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Logistics Glossary

Returns Management: Treating Returns as a Logistics Process

Returns management (reverse logistics) covers all the processes involved in sending goods back from the consignee to the consignor or manufacturer. In the B2B sector it concerns incorrect deliveries, quality defects, goods for repair and empty containers. Efficient returns management cuts costs and raises customer satisfaction.

Last updated · NexCargo GmbH

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B2B returns: the typical triggers

Quality defects or damage on delivery, incorrect deliveries (wrong product, wrong quantity), missed delivery deadlines on time-bound orders, manufacturer recalls, the return of empty pallets and transport containers, and items sent in for repair or service.

Structuring the returns process

Efficient returns management follows clear steps: registering the return with a return number (RMA – return merchandise authorisation), collection from or delivery by the consignee, quality inspection on arrival, a decision (refurbish, resell, dispose of, credit) and documentation and posting in the ERP system.

Cost structure and optimisation

Returns cost on average 2–3 times the original dispatch. The cost drivers: collection, inspection, refurbishment and storage. The levers for improvement: clear returns policies, self-service returns registration, prompt refunds to retain customers and optimised refurbishment processes for resale.

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