Advancing Along the Returns Journey

Returns have taken center stage in the supply chain over the last few years, but it’s clear merchants and carriers still don’t know the best approach to optimizing them. For those managing returns the same way they did pre-pandemic, fixing this process may seem too complex or disruptive.

Sky-high inventories, unprecedented return rates, changing shopper behaviors and the need to operate more sustainably are converging. Now factor in supply chain issues, labor shortages, inflation and escalating gas prices and it’s easy to see why optimization may seem overwhelming.

While the ultimate goal may be an integrated, end-to-end returns solution, a modular approach still moves your organization along. New, pure-play e-commerce merchants can look at returns holistically because they don’t have to integrate legacy systems. They can even work returns into their go-to-market strategies.

Established merchants and carriers face a different set of challenges, but not every obstacle needs to be addressed at once. A crawl-walk-run approach is fine, provided there are solid milestones and a timeline in place. Without time-based milestones, scope creep will dilute your efforts and margins.

The first step is to truly understand your current position, which can be more difficult than it seems. You have the capability to process a return, but do you know the actual cost of a return? Are you factoring in the hard costs — like transportation and labor — as well as the soft costs, like inventory carrying costs?

Read this paper to learn the key building blocks every good return strategy is likely to include — building blocks that transform returns from a necessary evil to a substantial competitive advantage.