The improved return flow is visible on the bottom line

The company's main challenge was that they had no common general approach to the return goods processes. It meant that:

• There were no coordinated clear guidelines and process descriptions for the returned goods process, among other things, the IT system was not used in the same way at the two warehouses
• The lead time was unsatisfactory
• There was a lack of reporting possibilities
• Information about the inventory levels was inaccurate
• There was a lack of traceability in the return flow

The list of challenges resulted in three specific business goals, which the project set out to fulfil:

1. to create a common approach to the handling of returned goods from wholesalers
2. to establish common, well-documented guidelines for returned goods, in the form of internal processes and requirements for information from wholesalers
3. to reduce the lead time on returned goods

Work was done according to different processes at the two return goods warehouses in the USA and EMEA. The work was done in the same IT system, but the differences in the physical processes were reflected in their use of the IT system: for example, there was no uniform use of the system codes describing the reason for the return of the goods. Differences in the work processes may be necessary, for example due to physical conditions, but to ensure overview, traceability and reporting, the digital registrations in the IT system must be made in the same way and for the same purpose. Thus, the cost can be reduced based on the data available.

The design of the solution was therefore based on a series of clarifying meetings between the two locations. Here, employees exchanged experiences, reviewed their local work processes step by step, sparred with each other about 'best practice' and discussed both detailed workflows and more general processes.

The comprehensive work gave rise to a series of eye-opening experiences for the employees at the two storage locations. The outcome of the work was a joint process that meets the demands from both warehouses and ensures that many local differences are conserved where it makes sense.

At the same time, the development of the process and the IT solution focused on enabling extensive use of mobile devices to minimize the employees' need for access to a computer to register and follow up on the returned goods.

Alongside the development of the supporting IT solution of the process, the organization initiated a major change management initiative, which ensured that the affected employees understand the meaning of the changes and received the necessary training in the use of both system and process.

The work done in the workshops uncovering and defining the optimal processes and the ensuing consensus on a common approach and process has created efficiency and ease in the return flow and both management and employees have access to a full overview of the flows. The workflows are much more transparent and simpler for the employees and an expanded use of mobile devices has made the work much more flexible and efficient and it provides a better opportunity to collect valuable data in the daily work.

In short, the company now has general guidelines for returned goods from wholesalers, stakeholder management and precise communication throughout the return flow process - to the great delight of both employees and wholesalers. The business value is easy to spot: the return processes are now more efficient, lead time is reduced, traceability is excellent, reporting provides value, and at the same time, cooperation with the wholesalers is improved and identical in the USA and EMEA.