer is complete, but there are still internal steps. 2) Repair/Refurbish - This is where both the repaired items and the determination of whether any parts can be cannibalized will happen. Automation includes having barcode stickers on hand for any parts that can be reused. Each part needs it's own #SKU and #barcode. As they are placed on the warehouse rack they can be scanned again which will automatically enter that SKU and quantity. The same can be said in reverse, if parts are used to build another unit, scan them and mark their new status. It may seem like effort to label and scan but keep in mind that every part is an asset, every broken part is a loss and anytime parts are unaccounted for, that is lost profits. 3) Warranty - Track the return reason code so you know which parts need to have manufacturer's claims made. The hidden cost to warranty claims: $ Staff time, (how much per hour?). $$ Additional product if it's a replacement. $$$ Lost customer acquisition cost of product not being available to sell to new customers - CAC is a real number so you need to make sure it's applied here when that happens. $$$$ Reverse logistics of shipping the product back to you. $$$$$ Repair and diagnostic time. $$$$$$ Shipping the customer a new order. $$$$$$$ Customer service time (again). $$$$$$$$ Management time to negotiate with factory on warranty reduction. Think of time ⏰ as a financial asset and any excess time used on a task is a loss. 📄 The better your documentation the more efficient your processes will be. It's critical to have fresh training on this quarterly to keep the existing employees from getting complacent and taking shortcuts and to give any new staff time to adapt. On Sept 27th, tune in here for a webinar with me and Mark Yeramian, CEO of Moast for some great tips on how to avoid returns in the first place and improve customer confidence. On Sept 28th, join me along with Bailey N. of Frate Returns, Jake Disraeli of Treet, and Shakarah Dean of Kirrin Finch to delve deeper into How to Reduce Black Friday Returns

Warehouse Wisdom Wednesday! Let’s break down some warehouse basics. This week: Returns Hmm, maybe not so basic when you break it down but inevitable! Now that we’ve gotten our product to the customer, there are many reasons why the customer might want to send the product back to you. This is the start of the returns process. Returns simply means the process of getting product back from your customer and processing it into a different result. This result could be back into inventory to sell again, refurbishment, donation or potentially disposal (hopefully you can avoid that). The issue with returns is that it can be messy. With customers sending product back in many different ways it is somewhat unexpected on what you can receive and this is part of the reason returns often gets hidden in a corner within the warehouse and maybe doesn’t get as much love as it should. How can you get a handle on returns? Put these key processes in place: Inspection - make sure the correct items have returned (and that they are actually items that you sell!), inspect for any potential damages, check any documentation and verify the customer. Verification - match up the return with what was expected in your system and verify the right items were returned if not navigate the exception swiftly. Categorize - as you have multiple returns they should be categorized by where they will go. Will they be put back to stock, disposed of, refurbished or donated. Clear determining factors will help enforce that items go into the right category. System processing - processing product into the system against the proper customer will ensure the right customer is credited and your inventory is properly updated. There are many different steps that can occur in the returns process but these are some of the key ones to include in your process. Capturing data for returns reasons and different categories is key to driving continuous improvement efforts at all levels of the business. Emphasis on the importance of returns is critical as products that come back have the potential to result in sales but they must be processed and returned to stock for availability quickly. Especially seasonal items. These are some high level basics on returns and in the Warehouse Wisdom Wednesday newsletter I’ll dive deeper. What would you add? 🧠 Sign up for the newsletter here: https://lnkd.in/eJP6sXh8