Advanced Returns Management (ARM)
in SAP

Simple administration and handling of customer returns with SAP ARM

Your requirements

Overview and summary of customer returns
Functions for an efficient returns management
Controlling of returns refund

Our solution

Quality control
Collection of logistical follow-up-activities
Determination of refunds
Tracking of all receipts to returns business processes
Unvaluated returns stock

Your Benefits

Continuous and optimizied processes of returns management
Optimized and accelerated returns management
Overview of the returns process
Increase of process efficiency reduces total cost of ownership
Permanent monitoring and possibility of intervention in the process

The SERKEM solution in detail

As an advanced returns management solution in SAP, SAP Advanced Returns Management is used for managing customer returns and provides a range of enhanced features for returns processing.

In addition to a seamless returns processing workflow, the returns overview feature allows for continuous monitoring and intervention in the processes. An optimized and accelerated returns management is the result of SAP Advanced Returns Management.

At a glance

Basic Functions

Material inspection

Registration of inspection results for the material directly in the returns order: for returns order-based deliveries or for supplies-based on returns stock transport orders
Registration of inspection results for deliveries with reference to returns purchase orders

Advantages:

Easier planning of logistical follow-up activities
Higher transparency at the determination of returns refunds
Better traceability of decisions in the returns process
Analysis and evaluation of returns processes for reducing the returns volume

Defintion of logistical follow-up activities

Examples: assume immediately in free available stock, delivery to suppliers, acquisition in commission
Determination of final place of destination of a returned material
Registration of necessary details of the material in the returns order for follow-up activities
Usage of control transaction for data collection

Advantages:

Reduced effort for planning and execution of logistical follow-up activities
Analysis and evaluation of returns processes for future reduction of returns volume

Automatic creation of follow-up documents

Examples:

Returns stock transport order, returns purchase order, inbound and outbound delivery as well as goods movements

The consequence:

Faster processing and higher productivity- User have to interfere rarer in the processes.

Returns refund determination

More precise and transparent determination of returns refund through:

Information of the returns refund to customer: if and in which form
Determination of returns refund amount over returns refund code
Determination of returns refunds

Returns overview

Tracking of returns processes
Overview over all process steps, created follow-up documents and status information (settlement and returns refund)
Better customer service through easier information possibilities

Customer returns and supplier returns

Administration of customer returns and mapping of all returns scenarios in the SAP system like e.g. direct returns in the shop, returns which include a delivery in the storage with subsequent reverse handling in logistics and direct returns from customer to the suppliers. The returns refund takes place with credit memos or replacement material.

Supplier returns are connected with the return of products from one company location to the following, possible recipients: supplier returns for external suppliers and branch returns for other companies in the further process of the logistics chain.

All connected steps with the returns management are integrated:

Creation of returns orders
Entering of inspection results
Decision over logistical follow-up avtivities
Returns refund for customer returns through credit memos
Free subsequent delivery of replacement materials
Process monitoring
Connection of single steps with different user roles and authorizations
Automatically creation and tracking of all receipts for processing in logistics and finance

Extensions

Unvaluated returns stock

Especially for redirection processes (branch- and supplier returns) with the possibility of scrapping

Booking of goods receipt for customer returns in unvaluated stock: logistical follow-up activities are based on the unevaluated returns stock
Automatically goods movement for booking of returned material in the unevaluated stock at change of ownership from customer to company
Fulfillment of legal requirements and internal demands for the evaluation of returns stock
Automatically booking of goods movement for evaluation accelerates the processing of customer returns

Replacement material in customer return

Replacement material instead of credit memos for customer makes the fast delivery of replacement material to the customer possible:

Initiate the automatically generation of relevant free subsequent deliveries before receiving the reclamation: releasable in the returns order, in the material inspection in the storage or in the returns refund for customer returns
Booking of the relevant goods issue
Automatically creation of relevant documents

Replacement material in supplier return

Processing of replacement material deliveries from the supplier for returned material accelerates the appropriation and settlement of replacement material deliveries from the supplier:

Definition of received material
Automatically creation of purchase order and delivery for replacement material
Document creation with regard to the supplier returns process
Booking of good reception for delivery: system creates documents in the invoice control, which displays a credit memo with the value zero for returned material and an invoice with the value zero for replacement materials
Further logistical destinations for replacement materials can be specified

Reparation as logistical follow-up activity

Function for simplification and acceleration of the transfer from return to repair process:

