In supply chain management process, returns management is the part which deals with the material returned from retail stores. The activities that are covered as part of returns management are reverse logistics, gate-keeping, and avoidance. Although organizations have ERP or SAP software to manage forward logistics supply chain program, sometimes they fail to include the returns management process into the program.
It is important for companies to give high priority to returned material; these goods should be accounted for accurately so that the organization is able to re-work on them and covert into ROI again. The returned materials are usually divided into four categories: items for re-packing, items for repair, items for re-work and items for scrap.
Those that come under re-packing require immediate attention because there is no defect in the product. The defect lies only in the primary or secondary packaging. The items are again sent back to line or sometime, even to the same retailer immediately after re-packing. This activity is covered in 24 hours time to avoid delay.
Those that come under repair may need to undergo minimum amount of re-work. The manufacturer allocates jobs or tasks to other divisions or departments to take up the jobs as part of their regular work schedule. These items are given priority compared to regular jobs.
Items for rework are those that may require large amount of activity. Some parts may be in damaged condition and they may require the material to be sent back from the start of the supply chain process. Items under this category usually take a long time to get back to sales line, so this process is undertaken based on assessment done by manufacturer with regard to its future sale value.
Items that can no longer be repaired or reworked need to be scrapped immediately. Since manufacturer also earns from scrap yard sales, it is important to make the 'scrap' decision faster.
By getting the best solution implemented for reverse product flow, the organization will be able to recycle or rework on the goods and send them back to sales line as soon as possible. Supply chain solutions from leading market players are capable of seamlessly integrating with existing supply chain management solutions and bring economic benefits to the enterprise. - 30242
It is important for companies to give high priority to returned material; these goods should be accounted for accurately so that the organization is able to re-work on them and covert into ROI again. The returned materials are usually divided into four categories: items for re-packing, items for repair, items for re-work and items for scrap.
Those that come under re-packing require immediate attention because there is no defect in the product. The defect lies only in the primary or secondary packaging. The items are again sent back to line or sometime, even to the same retailer immediately after re-packing. This activity is covered in 24 hours time to avoid delay.
Those that come under repair may need to undergo minimum amount of re-work. The manufacturer allocates jobs or tasks to other divisions or departments to take up the jobs as part of their regular work schedule. These items are given priority compared to regular jobs.
Items for rework are those that may require large amount of activity. Some parts may be in damaged condition and they may require the material to be sent back from the start of the supply chain process. Items under this category usually take a long time to get back to sales line, so this process is undertaken based on assessment done by manufacturer with regard to its future sale value.
Items that can no longer be repaired or reworked need to be scrapped immediately. Since manufacturer also earns from scrap yard sales, it is important to make the 'scrap' decision faster.
By getting the best solution implemented for reverse product flow, the organization will be able to recycle or rework on the goods and send them back to sales line as soon as possible. Supply chain solutions from leading market players are capable of seamlessly integrating with existing supply chain management solutions and bring economic benefits to the enterprise. - 30242
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Returns management solutions from leading supply chain solutions can enhance money value to returned goods.
