Dealing with Vendor Returns can be a challenge. Any business that gets products from an outside Supplier will likely have to deal with Returns eventually, but without a strong process in place, plenty can go wrong – and that means leaving money on the table and hurting your company’s bottom line.
The potential difficulties can be numerous. Properly processing a Vendor Return requires multiple steps, and even some follow up, and because these multiple steps can span across departments and individuals within your organization, there’s high potential for a piece of the puzzle to slip through the cracks.
On your company’s end, you need to ensure that all products are returned (or the appropriate quantity in the event of a partial return), that those products are sent to the correct location, and that each step is properly documented along the way – including inventory updates, shipping information, and so on.
On the supplier’s end, the credits you’re owed need to go to the right department and have the same level of detailed documentation – but as many have learned from firsthand experience, Suppliers might not always do the best job of applying credits or creating the right documents. This can lead to multiple follow ups, corrections, and frustrating delays as you try to correct errors or track down why a Return remains in limbo or why credits have yet to be applied. While not all Vendors are guilty of these kinds of errors or lack of follow through, it happens often enough to be a common issue.
Even after a Vendor Return is fully processed and finalized (hopefully without too many hiccups), your organization should also be carefully tracking the relationship with the Supplier, the frequency of – and reasons for – returns, and any other data you have available. The point is to create a deeper understanding of what’s happening and why, and to be able to predict the financial implications of any future returns. Keeping a detailed track record of your Vendor relationships will also allow you to review your history with a bird’s eye view, and if necessary, determine if it’s time to end the relationship.
All of this, however, is much easier said than done.
You still have your daily operations to contend with, multiple people across departments that might not all be on the same page, and so many other moving parts that can make people lose sight of the importance of getting credits and properly tracking every stage of the Supplier Returns process.
…And that’s where Belmero comes in. Our Supplier Returns Managed Service takes all of these steps into account, and uses a highly refined system to make sure you’re getting all of your credits, that everything is tracked and documented, and works across the various departments of your organization to make sure everyone involved is taking the necessary steps for success.
Share this Post