Reverse Logistics - DC Returns

As competitive pressures force retailers to implement more liberal return policies, return volumes have exploded. Today, it is not uncommon to find retailers receiving back as much as one-third of the total items they ship.

Returns processing can be an extremely expensive activity, consuming space, labor, dock doors, and other resources while tying up potentially valuable inventory. While the challenges are different from the order fulfillment side of the warehouse, the goals are essentially the same. You want the process to be fast, accurate and cost effective. Key components of an integrated

Reverse Logistics operations should include:

Barcoded RMA Labels

carton with RFID label

Timely, accurate Information is paramount to an efficient reverse logistics process. Barcoded RMA labels are key to getting product off the dock and processed quickly.

Streamlined Receiving / Triage Process

The primary goals of the triage process are speed and accuracy. A robust information system is leveraged to capture information for multiple departments (sales, accounting, operations,…) disposition product, and to set up downstream processing.

Automated Sortation

automated returns sortation

The information gathered during the triage process is used to sort product by disposition. Secondary sorts may be used to separate product into logical groupings (I.e. putaway zone, vendor, …). In many cases it makes sense to automate this process.

Integrated Repack Stations

Integrated repack stations

Repack or rework workstations should be integrated into the reverse logistics process. It is important to minimize the pools of inventory that can accumulate in these operations.

System Directed Re-stocking

The returns processing software should be tightly integrated with the Warehouse Management System to facilitate seamless transitioning of saleable product back into inventory.

Streamlined Return To Vendor Process

It is critical that product to be returned to the manufacturer is processed in a timely manner so appropriate credit may be received. If it is necessary to accumulate product prior to shipment, this process should be system directed and occupy space out of the way of on-going operations.

Intelligent Scrap Process

Product with no value or with value less than the cost to process should be identified and scrapped as early in the process as possible.

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