Leveraging Automation and Artificial Intelligence for Smarter Returns Management
Returns management has traditionally presented a challenge for retailers and consumer goods manufacturers around the world, with the average rate of returns staying steady at about 16.5% each year. With rising consumer expectations, streamlining the returns process is becoming increasingly important to meet customer needs.
Fortunately, automation and artificial intelligence (AI) have made it easier than ever to manage inventory efficiently and reduce costly returns. By leveraging these powerful tools, companies can improve their sustainability efforts, lower overall returns costs, and create an optimal experience for customers who are returning items.
Here, we'll explore how retail and manufacturing organizations can utilize automation and AI to revolutionize their approach to returns management.
AI Provides Returns Efficiency, Insights, and Rewards for Customers
AI has revolutionized how businesses operate and has become an integral part of supply chain management. For example, supply chain leaders are already using AI to forecast demand, optimize inventory levels, and track production performance.
Regarding returns management, AI can be used to improve tracking capabilities, speed up processing times, reduce the costs of manual interventions, and provide insights about return patterns, even for specific customers. AI algorithms not only help identify why customers are returning products but also analyze buying patterns and customer behavior to help the company reward loyal employees with better returns policies and even reduce the likelihood of returns altogether.
According to David Speights, chief data scientist at Appriss Retail, "AI can recommend dynamic policies and create behavior-based returns recommendations that give high-value customers exciting perks like longer return periods or can provide targeted incentives that can recapture revenue and modify shopper behavior, such as if a retailer wants a consumer to make a return in-store rather than ship it back."
Additionally, AI can optimize return routing, allowing products to be processed faster and with greater accuracy. AI has proved to be a game-changer for returns management, enhancing the customer experience and ensuring better supply chain management.
Automation Can Optimize Returns Processes
The returns process in any business can be a complicated and often frustrating experience for both the customers and the staff members involved. Traditionally, returns have required a significant amount of manual work, as team members must inspect returned products, process requests from customers, and determine the final destination of returned products.
With the help of automation technology, this process can become much more streamlined and efficient. By utilizing automated systems for tasks such as item tracking, condition assessment, and refund processing, businesses can significantly reduce the time and effort required to handle returns.
Not only does this help to improve customer satisfaction by providing faster and more accurate refunds, but it can also lead to significant cost savings for businesses by reducing labor and processing expenses. Overall, automation is a powerful tool that can optimize the returns process and create a smoother, more seamless experience for all parties involved.
Technology Can Make Returns More Sustainable
As businesses strive to become more environmentally conscious, building a sustainable supply chain has become a top priority. Managing returns can be a major challenge for companies, but implementing a smart returns management system can help create a more sustainable and efficient supply chain.
By optimizing the returns process, companies can reduce waste, save on transportation costs, and improve customer satisfaction. Through the use of technology and data analysis, businesses can track returns, identify patterns, and determine the best course of action for each item.
Building a sustainable supply chain with smart returns management not only benefits the environment but can also lead to increased profits in the long run. As we've learned, AI and automation can be combined to streamline returns management, reduce overall returns, and deliver better outcomes for returned products that reclaim revenue.
After all, any revenue that can be reclaimed from a returned product also means a lower likelihood that that product will end up in a landfill.
Build a Better Returns Management System
Returns management is a crucial part of the retail and consumer goods industries. By leveraging automation and artificial intelligence, retailers and consumer goods manufacturers can reduce overall returns, improve sustainability, and lower the cost of returns management.
The key challenges for companies will be determining which AI and automation solutions to implement, securing approval for new technology roll-outs, and securing investments to improve the returns process.
If you'd like to learn more about how to use AI and automation for returns management, don’t miss Consumer Returns 2023. It’s happening from October 2nd to October 3rd at the Austin Marriott Downtown in Austin, Texas.
Download the agenda and register for the event today.