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Jason Krohn
ServiceNow Employee
ServiceNow Employee

Return Material Authorization

return merchandise authorization (RMA), is  the process of returning a product to receive a refund, replacement, or repair during the product's lifecycle.

Return material authorization

The issuance of an RMA is a key transaction in the reverse logistic cycle, providing the vendor with a final opportunity to diagnose and correct the customer's problem (such as improper installation, configuration and/or troubleshooting practices) before the customer relinquishes custody of the product to the manufacturer, commonly referred to as a return.

Return management

Returned material requires management after the return. The product has a second life cycle after the return.

An important aspect of RMA management is learning from RMA trends to prevent further returns. Depending on what the rules are, the manufacturer may repair & return, or send the customer an advance replacement. RMAs may be minimized in a number of ways.  Providing the customer with access to a  knowledge base, collaboration with a community and checklists via a rich portal may prevent RMAs by detecting problems and remedying prior to processing a return(s).

Automating the return process sometimes minimizing the transaction errors prior to the material leaving the customer. Providing access to tools and information the customer may also reduce or eliminate the need for a return all together.

Return to vendor

Return to vendor (RTV) is the process where goods are returned to the original vendor instead of the manufacturer's own repair depot. In many cases the RTV is returned to the vendor by the end consumer. While RTV transactions usually occur between the seller and the vendor, in some instances the end customer returns the product directly to the vendor, sidestepping the manufacturer.

ServiceNow RMA Use Case

Business Challenges:

  • No access for customer to easily submit a RMA
  • Lack of visibility into installed base/asset management by the customer
  • Difficulty in identifying and managing asset structures (parent/child) relationships
  • Zero customer visibility in identifying warranty status of assets
  • Complexity in directing RMAs to appropriate repair depots and/or Return to Vendor (RTV) base on product
  • Limited capabilities by the manufacturer to manage onsite consigned inventory at a customer location
  • Poor visibility in tracking inbound RMA from receipt to in progress to shipping while at a repair depot

Solution Details:

  • Customer portal for RMA creation (record producer)
  • Ability to select a parent asset and multiple child assets (subassemblies) when creating a RMA
  • Providing for a 'multi line' RMA - the ability to select multiple assets under a single RMA (case type)
  • RMA shipper/tracker produced to direct the returns to the  appropriate repair depot and/or vendor (RTV) based on product type
  • Inbound repair depot receipts notating 'partially received' or 'received full'
  • Outbound repair depot shipment notating 'partially shipped' or 'shipped in full'
  • Analytics to provide No Problem Found % (NPF), Mean Time to Repair (MTTR), Turn Around Time (TAT)
 
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