Using lean six sigma theory to eliminate the waste of processing defects enables more efficient warehouse processes and reduces the need for non-value-added tasks.
Having a more streamlined method for dealing with returns enables specific problems to be identified and rectified. The same product type being returned had previously been unnoticed however a high frequency of the same product being categorised as faulty indicates a common fault. Establishing common faults enables a solution to be implemented. In this case a top heavy machine being damaged in transit was the major factor in the products return. Simply using a bespoke courier for specialist transport enables a reduction in returns of this type.
Quality issues are also highlighted using the new system, enabling better communication with suppliers and in turn further improving third party production and quality control processes.
Confusion over components is another area subject to increasing returned goods. Products with multiple packages to their consignment are prone to miss shipping or parts being lost in transit. Identifying the problem products leads to a more accurate labelling and shipping process being implemented.
The overall profitability of the company is increased and waste is reduced by the implementation of lean six sigma theory.