The returns management process is the part of supply chain management liable for collecting, organizing, sorting, and restocking inventory that has been exchanged or returned.
Returns management goes beyond the ultimate delivery and isn't used for all customer orders.
By properly vetting and sorting returned products, and dealing closely with suppliers, you'll significantly cut losses by using undamaged returned items to restock warehouse inventory.
Returns Management Process
The process of returning a purchased product depends on whether it had been purchased online or in-store.
For e-commerce businesses and enormous appliances with home delivery options, these are the stages the merchandise will go through:
1. Customer receives the product, is unhappy, and requests a refund or return
The returns process starts when a customer decides they aren’t satisfied with the item. Maybe the item is damaged, or in the case of clothing, it might just be the incorrect color or size.
The customer requests a refund, return, or exchange from the company that delivered the item using the right channels.
2. Company approves or disapproves the exchange, return, or refund
The service staff will decide whether or not the customer is eligible under the company’s returns policy.
3. The company picks up the item from the delivery address
Companies handling returns internally, struggle a lot to optimize the routes of both pickups and deliveries as last-minute orders are difficult to adjust.
4. The merchandise is delivered back to the warehouse and is inspected
A delivery guy returns the merchandise to a warehouse where the items are inspected for quality, sorted, and organized.
Why the customer returned the product? Was the item damaged during the delivery or return process? Has the product crossed the inspection stage successfully and is it ready to get restocked?
After the products are sorted, an auditor will inspect all the returned items and check them out to answer those questions.
5. The item is restocked in inventory
If the item is in a suitable condition, it'll be restocked in the warehouse shelves, added to the inventory count, and may now be sold to other future customers.
Reverse Logistics vs. Returns Management
Reverse logistics is a process to retrieve returned items or reusable packaging from customers and sorting and delivering it to suitable locations.
Having a well-tried and tested reverse logistics process is a very good way to optimize how quickly returns are processed and minimize the amount of time and gas expenses that are made in a return process.
Logistics is undoubted, a key part of return management, but managing these returns also involves software integrations, preventative measures, and more.
Return & Refund Policy: Ways to Use it to Drive Sales
A return and refund policy is simply what it seems like — It is a policy that lays out terms for applying for a refund or returning your products.
The company must cover all the terms and conditions for the return, like the valid period, if it must be in the original packaging, also whether or not the client will cover the shipping amount.
73% of consumers in 2019 said that the returns experience does affect whether or not they will keep shopping with a brand.
Best Practices of Returns Management
For big companies with many incoming returns and outgoing deliveries, it is often difficult to efficiently manage the workforce and maintain profit margins.
By following these best practices of Returns Management, you'll be able to offer better customer service:
1. Incorporate reverse logistics
Start incorporating reverse logistics processes into your deliveries, if you haven’t already.
If a delivery driver is already in the neighborhood, the power to quickly redirect them to form a return pickup delivers an excellent customer experience and helps your company save mileage and plenty of time.
2. Plan routes for both returns and deliveries
When planning a schedule and routes for deliveries, include product returns in it.
3. Plan ahead with returns in mind
When planning delivery routes, leave a buffer supported by the typical quota of returns you’ll get to devour.
Expected product returns should also impact your plans for resupplying products in warehouses.
4. Increase capacity for holidays
It’s not just sales, you'll face a robust increase in product returns as well during the vacation season.
The gift-giving culture results in a big surge in both return and refund requests, thanks to wrong sizes or duplicate products.
Without proper planning, this will become an enormous operational headache and hamper your delivery fleet.
Conclusion -
There is no need for an upscale returns management software solution to improve how your process returns.
With fleet management software and flexible route planning, it is approachable to include return pickups as a part of the delivery process. Improving the speed of the returns service and convenience will lead to a better customer experience.