Many happy returns: If you have to handle returns, you can minimize the impact on your warehouse

By John Hill, principal, ESYNC -- Modern Materials Handling, 5/23/2006

Few businesses today are insulated from the task of returns processing. Depending upon the industry, the impact can be substantial. For example, a major Northeast mail order house processes an average of 7,000 returns per day, while 20 to 25 staff members are dedicated to working on returns at a music and book distribution facility.

What can be done? Not very much if returns acceptance is an integral part of your firm's marketing strategy. However, if you must handle returns, the warehouse must be configured to permit streamlined material flow after quick, efficient paperwork processing. Some tips to consider:

• Address returns as part of the warehouse layout and design process.
• Provide adequate space for inbound staging, processing and outbound dispositioning.
• Returns are a housekeeping challenge--locate them out of the mainstream if possible.
• Consider automation to facilitate the flow. For example, sort automatically to identify and count for credit, to move to scrap or restock location, etc.
• Don’t forget about non-merchandise returns.
• Formalize your returns handling operation. Assign personnel to the team, full- or part-time, depending upon the volume. Give them the tools and hold them responsible for performance.
• Rapid disposition decision-making requires the most experienced people. Assign less experienced personnel to ancillary tasks.

If you follow those guidelines, you can turn returns into many happy returns.