Returns Management is very vital

Boxes of returns wind up on warehouse shelves taking up valuable space and returning nothing to the supply chain. The churning nature of today’s market has made returns management a significant challenge especially with all the new legal disposition requirements.
During a physical inventory or warehouse cleanup, the entire heap of returned merchandise may be thrown out while management vows to process returned merchandise in a timely manner in the future.
We have found that the root of many organizations' problems with returns lies in the lack of a specific set of procedures related to these transactions. In this article we'd like to present a three-step process that you might be able to utilize in designing an effective returns program.
Determine What Can Be Returned. Most organizations limit returns to goods that are currently stocked. Any special order or discontinued products usually are not eligible for return. Customers should be told what items cannot be returned as they order or buy the products. This information should also be noted on all packing slips and invoices. Only designated members of management can override this policy. These decisions should be based on the specific customer's contributions to your company's profitability.
Process Returns like Any Other Stock Receipts. Returned material should not be dumped and forgotten. If possible, issues return material authorizations (RMA's) to customers. These documents list the items (and quantities of those items) that you have authorized to be returned by the customer. A copy of the RMA should accompany the physical return of the material. The RMA can serve as a packing slip to be utilized by your receiving people.
Calculate What It Costs to Process a Return. How much time does it take a receiving person to check in a line item on a material return? How much time does it take to return the material to its normal storage location? How much time does it take the clerical person to issue the credit memo? You can divide an employee's hourly wage (plus benefits) by the average number of line items he or she can process or put away in an hour.
Handling returns is not a pleasant task. But it can be kept under control by establishing some basic policies and procedures. By minimizing the time and effort necessary to perform this task, we can devote more effort to those activities that produce profits. You can consult a returns management or reverse logistics company.