Definition of a repair or workshop repair as logistical follow-up activity for returned material in the customer return process
Automatically creation of relevant repair order in the system
Possibility of automatically bookings of goods movements from return order stock in repair order stock
Possibility of automatically creation of a repair position in the repair order
Function simplifies and accelerates the transfer of return process to repair process: the system creates automatically the relevant follow-up documents

Additions for consisting return scenarios

In the return order: hold data of customer inspection, specify the next logistical follow-up activity, note that the returns refund was determined interim for the customer, determination of indication of returns refund key in customizing

In the material inspection: release of credit memo request or free subsequent delivery, take over the logistical follow-up action in indicated stock, indicate a target plant and target material beside target storage location and target stock type

Supplier return as logistical follow-up activity: extraction of supplier address from master data of customer

Hiding of not used areas: Accelerated registration of return order and material inspection

Returns in SAP EWM

In more and more industries an efficient returns management is required over the warehouse management system. As an important part of the processes in the supply chain, an efficient returns management can increase the customer satisfaction as well as the loyalty of the customers.

SAP EWM helps to fulfill the requirements for a good return management:

Full control over costs and returns
Quickness at processing of returns
Administrate the complexity of returns efficiently
Integrated Tracking
Central returns document flow

New functions with release EWM 7.02

The following functions were added with the release EWM 7.02 for the advanced returns management (ARM):

Initiation of return process in SAP ERP over ARM-specific returns order or returns stock transfer
Finding of new specific document types for inbound and outbound delivery of return processes in SAP EWM with new initiator codes
Usage of ERP functions for credit memos for the transfer from unevaluated customer stock in evaluated in own holdings
Implementation of a material inspection before goods receipt in the storage
Skipping the EWM inspection or implementation after goods receipt
Setting of follow-up activities in SAP EWM for processing in SAP ERP
Execution of follow-up activities warehousing and scrapping directly in SAP EWM

Return Material Authorization in SAP EWM

Additionally, for the trouble-free handling of customer returns in EWM in combination with SAP ERP, an approval process was implemented. Therefore, a return material authorization (RMA) is created in SAP ERP. This is based on a return requirement of the customer.

Characteristics RMA:

Marking of each return position with separate RMA number
Tracking possibility of return positions over all storage processes by means of the RMA number
Activation of RMA based quality control in SAP EWM
Initiation of follow-up activities in SAP EWM, e.g. goods scrapping or return shipment to the customer

Customer Benefits

Increase of process efficiency sinks total cost of ownership

Optimization of the whole returns management
Continuous support for the whole returns process
Standardized and clearly return processes
Support of customer returns (from known customers to a company location or an external supplier)
Support of supplier returns (returns from one company location to an external supplier in the further supply chain

Faster and more effective handling of returns

Automatically creation of follow-up documents for all functions
Better usability accelerates the creation of return orders
Higher customer service and increased customer satisfaction

Overview over the returns process

All at a glance through monitoring functionality (returns overview)
Administrate business processes more efficiently and more transparent to returns
Increase of efficiency and transparency
Improve customer service

Further advantages

Individual adaption and control of the return process
Mapping of different scenarios
Standard archiving objects for process tracking data supports an easy traceability of the processes
Supply through updates, patches and extension of functionality through SAP is permanently guaranteed
Additions for the returns process

Highlights

Because the customer return is a sales business process the returns order will be usually created with regard to the preceding customer order.

Customer-individual adaption and controlling of the returns process

Within the Advanced Returns Management in SAP ERP there is a series of possibilities for the customer-individual adaption and controlling of the returns process.

The customizing is clear and has a lot of possibilities for the customer-specific design of the returns process, whether through catalogue entries for material inspection, definition of returns reasons, determination of goods movements for follow-up activities, determination of proposal values and so on.

Possible Scenarios

The fundamental returns process with usage of SAP ARM can be individually controlled and influenced in his course. The process can take many characteristics and properties. The following scenarios are thinkable and practicable:

Goods receipt in storage through return delivery or personal delivery of the article
Returns refund control, e.g. credit memo or shipment of free replacement material
Returns management of drop shipments (direct delivery supplier – customer)
Logistical follow-up activities for definition of goods movements (further proceeding), for example:
- Goods should merge in freely available stock
- Goods should merge in reject
- Goods should be delivered back to supplier
- In the same step a credit memo request can be released
- Follow-up activities can be already indicated in return order