Returns management presents both opportunities and challenges for inbound logistics. Non-compliance penalties and waste management regulations and are constantly increasing. Rising commodity prices and a growing secondary marketplace, however, create a chance to recover value from used and scrapped materials.
A cost-effective reverse logistics program connects the incoming supply of returns with the merchandise information and demand for repairable items or re-captured raw goods. Three pillars that support returns management processes are speed, control, and visibility.
Speed
For easy and smooth returns management, automate decisions about whether to get return material authorizations (RMAs) and the way to process returned material. Three tools to hurry returns processing are:
Automated workflows
The disposition of the return depends on data points scattered throughout the enterprise: the item's value and materials, repair scope and price, return source, and customer service contracts. Automating workflows drives repeatable processes and a consistent routing that's efficient and measurably faster.
Labels and attachments
Automated workflows generate labels and shipping documents, and validate RMAs. Accurately labeled shipments with the required paperwork and pre-addressed, carrier-compliant labels experience fewer delays and make a predictable inbound return stream.
User profiles
Profiles simplify user maintenance and permissions. User groups share attributes like physical locations, service contracts, payment terms, and merchandise return eligibility.
Handling inbound return shipments effectively helps in increasing value recovery.
Visibility
To improve visibility and predictability, information must be captured early within the process, ideally before the return is delivered to the receiving dock. Three of the foremost effective and easy-to-implement approaches to obtaining visibility are:
Web-based portals
These online tools allow authenticated users to perform tasks from any location and zone. Integrating Web-based portals with product data and financial applications provides consistent and accurate information across various networks of producing locations, business units, and third-party service providers.
Carrier integration
Linking RMAs to carrier tracking numbers provides shipment visibility, both through automated notifications and within Web-based portals.
Bar-coded identifiers
Accurate inbound shipment information—including condition, parts, dates, and quantity—ensures the receiving dock and repair depot are stocked with the labor and equipment required to handle and process returns.
Control
Synchronizing material movements may be a common supply chain management challenge, especially for returns. Manufacturers should pay attention to receipts, and notify the stakeholders of impending quality issues. Reconciliation enables enterprise-wide visibility and control. Three control touchpoints to create into the returns management process are:
Regulatory compliance
Compliance touches all aspects of the reverse logistics process. Additionally to national borders and individual state regulations, shippers must follow industry-specific regulations, like those governing food and drug safety. Workflows wont to speed up the method also provide controls that minimize corporate liability.
Reconciliation and final disposition
Labeling and enterprise data integration reconcile RMA information with physical shipment, value, and data.
Quality assurance
Timely feedback helps teams address the root causes of returns. Product engineering identifies internal control issues. Distribution centers review outbound shipment accuracy. Finance quantifies financial exposure and risks. Automated communication and metrics for every team improve quality throughout the enterprise.
Handling inbound return shipments quickly and efficiently increases value recovery—from repairing or reselling the item or its raw materials—and decreases costs incurred through storing scrapped parts or waste management fees. Software solutions can help speed returns management by providing user-profiles and workflows that outline supply chain partners and processes; labeling and documentation that track the material, and Web-based portals and exception-based reporting to deliver information for timely reconciliation.
These features, implemented with the three pillars, support a reliable and predictable returns process to supply value across the enterprise.
You might also like to read - The Rising Importance Of Returns Management
Comments