Product Returns: What is the Issue?

There is generally a negative spin on the topic of product returns management. Are you receiving the information you want when processing your product returns? Is there a solution to minimizing the percentage of returned product? The difficulties in absorbing all the cost, time and labor into managing customer returns can be overwhelming for any business. Maybe you need to take a fresh look at managing your product returns.

Personally, I believe that too much money is being wasted because of companies not utilizing their resources when handling returns. Millions of dollars of product are scrapped on a yearly basis on product that may not have been defective at all. In a study conducted by Accenture, more than 68% of returned consumer electronics products are characterized as “No Trouble Found.” For the average large consumer electronics company, lowering those NTF by 1% can result in an annual savings of $21 million.

Product returns have a substantial negative effect on the profit margin your company will deliver this year. Yet, the number one reason product returns have such a negative financial impact on consumer electronics retailers, appliance manufacturers, automotive and a vast array of other businesses is because most companies fail to manage product returns as a business. Most retailers and manufacturers react to product returns after they have occurred and do not have distinct processes for how to handle them. This causes too much inefficiency and will end up costing your company a lot of that profit margin originally earned from the sale.

At CoreCentric Solutions, we can help you keep those hard earned dollars. Our team of Engineers performs quality detailed analysis on product returns to give you reports on exactly what failed and how to fix the issue. We design standardized documentation in alignment with our ISO 9001/2008 certification to examine each product return we would receive from your company. Each and every return is inspected, tested and report the same way each and every time to ensure quality and consistency. This can result in saving product, saving money and finding a solution to product returns. For more information, please visit our website at www.corecentricsolutions.com