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According to RLEC, Returns Management is that part of supply chain management that includes returns, reverse logistics, gatekeeping, and avoidance. Within Returns Management there is Gatekeeping. Gatekeeping means making decisions to limit the number of items that are allowed into the reverse flow. Successful gatekeeping allows firms to control and reduce the rate of returns without damaging customer service. Gatekeeping eliminates the cost associated with returning products that should have not been returned or the cost of products that have been returned to the inappropriate destination. The point of entry into the reverse flow is the best point to evade unnecessary cost and management of materials by screening unwarranted returned merchandise.
In 2004 the Reverse Logistics accounted for $ 58.34 Billion in the U.S. alone. Costs associated with the reverse logistics process can add up. Appropriately managing the cost of returns can be most affective by properly managing the gatekeeping process. As a single return can cost approximately 3.7% of the sales price (not including packaging and repair). By outsourcing to the appropriate Third Part Service Party (3PSP), that has established basic policies and procedure these cost can be kept down.
Please Click here to read Gatekeeping within Returns Management PDF
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