Goods coming back.
WHY IT MATTERS
Returns consume handling, transport and administration, and they are frequently unmeasured.
WHAT CAUSES RETURNS
Wrong goods sent Damaged in transit Defective Customer changed their mind Over-ordered Expired or unsold stock, where taken back
WHAT TO ESTABLISH
The cause of each return.
WHY
Most returns indicate a fixable problem upstream.
WHAT TO MEASURE
Returns as a proportion of despatches, by cause.
WHAT TO ADDRESS
The largest causes.
WHAT TO ESTABLISH ABOUT POLICY
What is accepted, within what period, and in what condition.
WHY IN WRITING
Undefined return policies produce disputes and abuse.
WHAT TO ESTABLISH ABOUT COSTS
Who bears return transport, in each circumstance.
WHAT TO REQUIRE
Authorisation before return.
WHY
Unannounced returns arrive without identification and cannot be processed.
WHAT TO RECORD ON RECEIPT
What was returned, its condition and the reason.
WHAT TO DECIDE
Whether it can be resold, repaired, returned to supplier, or must be scrapped.
WHY PROMPTLY
Returned goods held undecided occupy space and lose value.
WHAT TO ESTABLISH
That returns are processed promptly.
WHAT TO DO ABOUT SUPPLIER RETURNS
Establish the right to return defective material and exercise it.
WHY
Defective material absorbed rather than returned is a direct loss.
WHAT TO TRACK
Credits due from suppliers Credits actually received
WHY
Credits agreed and never received are common.
WHAT TO ESTABLISH ABOUT DISPOSAL
What happens to goods that cannot be sold.
