Returns Management
Returns management can be defined as the management that invites the merger of
challenges and opportunities for inbound logistics. A cost-effective reverse logistics program
links the available supply of returns with the product information and demand for repairable
items or re-captured materials. We have three pillars that support returns management
processes. These are as follows −
Speed − It is a must to have quick and easy returns management and automate decisions
regarding whether to produce return material authorizations (RMAs) and if so, how to
process them. Basically, the tools of speed return processing include automated
workflows, labels & attachments and user profiles.
Visibility − For improving the visibility and predictability, information needs to be
captured initially in the process, ideally prior to delivering the return to the receiving
dock. Most effective and easily implementable approaches for obtaining visibility are
web-based portals, carrier integration and bar-coded identifiers.
Control − In case of returns management, synchronizing material movements is a
common issue that needs to be handled. The producers need to be very cautious and pay
close attention to receipts and reconciliation and update the stakeholders of impending
quality issues. In this case, reconciliation activates visibility and control all over the
enterprise. The key control points in this process are regulatory compliance,
reconciliation and final disposition and quality assurance.
Software solutions can assist in speeding up the returns management by supporting user
profiles and workflows that state supply chain partners and processes, by labeling and
documentation that tracks the material along with the web-based portals and by exception-based
reporting to deliver information for timely reconciliation. These characteristics, when executed
with the three pillars mentioned above, support a reliable and predictable returns process to
count value across the company.
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