Returned Goods Processing
The returns area of a warehouse is commonly full of a mix of open cartons from many different SKU’s that need to be identified and sorted according to disposition. Through this sorting process, credits must also be issued and return-to vendor tracking created. The combination of process complexity and low priority of reverse logistics typically means little attention is given to improving the returns process. As a result, warehouse managers tend to treat it as a necessary evil.
Best Practices Process
Despite the fact that returns operations are inherently problematic and do not yield to simple automation, some companies have gained competitive advantage by applying some of the industry’s best practices. We will analyze a best practice process from two aspects: business processes and data collection and flow.