How can you use a WMS system to manage returns and reverse logistics?

Returns and reverse logistics are inevitable aspects of warehouse operations, but they can also be costly, time-consuming, and complex. How can you use a WMS system to manage them more efficiently and effectively? A WMS system is a software application that helps you track, control, and optimize the movement and storage of goods within your warehouse. In this article, we will explore how a WMS system can help you handle returns and reverse logistics in six ways.

1 Automate return authorization

A WMS system can automate the process of authorizing returns from customers or suppliers, based on predefined criteria and rules. This can reduce manual errors, speed up the approval process, and ensure compliance with your return policy. A WMS system can also generate return labels, instructions, and documents for the customer or supplier, and send them via email or other channels.

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Syed Khaja Safiuddin Hussani

Sales Manager Project Logistics 3PL | Key Accounts, Sales Targets
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A warehouse management system (WMS) can help you manage your returns and reverse logistics more efficiently and effectively. Here are some ways to use a WMS system to manage returns and reverse logistics

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2 Streamline receiving and inspection

A WMS system can streamline the receiving and inspection of returned goods, by providing you with real-time visibility and guidance. You can use barcode scanners, RFID tags, or other devices to scan and identify the returned items, and verify their quantity, quality, and condition. A WMS system can also direct you to the best location to store or process the returned goods, based on their status, priority, and demand.

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Glen Wilkinson (WMS) 📦

Empowering businesses with one of the most modern, pure-cloud WMS platforms: Scalable, SaaS, Future-Ready ☁️
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As a solution provider (WMS) we have some really great features for reverse logistics. Our highly customizable workflow builder manages returns using prompts and questions to the operator to capture data and trigger a predefined path of events. One of our clients has created an A,B,C,D categorization that inspects the return and depending on the catergory it will navigate through the steps.

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Sean Delport

Warehouse manager for BPX Electro Mechanical Co. Ltd
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Glen has the right answer in my opinion. It's not about manipulating your WMS, but having a WMS in place that can cope with it. My experience with reverse logistics is limited, but when it comes to returns, I believe the best cure is prevention. Obviously that's easier said than done. But when you have a WMS that can offer, and cope with, your needs and the customers, your job is halfway done. And when developing a WMS, you should have someone in the mix who has extensive experience in the field to offer the best input for what the needs and processes are that will ensure the system gives the user all the right options, steps, and flexibility. A rigid and limited system developed without experienced input will fail you every time.

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3 Optimize disposition and recovery

A WMS system can optimize the disposition and recovery of returned goods, by helping you decide the best course of action for each item. You can use a WMS system to evaluate the profitability, feasibility, and sustainability of various options, such as reselling, repairing, refurbishing, recycling, or disposing of the returned goods. A WMS system can also help you execute the chosen option, by providing you with the necessary resources, workflows, and documentation.

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4 Enhance inventory management

A WMS system can enhance your inventory management, by enabling you to update and adjust your inventory levels and records based on the returns and reverse logistics. You can use a WMS system to track and monitor the status and location of the returned goods, and avoid overstocking, understocking, or misplacing them. A WMS system can also help you maintain accurate and consistent inventory data across your warehouse and other systems, such as your ERP or CRM.

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5 Improve customer service

A WMS system can improve your customer service, by allowing you to provide faster, smoother, and more transparent returns and reverse logistics. You can use a WMS system to communicate with your customers or suppliers throughout the return process, and provide them with updates, confirmations, and feedback. A WMS system can also help you resolve any issues or disputes that may arise, by giving you access to relevant information and evidence.

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6 Analyze performance and trends

A WMS system can help you analyze your performance and trends in returns and reverse logistics, by generating and displaying various reports and metrics. You can use a WMS system to measure and evaluate the efficiency, effectiveness, and profitability of your return processes, and identify any gaps, problems, or opportunities for improvement. A WMS system can also help you forecast and plan for future returns and reverse logistics, by providing you with insights and trends based on historical and current data.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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🎯 Raja Kumar

Warehouse & Logistics Expert | Author | MDI Gurgaon l Serial Star Performer | 4 times MD awarded l Under 40 Supply Chain Super Achiever l Ex NCC Cadet l Toastmaster | 26,000+ Family Members
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A Warehouse Management System (WMS) can be used to manage returns and reverse logistics by streamlining the process and ensuring efficient handling of returned products. Here's how you can use a WMS for this purpose: 1. Receiving Returns: When a return is initiated, the WMS can capture the return request, generate an RMA (Return Merchandise Authorization) number, and schedule the return receipt. 2. Inventory Management: The WMS can update inventory levels in real-time, making returned items available for resale or identifying products that need inspection, refurbishment, or disposal. 3. Routing and Sorting: The WMS can determine the optimal route for returned items within the warehouse, ensuring efficient sorting and disposition.

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How can you use a WMS system to manage returns and reverse logistics?

1

2

3

4

5

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7

1 Automate return authorization

2 Streamline receiving and inspection

3 Optimize disposition and recovery

4 Enhance inventory management

5 Improve customer service

6 Analyze performance and trends

7 Here’s what else to consider

Warehouse Operations

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How can you use a WMS system to manage returns and reverse logistics?

1

2

3

4

5

6

7

1 Automate return authorization

2 Streamline receiving and inspection

3 Optimize disposition and recovery

4 Enhance inventory management

5 Improve customer service

6 Analyze performance and trends

7 Here’s what else to consider

Warehouse Operations

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