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Tips and advices about managed ERP cloud solutions and services

  • 08.11.2016

    How important is Return Material Authorization for your business?

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    A return materials authorization(RMA), return merchandise authorization (RMA), return authorization (RA) or return goods authorization (RGA) is a part of the process of returning a product in order to receive a refund, replacement, or repair during the product’s warranty period.

    The purchaser of the product must contact the manufacturer (or distributor or retailer) to obtain authorization to return the product. The resulting RMA or RGA number must be displayed on or included in the returned product’s packaging; no returns are accepted without this number.

    The issuance of an RMA/RGA is a key gatekeeping moment in the reverse logistics cycle, providing the vendor with a final opportunity to diagnose and correct the customer’s problem with the product (such as improper installation or configuration) before the customer permanently relinquishes ownership of the product to the manufacturer, commonly referred to as a return. As returns are costly for the vendor and inconvenient for the customer, any return that can be prevented benefits both parties.

    RMA labels
    In many instances, return shipping labels are provided by the transportation provider or mail carrier. RMA labels will often include the issued RMA number.

    Return management
    Returned merchandise requires management after the return. The product has a second life cycle after the return including an inspection stage where you can determine if the produce is in new condition or if it requires to be “refurbished”. Additionally, a service call can be triggered to track the products that are being refurbished.

    An important aspect of RMA management is learning from RMA trends to prevent further returns. RMAs may be minimized in a number of ways.

    Returns are sometimes minimized by reducing transaction errors prior to the merchandise leaving the seller. Providing additional information to consumers also reduces returns.

    Return to vendor
    Return to vendor (RTV) refers to the process where goods are returned to the original vendor. In many cases the RTV was originally returned to the seller by the end consumer. While RTV transactions usually occur between the seller and the vendor, in some instances the end consumer will return the product directly to the vendor, sidestepping the seller.

    Source: Wikipedia

    Now you know what RMA really means, you can find solutions how to deal with it on our website.

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