Returns management includes a customer service process 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.

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

Authorization:

The process in which the customer requests and receives authorization for a product return (known as the Return Material Authorization or RMA).

Settlement:

The process in which the product return is settled with the customer through various service actions like a refund, exchange, repair, or reward

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

Logistics:

The process in which products are returned from the customer to the designated location where returns processing takes place.

Processing:

The process in which product returns are received, inspected, and dispositioned through various actions like restock, repair, and recycling.