Managing the reverse supply chain

For many companies, handling customer returns is a daunting challenge. Automated Distribution Systems has turned it into a best practice.

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 5/23/2006

Life is random. So are the customer returns received at most distribution centers, according to Bruce Mantz, executive vice president, Automated Distribution Systems (732-287-8900), a third party logistics provider to major retailers.

"The challenge with returns is that you never know what you're going to get," says Mantz. "Because of that randomness, it's difficult to automate the process."

That doesn't mean returns can't be turned into a best practice. For starters, ADS pairs floor personnel with experience sorting returns with new people. That way the experienced staff can guide the newcomers.

For another, Mantz found he could reduce the number of unauthorized returns by asking customers to print authorization numbers and the contents on the outside of the carton. "Something as simple as that really cuts down on non-authorized goods," says Mantz.

Next, ADS has broken the process down into repeatable steps:

• First, get it all in the door.
• Next, sort the product according to stock keeping unit, and by size when dealing with shoes.
• Third, determine whether the merchandise is salable and check that everything matches.
• Finally, repackage the merchandise for sale and then pack it for re-shipment according to customer specifications.

The most important practice, however, might be an emphasis on customer service. "We remind our people that they could end up buying that product in a store," says Mantz. "When they open up a box, they want to find the right thing in there."