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Returns Reduction Consulting Omnichannel Operations Optimization Organization Management Re-platforming Project Execution Mergers and Acquisitions Applications Expertise Insights Company About In the News Affiliations Community Impact Events Careers Contact
Newmine
  • Returns Reduction
  • Consulting
    • Omnichannel Operations Optimization
    • Organization Management
    • Re-platforming
    • Project Execution
    • Mergers and Acquisitions
    • Applications Expertise
  • Insights
  • Company
    • About
    • In the News
    • Affiliations
    • Community Impact
    • Events
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Resolution 2020: Fix Returns | Supply Chain Management Review

27
Jan
2020

Resolution 2020: Fix Returns

Supply Chain Management Review (SCMR) is an industry-leading publication dedicated to the pursuit of sharing academic and practitioner knowledge of supply chain best practices. As part of their January 2020 Issue dedicated to reverse logistics, SCMR interviewed Newmine on the benefits of reducing returns.

According to SCMR, “there’s real margin and customer satisfaction sitting in those piles of returns over in the far corner of the distribution center. Now is the time to create effective processes to gain control of returns. By mid-year you’ll be glad you did…”

“Returns don’t just have to be the cost of doing business,” says Navjit Bhasin, founder and CEO of Newmine. “Better returns management can add to margins,” he continues.

The question is how to do that most effectively. There is no single answer for all.
…
Bhasin says a basic returns strategy should be quite straightforward—reduce the number of returns in the first place. He
identifies four key benefits from returns reduction:
1) every $1 million return reduction adds $500,000 to the bottom line;
2) improved margins due to fewer markdowns;
3) cost savings in labor, shipping and DC space; and
4) increased brand loyalty as a direct result of a better buying experience.

So the real challenge to executing the strategy is to figure out why returns happened in the first place. For instance, Newmine has identified five top reasons for apparel returns. Without regard for order, they are: wrong item shipped; item displayed inaccurately online; damaged product; quality; and size/fit.

Such information can go a long way to reducing returns because they are all actionable items prior to a sale of any item, says Bhasin.

Subscribe to SCMR to read the full article.

 

 

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Jenny Gorlin
Marketing Manager at Newmine
Jenny is Newmine's Marketing Manager. Having recently completed her MSc. in Marketing at Trinity College, Dublin, Jenny brings a global perspective of consumer behavior and customer decision journeys. She's passionate about how omnichannel retail is being used today to create powerful customer experiences.
Latest posts by Jenny Gorlin (see all)
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  • PacSun Eddie Bauer CEO, Mike Relich Further Enhances Newmine Advisory Board - December 8, 2020
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