Returns management is a process that needs to be carefully handled between you and your 3PL partner. It plays a significant role in handling returned goods, identifying defects, restocking, packaging, and more.
Therefore, this guide will provide in-depth details on how the returns management process is handled with a 3PL partner and what you need to be aware of.
What Is Returns Processing?
The returns processing indicates how well the 3PL handles the return process and the procedures it follows when clients return products.
Customers may have many reasons for returning products. For example, they may include defects, mis-ships, and other mistakes. Therefore, return processing consists of a couple of steps, as discussed below:
- Enclosing the reception.
- Handling returned items from end customers.
- Inspection of returned products.
- Re-routing of products.
However, all returns require handling, which is an extra cost. Moreover, even clients related to the returns should be handled with care without affecting the customer experience and satisfaction. Also, you must ensure that supply chain management is dealt with effectively to ensure streamlined operations.
How 3PL Handles Returns
Customers may request a fund return or replacement when they initiate the return. If they have asked for a replacement, you can generally give them free delivery, or they can pick up the product.
In that case, the returned product should be checked against the given complaint, and the new return order must be processed effectively. So, here’s how it’s done:
Return Merchandise Authorizations
Return merchandise authorizations (RMA) will help you handle returns effectively. They are intermediaries between you, your customers, and your 3PL.
Therefore, if an RMA is involved, and when the customer begins the order return, the RMA number is used to identify the product in the reverse logistic process. Moreover, the shipping information includes the RMA number and can be used for easy tracking.
Product Inspections
Once the goods arrive at the 3PL returns processing center, warehouse staff will analyze them. They will conduct inspections to assess the returned product against the reason it was returned.
Then, the items are used for any wear or damage. If suitable for restocking, the product is sent to the warehouse. If not, it is discarded or recycled based on the policy.
However, whether a product goes back into the warehouse depends on the product inspections. For example, food products are discarded due to safety concerns. But if it’s apparel or clothing, if the product meets standards, it will be restocked.
Suitable products may undergo a reconditioning process to ensure ideal quality. During the reconditioning process, minor damages that can be fixed will be fixed effectively.
Packaging
Do you know that packaging gives your customer their first impression? During a return management process, if you’re providing an order replacement, ensure the new product meets standards. Since you make the client unhappy, it’s time to top the client’s expectations to make a lasting impression.
Therefore, ensure that the packaging is not damaged or compromised. Ensure that it’s of top quality and markets itself.
Apart from that, if the returned product is in good condition, you can rebox it and send it for reselling.
But if you have policies like marking goods as used, good, very good, or new condition, you can mark these products and send them for resell only if these effective strategies are used to get sales from people who prefer low or discounted prices.
Defects
Defects may occur at different parts of the order processing. However, your 3PL helps you to identify these defective products and manage the work process accordingly. Depending on the type of defect, various actions are taken as follows:
- Defects products given by the manufacturer are sent back to the manufacturer.
- Certain defective products the manufacturer gives will be credited to the following order.
- If products are damaged during transit, 3PL may submit claims for carriers. The procedures will be handled accordingly.
- If the defects are related to some supply chain stages, 3PL will coordinate with the supply chain partners and carry out the process according to the policies.
Restocking
The products that can be resold will be restocked in the warehouse accordingly. However, Stock Keeping Units (SKU) handles this carefully.
If the SKU management handled the restocking procedures effectively, it would help maintain an efficient supply chain process.
What Are The Returns Processing Best Practices?
There are certain best practices to maintain during returns processing. To optimize your return processing, you can use these best practices, and it may even save time and effort:
- Certain damaged products can be repacked into large or heavy packages and sold at discounts.
- Consider analyzing the return product feedback and work on the improvements.
- If you find undamaged components in products, you can save them and combine them to make a finished product.
- Implement cross-selling strategies.
- Partner with an experienced returns processor to handle reverse logistics effectively.
- Use bundle packaging techniques to sell products with minor defects and enhance customer satisfaction.
- You can set refurbishment standards, which helps increase the resell of returned products.
What Is The Difference Between Returns Management And Reverse Logistics?
Return management is part of reverse logistics. However, they differ based on their scope and the activities involved in each process. Let’s have a quick look.
Returns Management
- Focus: Returns management handles the process of customers returning products to the company.
- Scope: Its primary scope involves customer-facing operations, such as handling refunds, exchanges, and warranty claims.
- Key Activities:
- Process return requests.
- Inspect returned goods for defects or resale potential.
- Issue refunds, replacements, or credits.
- Ensure compliance with company return policies.
Reverse Logistics
- Focus: Reverse logistics relates to the entire supply chain movement of goods from the end customer to the company.
- Scope: It has a broader scope than returns management, including all logistics processes handled.
- Key Activities:
- Transporting returned products.
- Recycling, refurbishing, or disposing of goods.
- Recovering value from returned items (e.g., resale, repair, or repurposing).
- Managing packaging and materials (e.g., recycling boxes or pallets).
Final Thoughts
In conclusion, handling the return management process with 3PL is easy if you identify how it works and manage your work effectively. Formulating the right policies also saves you a lot of hassle.
Do you want to find an efficient 3PL to effectively handle return management? Use 3PeeL as your matchmaker and find your perfect match today.
