Material returns

Returns are just when a product of yours is not accepted by a consumer. The reason for returns could be several, one of them being the product not meeting customer expectations. It could be due to a product fault or a difference in specifications.

Delayed shipments may also get rejected as many end consumers may consider it as a lost opportunity. There are financial repercussions for a company due to returns. Companies often have products under warranty and may have to send back replacements.

The SCM professionals have to consider these factors and manage this process well. A good BI can, to a large extent, help the companies mitigate this risk and help track warranties. The SCM professionals should perform analysis on the reasons for returns and try to minimize the risk in future.

The consultant should get into the nitty-gritties of the process and help SCM to get deeper insights for better management of the returns.

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