Introduction to Returns Management
Three global trends, direct-to-customer commerce, the subscription economy, and the circular economy all lead to product returns. Companies that sell products need to be prepared for product returns. On this page we explain the Why, How, and What about returns management. For more in-depth material you can also take this returns management course.
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Returns management is important
- Customers have multiple reasons to return
- The reverse supply chain delivers stakeholders value
The supply chain should transform
- Companies need return cycles in their supply chain
- The reverse supply chain needs a business process
Is needed to make this transition
- Implement a returns management process
Returns management is important
The customer journey continues after the delivery
Customers have multiple reasons to return while using a product. When returning a product customers ask for service. The service journey offers new opportunities for interaction with the customer.
The reverse supply chain offers many opportunities
Returns can be a burden but are an opportunity if managed well. The Reverse Supply Chain delivers value in 5 different areas.
The supply chain should transform
The supply chain needs to be circular
Companies need return cycles in their supply chain to support product returns in different phases while the customer is using the product.
The reverse supply chain needs a business process
Return-to-Settlement is a new business process and includes a customer part and an operational part. It completes the suite of business processes for the Supply Chain.
Is needed to make this transition
Implement a returns management process
The Return-to-Settlement process includes 4 processes to manage customer returns. Returns Disposition recovers the value of returned products in existing or new value chains.
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12Return wants to contribute to a better understanding of the reverse supply chain and returns management.