Returns Program Payback

[mati]

I'd like to convince my company that there is a payback if we invested in some type of returns program, but they don’t see it yet.

Any suggestions on how to go about it?

[Warren]

Most companies tell us the payback that gets C-level attention is in 2 areas: improved customer service, and better utilization of returned assets. Customer service gets better when CSR's have more accurate and current information about the status of a return, associated replacements, and resulting credits so they can inform the customer. Also, better Reverse Logistics systems allow CSR's to process returns faster. Utilization of returned assets can mean re-directing returned parts to secondary markets or breaking down the returned units into components that are re-useable. Some companies have even grown significant new product lines and markets out of returned goods that were previously being scrapped.

Try searching on Cisco and Returns or Reverse Logistics to see a company who is aggressively optimizing returns and see if that helps your execs see the benefits.

[RL_Advisor]

The key is to convince C-Level Executives of the strategic value of a returns program. You must be able to identify the costs and financial benefits of an effective return managment program. Ultimately, access to data on the disposition of returned products and related return processing costs are crucial to the ability to track, manage, and forecast returns and protecting income/revenue for your company. Basically, you need to show the C-suite what it costs the company by not effectively managing returns in terms of lost productivity, lost revenue, added labor costs, brand integrity,etc. compared to the financial benefits that can maintained from automating and streamlining Returns and finding new sources of revenue from returned merchandise. As mentioned previously, a good Returns Management System will automate and streamline operations, reduce costs, improve productivity and help the company make optimal decisions, that generate income, regarding the disposition of returned goods. The goal is to show how a good returns program can represent a new income stream for you company.