Redesigning a Returns Process to Improve Visibility and Operational Control

Client
Scaling VC-Backed Gym Equipment Supplier · D2C and B2B

Returns handling station or ecommerce returns processing environment with organised workflow and product inspection.

The Situation

The business had no documented returns process. Warehouse space was being consumed by unmanaged returns, reporting lacked consistency, and internal operational activity was distorting the true picture of customer returns.

Teams were working hard operationally, but leadership had no reliable visibility into what was being returned, why it was happening or how the process should operate.


What We Did

  • Conducted a line-by-line analysis of returns activity over a full trading month

  • Built two operational workflows covering customer-facing returns handling and warehouse receipt processing

  • Introduced structured reason-code and adjustment-code frameworks

  • Redesigned operational handling for marketing samples, ex-demo stock and internal returns activity


Results

The project identified major reporting and process weaknesses, including:

  • 37% of returns carrying no reason code

  • 22% categorised as “not suitable — customer”

  • 9% linked to incorrect-item issues driven by SKU management failures

  • 18% of returns activity being generated internally through marketing samples

The business moved from an undocumented process to a live operational workflow with structured reporting and clearer accountability.


Beyond the Numbers

The redesign transformed returns from a reactive operational burden into a measurable process.

For the first time, leadership could connect returns data back to supplier compliance, operational process quality and marketing effectiveness — turning returns into a genuine operational feedback loop rather than simply a warehouse problem.

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Building a Spare Parts and Service Operating Model for a Scaling D2C Brand

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Resetting Inbound Planning and Warehouse Capacity Before a Second-Site Investment