Total cost to perform the process "manage returns; manage reverse logistics" per sales order fulfilled

This measure calculates the total cost to perform the process "manage returns; manage reverse logistics" per sales order fulfilled. The total cost is the sum of outsourced, overhead, personnel, system, and other costs. The process "manage returns; manage reverse logistics" describes the work of physical handling, information processing, and disposition of the product and packaging returned by the buyer to the seller or an intermediary. Returns management includes return approval, transportation coordination, advance communication, product tracking, receipt, disposition of the return (reuse of the material, waste disposal, refurbish, repair, re-sale, etc.) and processing warranty claims (crediting the customer account, material substitution, replacement, etc.). This Cost Effectiveness measure is intended to help companies understand all cost expenditures related to the process " manage returns; manage reverse logistics."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
107620
Total Sample Size:
774 All Companies
Performers:
25th
-
Median
-
75th
-
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are dollars.

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Total cost to perform the process "manage returns; manage reverse logistics" / Number of sales orders fulfilled

Key Terms

There are no key terms associated with this measure.
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Measure Scope

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Cross Industry (6.1.1)

  • 4.5.5.1 - Authorize and process returns (10364) - Approving and carrying forward the requests by the customers to return the product. This is part of the process of returning a product in order to receive a refund, replacement, or repair during the product's warranty period.
  • 4.5.5.2 - Perform reverse logistics (10365) - Moving products from their typical final destination to the origin or manufacturing destination for the purposes remanufacturing or refurbishment. Implement a transportation system to ensure that the products are returned back to their originating position safely and in tact.
  • 4.5.5.3 - Perform salvage activities (10366) - Executing activities for reinstating the returned products. Present the customer with additional incentives of compensation in case of any defective products delivery or any discrepancy in the product specifications in order to save the order from being permanently returned.
  • 4.5.5.4 - Manage and process warranty claims (10367) - Managing and administering any claims on the warranty of products. Handle and approve the customer claims for repair or replacement of, or compensation for non-performance or under-performance of an item, as provided for in the warranty document.
  • 4.5.5.5 - Manage repair/refurbishment and return to customer/stock (14195) - Administering the reinstatement of the returned product in order to return them back to customers. Repair or remanufacture the defective or ineffective products returned by the customer. Process the delivery of the repaired or remanufactured products back to the customer.