CHAPTER 10 – MANAGING PRODUCT RETURN AND REVERSE SUPPLY CHAINS Flashcards
A well-managed reverse supply chain can ___ and ____
increase customer loyalty and grow sales revenues
some of the costs involved in this “free” return transaction:
-Shipping to customer
-Return shipping from customer
-Inventory carrying costs from the time the product is shipped until it’s restocked
-Receiving processing
-Performing quality inspection
-Processing customer refunds
-Repackaging
-Restocking
Many businesses insist on giving their customers permission to return a product by issuing a ____
return material authorization (RMA)
an agreement from the company that it will accept the product when it’s returned.
return material authorization (RMA)
The ___ makes it easier for the company to process returns when they are received.
RMA number
A store that has a ___ encourages customers to buy more and makes them loyal to a brand
liberal refund policy
A ___ has the opposite effect, making customers reluctant to commit to a purchase.
strict refund policy
– occurs when a customer isn’t sure how much she’ll need, so she buys a lot and returns whatever was left over.
Overordering
Return Scenarios:
(3)
Changed mind
Gift return
Excess return
Before accepting the return of an used product, you need to consider issues that can occur including:
(3)
Minor wear and tear
Damage or tampering
Substitution
scratches or other light damage on the packaging or the product
Minor wear and tear
Some products lose all their value after their packaging is opened. Medicine is a great example. __ or__ can occur with any product, including electronics and computers.
Damage or tampering
a customer returns the wrong product, either by accident or on purpose
Substitution
Retailers sometimes allow customers to return used products as a way to ___
build brand loyalty
In most cases, used products can’t easily be sold, so these returns are commonly:
-resold at a deep discount, without warranty
-auctioned off as salvage
-thrown away.
Supply chains begin with ___and end with ____ — ideally, in a way that doesn’t harm the planet.
raw materials from the Earth ,used products being returned to the Earth
– supply chains that circle back on themselves
– you recycle all the components when the product reaches the end of its usable life.
Closed-loop supply chains
– a part is designed in such a way that it can be rebuilt and reused over and over.
Remanufacturing
used part that’s being returned for remanufacturing
core
Customers may send back products that they never bought from you in the first place, or you may not be able to identify what the product is, where it came from, or where it belongs.
Handling Unauthorized Returns and Fraudulent Products
needs to authenticate the products coming back from your customers to make sure that the products are what they’re supposed to be
Refunds-processing department
– Unsuspecting customers sometimes end up purchasing counterfeit products by accident, especially online, and then try to return them to a local store when the products don’t work properly
Fraudulent returns
– a major problem for some products; it costs your company money because fake products take revenue away, and the ____ goods are often low-quality, which damages your brand.
counterfeiting, counterfeit
often make sense for products that have a long life. They can be great ways to make more money and to make customers’ lives simpler.
Trade-Ins
reduce the purchase price of your product, so they can increase your sales
Trade-in credits
