Supply Chain Management

Chapter 11 : Returns Management

Reverse Logistics

Packaging Return and Reuse
Product Recall Returns Management

Need for Returns Management

Returns Management Processes

Strategic Returns Process

Review of Environmental and Legal Compliance Guidelines
Developing Return Avoidance, Gatekeeping and Disposition Guidelines
Developing Return Network and Flow Options
Developing Credit Rules Governing the Returns Process
Developing the Framework of Performance Metrics

Operational Returns Process

Receiving Return Request
Determining Routing
Receiving Returns
Selecting the Disposition Option Crediting Consumer/supplier
Analyzing Returns and Measuring Performance

Disposition Options

Direct Reuse
Product Recovery Management
Waste Management

Challenges in Returns Management

Retailer-Manufacturer Conflict
Lack of Information
Not Understanding the Importance of returns Management

Use of Information Technology in the Returns Management Process

Capability
Compatibility
Technologies.

Chapter Summary

Returns management is a neglected area in supply chain management, as the focus of firms has been only on how to move the products to the customer effectively. Now with increasing competition, changing customer preferences and more stringent government regulations, firms are also focusing on the management of discarded and returned products.

Returns management refers to the physical handling and disposition of returns. In this chapter we first discussed the need for an efficient returns management process. Then, we examined the strategic and operational returns processes. The strategic returns process involves devising returns avoidance, gatekeeping and disposition guidelines, planning transportation and facility networks to support the returns flow, developing credit processing guidelines and setting up performance metrics.

The operational returns process involves receiving the return request, determining the routing of the product, choosing the right disposition option, credit processing and analyzing the returns and returns management performance. Next, we studied the challenges in the returns management process.

The key challenges faced by firms in implementation of the returns management process are retailer-manufacturer conflict, lack of information regarding returns flow, and insufficient focus on the returns management process. Finally, we discussed the use of information technology in the returns management process.

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