Parts Return Management - How to Overcome Common Challenges?

Did you know more than 70% of companies fail to evaluate the loss of revenue caused by product returns? In fact, many businesses don’t realize the significance of automation in parts return management. For OEMs, effective return management is the need of the hour as it streamlines the process for dealers and their internal operation teams.

Managing the return of spare parts comes with a plethora of challenges, especially when it is already under warranty. From verifying the malfunction of the part to prompting the return and arranging a carrier service, a lot happens in this hierarchy of return request replacement, planning, scheduling, and dispatch.

In this blog, we will channel some of the most prominent challenges associated with the entire process of parts return management. In addition to this, we will also discuss some pragmatic ways to deal with these challenges using custom software solutions:

Challenges of Parts Return Management

Complex Flow of Parts Returns

After clearing a warranty claim and delivering the new part in its place, what happens to the part that was returned to the dealer by the end customer? What went wrong with that specific spare part and how will OEMs collect it from their dealers to test the quality of the product? 

From verifying the part to inspecting it for its malfunction, and fixing it, the flow of parts returns can become complex and affect the operational productivity.

Manual Tasks of Return Management

Returning spare parts, which is also described as a reverse supply chain, is a multi-level cycle itself. In general, OEMs have different departments to deal with returns and part quality assessment. While other operations involve a direct collaboration between OEMs and dealers, spare parts return may widen this collaboration by bringing return centers and carriers into the equation.

OEMs deal with a number of parts returns on a daily basis and each return requires a set of information which is often submitted manually. Such manual tasks are prone to errors and therefore need to be automated.

Disruption in Warehouse Operations

Amid a series of operations taking place in a warehouse every day, taking care of parts replacement and return can be an imposition. Even if there’s a dedicated team to take care of parts returns, it will somehow interject with warehouse operations in some ways. Such significant interruptions may affect the overall production and eventually become an unavoidable obstacle for OEMs.

How to Overcome these Challenges with An Automated Return Management System?

OEMs can overcome these challenges with parts return management software and align the process into a more methodical and transparent arrangement. Let’s dive deep into the usability of an automated return management system for OEMs:

1. Dealers can choose a suitable and cost-effective carrier service that can take the part to be returned to a nearby service center. Return management software is designed to take the pressure of returning parts safely off of dealers.

2. Tracking of shipment becomes simpler with return management software as the dealer and other stakeholders get to track in real time the status of the return.

3. Dedicated setup for inspectors comes as a primary functionality of such software solutions, enabling parts quality inspectors to monitor each return request on the portal comprehensively.

4. Domestic and international shipment processes become easier with a warranty parts return management system. Once a request is submitted by dealers, they can explore a list of domestic and global carrier services to make a more feasible selection.

5. Bulk data upload is a functionality uniquely put together to eliminate any remote possibility of human errors in the return management cycle.

A transparent return process infused with accuracy and efficiency is the aftermath of an return management tool. Simply put, OEMs can use such software to allocate resources effectively and streamline product improvements. 

How to Choose the Best Parts Return Management Software?

If you are an OEM looking to optimize the return management process, you should look for software that can manage the complete network of return centers and carriers with optimal precision. You need to thoroughly review the features of an return management system along with its capabilities that can effectively align with your digital presence. 

Before finalizing software solutions, you can ask your service provider to book a demo of the product and analyze the ways these options can benefit the return management process.

Brwose Related Blogs:

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Experienced technology consultant specializing in IT strategy, digital transformation, and innovation. Driving business growth through tech solutions.

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