Vendor Facing Return Management - Effective monitoring of Supplier Relationship and Returns

In the distribution section, a customer returns policy is usually backed up with the vendor returns process. Effective Management of vendor returns for replacement, repair or credit is paramount to minimize the overall cost to an organization of customer returns and to ensure fast resolution of customer product problems.

In the manufacturing sector, vendor relationship is equally important with the target of the vendor acting as a work centre of the producing plant. Early visibility of component problems can reduce scrap costs and manufacturing down-time significantly.

The Defacto Vendor Returns module offers an administration console fully integrated with Sage Purchase Order processing and Stock Control and The Defacto Customer Returns, Quality Management and Enhanced POP modules.

Progressing is achieved by stepping through the following stages of Consignment Creation through to Return and Replacement including:

• Vendor Return Notes
• Purchase History Search
• Customer Returns Cross-Reference
• Customer Returns Consolidation
• Consignment Management - Create / Despatch / Inventory
• Return Tracking Vendor - Auto Replacement PO Generation
• Vendor Chasing / Progressing
• Sage Line 500 POP / Stock Integration
• Defacto QN and Vendor Rating
• Credits / Write-Offs / Direct Returns
• Replacement Stock Costing
• Replacements Issues to Customer

The typical flow of information through the Vendor Returns module takes the following path:

• A Vendor RMA Request is raised, supported by warranty information and confirmation or rejection recorded.
• Vendor Return products for the same supplier are then built in to a consolidated consignment.
  The consignment is then despatched and the items are removed from inventory.
• Replacement items of same or alternative or repaired product are received, marked against the Vendor Return and booked into inventory.
• Credits for goods which are not replaced appear on the Credit Notes due log.
• Reporting includes Vendor Returns Status, Chasing, Replacements Due In, Credits Due, Cost of Return by Item and Organization Overall Cost of Return.
• The generation of Vendor Returns documentation and Consignment Notes is all automatically controlled within authorization limits.
• With a complete history of the problem available from the Customer Returns module, the negotiation of the Vendor Return is greatly simplified.

At each stage actions are controlled by user profiles set-up during installation. Likewise problem and Fault types, Resolution Actions and Status codes can all be defined during set-up.

The module can be combined with the Customer Returns module from Defacto to provide a distribution returns management system which rides on the underlying Sage Inventory and Order Processing framework.

The Defacto Quality Management module provides the means by which an organization can analyze and manage its performance across its range of activities.

It offers a framework upon which a quality management program can be implemented enabling an organization to capture vital data relating to quality events such as pass/fail test results, rejects and failures and success rates. The facilities available in the module can help an organization meet certification requirements (ISO 9001, ISO 14001, ISO/TS 16949, ISO/IEC 17025, AS9100, and/or TL-9000 or other system standards and promote organization-wide improvement).   Information can be gathered from the Warehouse, Goods Inwards, Shop Floor, Production and Laboratory and also from external Sub-Contractors. Full analysis of each quality event can be recorded and speed of entry is ensured through the optional use of templates. Each Quality Event can automatically trigger a Corrective Action to initiate remedial action. This Corrective Action can then be tracked through user-defined process steps to completion and implementation.

In this way, continual improvement can be achieved by managing quality issues from the point of initially recording the problem right through the process of implementing a remedy and on to final sign-off of a satisfactory resolution. The entire process can be monitored form a management console display key events and measures in "dash board" format.

Sage 1000 MME Dashboard integration is available as well as solutions utilizing industry standard Microsoft Sharepoint and Reporting Services foundations.

By providing key analysis and feedback on processes and events, the module enables managers, leaders and their teams to recognize use and improve their management systems and processes for adding value and preventing loss faster than their competitors. Key Performance Indicators for delivery against planned date and failures per batch are more easily visualized using dash board technology.

The goods inwards and production receipts monitoring features within the module offer full sampling plans with the capability of automating the generation of sample taking instructions and bar-code labels. Samples can then be inspected and tested and outcomes recorded within the module. An organization can define product specific inspection cycles, samples sizes, pack sampling strategies, acceptable quality levels (AQLs) and then track inspection results for production and receipts recording product quality on an internal or vendor per batch basis.

If required, the sampling system fully integrates with the Defacto Testing module which extends the features and support for managing testing requirement from stringent laboratory environments through to computerized software test plans. Test results can be entered manually, bar-coded or collected electronically and are recorded against test plans which may be generated from standard test plans. With this fully integrated solution, test or inspection passes can automatically release Sage inventory batches, set user defined batch status (Version 6.0 Sage) and create Certificates of Assurance carrying the test result information. Likewise, test or inspection failures can generate re-tests and remedial actions and initiate corrective actions starting with a Reject Note.

Reject Notes from within the Quality Management module can integrate with the Defacto Vendor Returns module to automatically generate Return Notes and provide a direct feedback and analysis of purchase goods inwards rejects and vendor performance measures.   The module also contains a Standards sub-system which handles the introduction and on-going management of product, component and raw materials specifications with customers and suppliers. The entire life-cycle of each specification document can be managed and the review, acceptance or rejection process is fully audited at each stage.

The open database architecture means that enquires and reports can be easily created and customized to build enquiries, web portals, dashboards and management consoles. The module includes examples such as Fault Type Analysis and Results Trends, Week-on-Week Quality Charts and Period Open/Closed Logs. For Sage 1000, MME Dashboards are available for Quality Management and Vendor Returns.