How does speed in returns processing influence value recovery? 

If your business regularly receives product returns, you’ll want to limit inefficiencies within your process, particularly around peak seasons. Failing to streamline will impact your opportunities for maximum value recovery and instead lose money.

Ingram Micro Lifecycle manage returns for numerous global customers in the consumer technology sector, including insurers, retailers, and OEMs. We alleviate the associated pressures by delivering timely returns processing, recovering products for reuse or resale.

In this article, you’ll understand how speed impacts potential value recovery from product returns and how to improve your processes.

The need for speed

There are more product returns entering the supply chain now more than ever. Around 1 in 3 online purchases become returns with consumer electronics one of the top six categories being returned.

Speed directly impacts the potential for value recovery from these products so it’s important to remove barriers and inefficiencies within returns management. The slower your handling, the higher risk the product faces from depreciation.

Other factors, including desirability of the product, also impacts value. The longer your product sits in storage, the less interest there’ll be as potential buyers go to your competitors, or the market moves on.

Obsolescence

The technology market is incredibly fast-moving. Products are quickly replaced and upgraded by newer models. Naturally, products with greater functionality are more sought-after than those with diminishing capabilities.

Product returns should be processed quickly to capitalize on their attractiveness in the market. Delays risk losing buyer interest.

Seasonality

Consider the ‘new year, new you’ mantra and the number of people that start new diet and exercise regimes in January. Electronics like walkpads, treadmills, and fitness watches become more sought-after then compared to other times of the year.

Missing the prime window for peak desirability of your product range means you won’t be able to recover maximum value. Demand for the product will drive what price you can resell for.

Errors

The amount of investment into the recovery process will impact the overall cost return when the product is sold. Aim to reduce mistakes and errors that cause repetition of recovery steps. Repeating steps means you’re investing more resources into doing something that could’ve been successful the first time around. This increases the cost of processing the return and lowers your overall value return when the product sells.

Processing too quickly can lead to mistakes and errors. Introduce automation where possible to reduce human error and boost consistencies. Automations ensure all products are processed and recovered to the same standards.

Product faults

Using root cause analysis to identify trends in product faults can reduce future returns by correcting the product issue proactively. This reduces the costs associated with the whole returns program as you process less products associated with the identified fault. With less faults to correct during repair and refurbishment, turnaround time is increased.

Factors that slow down returns processing

Areas within your returns management process that can cause delays and extend the time it takes to get your product on the market for secondary sale, include:

• Lack of appropriately trained staff – this leads to incorrect product inspections and grading, causing errors further along the recovery process.
• Poor visibility of returns inventory – no real time data means you can’t accurately plan for repairs and refurbishment. You’re invisible to the volume of returns awaiting processing or what’s causing delays.
• Errors in parts forecasting – not leaving enough lead time to get in parts required to complete repair and refurbishment of returns makes you vulnerable to delays.
• Manual labour – this can be more timely, especially when dealing with intricate, repetitive tasks. Automation boosts outputs while improving the working conditions of labour.
• Unclear or untested processes – new systems need stringent stress testing, including when introducing new products into the returns process. You have to consider all eventualities and contingencies as part of the New Product Introduction (NPI).
• Machinery breaking down or staff illness – failing to look after your resources and having appropriate risk management plans reduces the volume of returns being processed.
• Logistical difficulties – work with couriers you trust to ensure you receive the returns as quickly as possible. Make sure the return instructions are clear to the product owner to avoid unnecessary delays.
• Poor communication – this includes internal and external. All stakeholders should be on the same page and understand their roles to manage expectations and outputs.

Boost your speed and value recovery today

Various factors inside and outside your control can impact the potential cost recovery of a product return. Boosting speed, without compromising the quality and standards of recovery, ensures maximum value potential.

Ingram Micro Lifecycle have been managing returns for customers for over 20 years, optimizing the returns process to minimise waste and maximize potential. Our mission is to enable a circular economy and boost recovery yields for onwards life.

Get in touch with us today for more information on our expert returns processes and how we can maximize the value recovery of your returns.