Manufacturers are making their return policies more restrictive.
Common changes include No Credit for:
- Manufacturer original container with prescription label attached
- Items not in original container
- Items returned more than 12 months past expiration date
As a result, credit is not issued at current cost. After applying manufacturer policies, the typical expected return value ranges only from 60% to 85% of total returns. In order to ensure return credit is issued in a complete and timely manner, it is critical for the retailer to have reliable and efficient reverse logistics processes.
During our reverse logistics review process, we will complete a detailed review of the current process and procedures used for the following return types:
- Outdated product returned to the 3rd party logistics provider
- Returns to wholesalers
- Product recalls
We will identify process gaps and provide recommendations for improvement to:
- Improve return product flow and reduce in-transit inventory
- Provide visibility and understanding of return and credit information and key metrics
- Eliminate unnecessary costs
- Improve the credit yield by reducing the rate of non-returnable returns
Comments are closed.