Supply chain is an end-to-end logistics operation, which is usually outsourced to external agencies. In spite of the growing number of supply chain consulting companies, challenges such as lack of visibility, reduced control over the process and general management issues continue to overshadow their operations.
When choosing an external provider to take over the supply chain segment, we should assess the value gain that can be derived by collaborating with them. In many real-life cases, some products are returned from field, due to some error in packing or up gradation, making it a Herculean task to manage their change implementation and re-usage.
The returned boxes or baggage's add to existing storage costs because of which there is an impact on return on investment (ROI) for the supplier. Returns management as it is called today, is definitely a bigger challenge compared to the normal supply chain management activities.
The ability to deal with the returns process in a logical and efficient manner is an important criterion to be considered when choosing a supply chain solutions provider. The provider must be able to offer services that can refurbish the products in minimal time and get them back into the field with all necessary changes made/implemented. Some of the common returns management activities that need to be addressed are as follows.
1. De-trash and destruction of returned materials (CDs packaging materials, etc.)
2. Date code based warranty assessment
3. Test diagnostics and repair
4. Software and/or firmware upgrades
5. Warehousing and Distribution
6. Legally compliant disposal (i.e. WEEE and SB2050)
7. Warranty Returns
8. Lease Returns
9. Test and debug software
10. Repackaging
11. Disposal (remarketing, recycling)
12. Web Based Inquiry and Reporting
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