Returns management includes both a customer service and an operations process. Combining these processes creates the RETURN-TO-SETTLEMENT (RTS) process. Let’s explain the Return-to-Settlement process by breaking it down into two main processes and four underlying processes.

Service
The service part of the Return-to-Settlement process comprises two main processes:

  1. Returns Authorization: The process in which the customer requests and receives authorization for a product return (known as the Return Material Authorization or RMA).
  2. Returns Settlement: The process in which the product return is settled with the customer through various service actions like a refund, exchange, repair or reward

Operations
The operations part of the Return-to-Settlement process comprises two main processes:

  1. Reverse Logistics: The process in which products are returned from the customer to the designated location where returns processing takes place.
  2. Returns Processing: The process in which product returns are received, inspected and dispositioned through various actions like restock, repair or recycling.
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