What is a return?

Implementing Effective Returns Management

Managing returns effectively is an integral part of a comprehensive supply chain strategy. With the power to improve profitability, customer satisfaction, and overall efficiency, having a comprehensive returns management strategy can make all the difference.

What is Returns Management?

In distribution, returns management refers to the processes associated with returns and reverse logistics. Primarily relevant in retail, e-commerce, and other customer-facing industries, the returns management process encompasses activities associated with fulfilling customer requests to return or exchange a product. This includes collecting, organizing, and restocking returned or exchanged inventory. The returns management process is intersectional, involving facets of customer service, logistics, and inventory management.  Reverse Logistics refers to the process of receiving, inspecting, sorting, and delivering returned products to the proper distribution center, third-party management firm, or back to the manufacturer. It is an integral part of the returns management process.

By implementing an effective returns management process, organizations can track and fulfill return requests, decrease unwanted returns, and put highly sought-after items back into inventory for resale once inspected. By accurately scrutinizing and sorting returned products, businesses can dramatically reduce losses by reusing undamaged returned items to replenish inventory. The SSI Carrier enables an easy sortation solution for this type of management. 

Although returns handling is commonly regarded as an inconvenience for both customers and businesses, the process can be improved and streamlined with the help of warehouse automation equipment and software. E-commerce sales continue to grow rapidly, resulting in both higher return rates and customer expectations. To stay competitive, businesses must implement and optimize effective returns management processes.

Returns Management Best Practices

Companies with hundreds of outgoing deliveries and incoming returns can find it difficult to optimize the returns management process to maintain profit margins. By following best practices, organizations can strategize or optimize a tailored returns process, increasing customer satisfaction and reducing losses.

Identify Opportunity Areas to Improve Speed, Agility, and Control

Referred to as the main pillars of returns handling, speed, visibility, and control are the focus areas of a smart and snappy process.

Speed

To save maximum time and keep customers satisfied, consider automating decisions related to approving returns and processing returned material. This can be accomplished by utilizing automated workflows and labels. This allows technology to oversee repeatable processes, increasing accuracy, and employee bandwidth. Shipments that are automatically addressed and labeled with accurate documentation experience fewer setbacks.

Visibility

Capture information about each return before it even arrives at the receiving facility. Ensure that each return is linked to a reliable tracking number and equipped with accurate inbound shipping information including quantity, condition, and other relevant data. When the return arrives, it can remain visible for the remainder of the process by utilizing reliable warehouse management software. 

Control

Maintaining control over inventory flow is challenging for busy operations, particularly when handling returns. Implement a system to track receipts, compliance documents, and solutions reached. Not only can this reduce company liability, but also notify stakeholders of quality issues in product and process. Additionally, labeling and enterprise data integration are effective ways to maintain control during returns handling. These touchpoints combine information about the return with physical shipment and financial information, producing more timely solutions.

Invest in Automation and Warehouse Management Technology

Modern warehouse automation equipment and software produce profitable results when utilized to streamline returns handling. By incorporating a warehouse management system that can handle returns efficiently, the process of inspecting and getting an item back into inventory for resale is key. A good WMS should be able to know when an item is being returned and be able to have that item ready for quick processing upon receiving. 

Warehouse Management Software like WAMAS allows organizations to effectively control the order pool, prioritizing high priority shipments including returns, ensuring your customers’ needs are met and they keep returning to your business.

SSI SCHAEFER also offers customized solutions to help warehouses get returned inventory available for sale quickly. Specially designed workstations help process returned goods swiftly. Additionally, the SSI SCHAEFER modular pocket pouch sorter allows for incredibly efficient procedures for short-term storage, buffering, and restocking.

Choosing the Best Solution for Your Application

Investing in technology to improve the returns management process can produce positive long-term results. Reach out to the team of supply chain experts at SSI SCHAEFER to learn more about custom solutions that help optimize returns management, improving operating costs and customer relationships.