Supply Chain Management

So out of the discussions I came up with a few points that I think should be considered while designing the future process for returns for a high volume retailer. I would take up those in this post as well as next few posts. Develop a Return Channel strategy - Using same return policies across the product categories might make an attractive marketing pitch but it comes with costs attached. As much as the logistics professional would like the product return policies to be different for each type, it is not possible in consumer centric world. So the answer is to do a categorization in the way the Returns are handled after the product has been physically received from the customer. For example, why should a stationery item be handled in the same return channel as an electronic item? One size fit all return channel solutions should be avoided at all costs. Analysis of the products, return reasons and vendors agreements is required to define the best channel for processing the return. Certain products with specific return reason code that are headed towards disposal should be channelized into a different channel from the earliest. Items that can be refurbished or restocked for sale should be identified at the earliest touch point and rerouted. It might be economical to outsource return channel for certain product groups to specialist service providers or even vendors. This calls for developing a comprehensive Return Channel Strategy by product categories based on principle of subjecting products to minimal handling and entwining Reuse and Reprocess with Return flow. I would continue with other key points in my next post......