PRLog (Press Release) – Sep. 12, 2011 – Every supplier, either wholesale or retail, has to deal with returns and defective products at some time or another. It’s all a part of doing business, but usually results in a financial loss, and a quandary as to how to dispose of the returns. If a company were to institute a returns management program for dealing with returns, there is a possibility to recoup some of the financial loss.

As a rule, returned products come back through customer service and represent a loss for the company, when it could be a hidden source of revenue.  Actually 80% of returned merchandized can be repackaged and sold, some returned to the manufacturer under warranty.  “Others can be undergo a test and repair process where they are refurbished, repaired, or remanufactured, either within the store itself or through a third party.”  It’s therefore essential to have a program in place to handle all returns, with policies and training set up.

A business will minimize its loss from products returned, and increase its profits, once it has an efficient returns policy in place. And many businesses also tend to outsource other services as part of their reverse logistics process such as electronics repair, depot services in order to focus on their core business, reduce costs and maximize profitability.

Most suppliers, either wholesale or retail, deal with returns and defective products, usually resulting in a financial loss. With an effective and efficient returns management process, this can be reversed.