The Returns Management Process

The International Journal of Logistics Management

Returns management is the supply chain management process by which activities associated with returns, reverse logistics, gatekeeping, and avoidance are managed within the firm and across key members of the supply chain. The correct implementation of this process enables management not only to manage the reverse product flow efficiently, but to identify opportunities to reduce unwanted returns and to control reusable assets such as containers. In this paper, we describe how the returns management process can be implemented within a firm and across the supply chain. The process is described in terms of its sub-processes and associated activities, and the interfaces with corporate functions, other supply chain management processes and other firms. Examples of successful implementation are provided.

Returns management is the supply chain management process b

activities associated with returns, rev

erse logistics, gatekeeping, and av

managed within the firm and across key members of the supply chain.

implementation of this process enables management not only to manage the

, but to identify opportunities to reduce unwanted

returns and to control reusable assets such as containers. In this c

the returns management process is implemented.

described in terms of its sub-processes and activities, and the interfaces with

ate functions, other supply chain management processes and other firms.

Examples of successful implementation are pro

he management of returns is important for man

retail customer returns for general merc

handise are estimated to be approximately

At this rate, returns for the top 30 U.S. non-grocery

retailers for 2006 were approximately $67 billion. Return rates can be even higher

or example, one catalog apparel retailer has experienced

return rates of up to 40 percent. Logistics costs associated with managing returns

ve been estimated at four percent of a firm

would represent about $52 billion to the U.S. economy

ates the need for management attention to the returns process.

Dale S. Rogers, Douglas M. Lambert, Keely L. Croxton

his chapter is based on Dale S. Rogers, Douglas M. Lambert, K

A: Reverse Logistics Executive Council, 1999.

ibben-Lembke, Kasia Banasiak, Karl Brokmann, and

Proceedings of the 2001 Council of Logistics Management

Oak Brook, IL: Council of Logistics Management, 2001, p. 1.

…It involves complex returns management process. Returns management is defined as a set of activities associated with returns, planning the reverse logistics issues, and avoidance that are managed within the firm and across key members of the supply chain (

). In e-retailing business, product returns can be categorized as commercial returns, product recalls, warranty returns, manufacturing returns, service returns and end-of-use and end-of life returns (de Brito and Dekker, 2002)….

Improving reverse logistics performance in e-retailing: a consumers perspective

…No-fault returns account for the significant portion of returned products that are perfectly good as described by Blumberg (2004) . This refers to functional products returned due to consumers failing to understand how to operate them properly (

) or simply because of buyers remorse . On the other hand, quality returns refer to products returned due to performance issues that may require some type of repair or process- ing….

A Policy Development Model for Reducing Bullwhips in Hybrid Production-Distribution Systems

, activities such as gate keeping, re-manufacturing, retrieving, elusion, reverse logistics, warranty, disposal, and other green activities are classified as product return and recovery management. Practitioners and academia have increased their interest in the method of managing product returns in an ecological and proficient way (Srivastava and Srivastava, 2006)….

Barriers to Product Return Management in Automotive Manufacturing Firms in Malaysia

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