Returns Management: Service and Business Market
There is hardly a corporation that functions without returns. As a matter of fact, this aspect is essential for the business market. The fundamental purpose of the paper is to describe the returns management process in the service and business market.
In order to get deeper involved in the issue, the question regarding the definition of the term should be taken into consideration. It is worth noting that returns management is considered to be a process that is commonly related to the returns of the commodity and reverse logistics (May, 2010). The goods should be managed by the organizations. In the case of the process functions appropriately, it provides a company with an opportunity to reduce the number of goods that were returned for some reason. Effective returns management is beneficial for the business, however, it presents some challenges and difficult in the process of implementation (Grant, 2012).
In case a company has a high index of returned products, it can raise the prices for goods in order to cover the expenses. The effective system of returns management and reverse logistics positively affects the business as new ways of recycling the goods can be developed. The flexible return policy will not only contribute to the establishment of good relationships with the customers, however, will also be beneficial for the financial aspect.
Returns are viewed by the vast majority of people as a negative phenomenon that can make the economy of the company vulnerable. The returns management process in the business market should involve the following factors that impact the company, namely:
- When a product is returned, it means that the enterprise spends additional costs for transportation;
- The returned good takes up space;
- The relationships with the customer are influenced negatively (Scott, Lundgren, & Thompson, 2011).
The cycle of the returns management process is the following, namely:
- Plan;
- Source;
- Make;
- Deliver (Scott, Lundgren, & Thompson, 2011).
The service market is impacted by the returns management as well. Every time the product is returned, it means that the service failed to perform appropriately. The client was not satisfied, and it was a reason for return. In order to increase the loyalty of the customers towards the corporation, the service market should work with the buyer, provide him with support, and eliminate the conflict situations. Education of the staff is essential to reduce the risk of the client dissatisfaction.
The business should be flexible in the return policy as losing a client can be a risk. The business and the service market need to face transformation in terms of returns management process. The current market demands changes as the preferences of the customers are not the same as they were a couple of years ago. Centralization of returned products, maximization of sustainability, and control are vital components that will change the returns management process in the business and service sector (May, 2010).
In conclusion, it should be pointed out that in the modern economic condition, it seems significantly important to implement an effective system of the reverse logistics and returns management process. The returned products can influence the company in a negative way, and that is, should be dealt appropriately. Returns management process can transform the company and bring it to a new level of development.
It can become a key factor in the innovation of the segment and contribute to the establishment of the client-centered approach. When a commodity is returned, it means that not only a business sector but a service one failed to perform appropriately.
References
Grant, D. (2012). Logistics management. Harlow, UK: Pearson Education.
May, G. (2010). Strategic planning: Fundamentals for small business. New York, NY: Business Expert Press.
Scott, C., Lundgren, H., & Thompson, P. (2011). Guide to supply chain management. New York, NY: Springer.