Nearly every consumer has encountered a “30 day return policy” and many of us have used it. But, have you ever wondered what happens to the product that was returned? The store can’t put it back on the shelf and sell it again as new and what if it has a couple of scratches? The answer: refurbishment.
Refurbishment is the process of restoring a product to like-new condition. Depending on the source of the product to refurbished, the refurbishment process can range from minor to complex and generally involves cleaning, repairing and/or repackaging the item.
In the case of a return from a return policy allowing returns for any reason, the product may be basically unused, with no defects. On the other hand, leased equipment used for a couple of years and then returned may require a bit more to restore it for sale.
The refurbisher is skilled in working with the product, meets high standards, and, where applicable, subjects the refurbished product to rigorous testing. The result is many times referred to as a “certified refurbished product.”
Refurbishment: A BIG market with a lot of inventory
According to the Harvard Business Review article, “Many Happy (Product) Returns,” ( Stock, Speh and Shear, 2002), the value of the products that U.S. consumers return to the nation’s retailers each year exceeds $100 billion.
Citing the widespread use of eCommerce, the increased use of electronics, and an increase of self-service in stores, returns only continue to increase. Reasons for the returns are varied, with returns resulting from shipping damage, a defect, a trade-in, the end of a lease, or simply that they buyer changed their mind and didn’t want the purchase.
And, while many people associate refurbishment with electronics or computers, returns and the resulting refurbishments span many industries from industrial equipment, to medical devices, to office furniture and includes both the business to consumer and business to business markets.
The result: A lot of inventory to refurbished.
Refurbishment manufacturing software to manage the return process, the inventory & your business
The return may be handled by the retailer, who then in turn returns it to the distributor, who then in turn returns it to the manufacturer, or in some cases, the manufacturer may be the retailer.
Regardless, a process and software to manage the process efficiently is a necessity for a profitable refurbishment business.
Acctivate’s manufacturing software delivers a complete solution for refurbishing manufacturers with…
Acctivate software for refurbishment
Acctivate delivers a complete solution for refurbishing manufacturing with…
- Advanced bill of materials
- Multiple units of measure
- Lot and serial number tracking
- Landed cost
- Workflow management
- Kitting & Assemblies
- Demand analysis tools
Get started today!
Learn more about Acctivate & how it can improve operations across your entire business. Call us at 817-870-1311 or try Acctivate for free.