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The Morales Group Contract Management Services (CMS) team responds to the immediate demands of our many customers with projects that require additional people, project expertise, and space to complete. Morales Group CMS manages all aspects of an outsourced project, works closely with the client for on-site projects, and consistently tracks any inventory we manage at our facility.
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With the holiday retail period here we are all hoping that sales are strong this year. But we also know that the inevitable “New Year’s Return Hangover” will arrive as retail merchandisers began the process of sending unwanted, damaged and overstocked items back to the manufacturers.
What Will Be On The Truck?
Managing the returns process is always a challenge. Why? Because no one schedules returns so you have no idea really, what will be on the truck until you unload it. This leads to an unorganized, unpredictable, and painful disruption to your normal operations typically for a short period of time.
Unpredictable, Disruptive and Costly
Retailers and wholesalers expect some level of returns following the peak Holiday season and at other scheduled times throughout the year based on returns policies. But the level of these returns is difficult to determine in advance and hard to completely plan for. For those unfortunate to be hit with a recall, there is often little forewarning, and can occur any time during the year.
Managing the returns process involves dealing with a number of variables that cannot be easily predicted whether you are handling returns or recalled items. What we do know is that returns of any type disrupt our normal business operations and cost money.
1. Plan Ahead - Knowing what to do when a truck shows up at your dock with pallets of returned goods will go a long way in minimizing the costs of handling each return or recall. Of course working to a predetermined schedule is ideal, but recalls and spot returns don’t always fall into a preordained time frame.
2. Build Flexibility Into Your Process - Because of the extreme unpredictability of returns, it seems obvious that your return procedures need to be able to flex with volume and rate of returned product as well as with the nature of the returned items. When returns are received there are five possible dispositions for that product.
Building flexible processes around warehouse space, labor needs, inspection/sorting procedures, system input/output requirements, and management oversight can lead to a variety of potential options. Recognizing these options and having a basic plan for implementation you will ultimately save a great deal of time and money.
3. Utilize Third Party Resources - Based on the scale and repetitive nature of returns, utilizing a third party sources to manage your returns process either at your location or at an offsite warehouse, may alleviate many of the problems associated with managing standard returns or product recalls. Morales Group Contract Management Services is experienced in managing a variety of returns and have a flexible managed workforce model that offers commitment and performance accountability while providing a managed workforce that can flex throughout your operation. We take on the cost burden of handling returns or recalls and alleviate the unpredictability associated with those headaches.
For more on how the Morales Group CMS can be a resource when handling your reverse logistics/returns process, contact Seth Morales at smorales@moralesgroup.net.
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