Large amount of returns inventory held in the warehouse.
Unidentified or unauthorized returns.
Lengthy processing cycle times.
Unknown total cost of the returns process.
Customers have lost confidence in the repair activity.
Lack of information about the reverse logistics process can result in the process being out of control. As the saying goes “if you aren’t measuring it, you can’t manage it”.
Cause and Effect
Poor data collection can lead to uncertainty about return causes. By improving the return process, it is possible to decreases costs. It is important to be able to see defective product by problem code in an information system making it possible to track return issues.