In this guide 6 sections
Log every return against its original dispatch line and lot, then inspect the goods and choose rework, replacement or credit, recording the cause as material, tooling or packing. Route the cause to the stage that made the fault, and close the claim only once its supervisor has written back on the same claim record.
Open the claim against the original dispatch
Returns arrive as boxes and phone calls. Start every claim from the invoice number and the dispatch line, because that single link carries the lot, the date and the quantity in one place.
Give each claim its own number. Capture who reported it, what they saw and how many pieces are involved, then attach the customer photos to the record on day one, before the box is opened.
Short step, big payoff. Skip it and guesswork follows.
- Invoice and dispatch line
- Lot or batch number
- Quantity claimed and quantity received back
- Customer’s description and photos
- Date reported and date goods arrived
Inspect the returned goods before deciding anything
Hold returns in a quarantine rack. Never mix them with saleable stock. Quality checks each piece against the drawing or specification, using the same gauges as final inspection, and marks it faulty, damaged in transit or fine.
Some returns are the customer’s error, such as a wrong size ordered, while others are yours, and a few belong to the courier who dropped the carton. The inspection note decides which. It protects you in any argument.
Weigh or count the goods on receipt. Gaps between the quantity claimed and the quantity received are common, so write each difference on the inspection note before anyone argues about it.
Choose rework, replacement or credit
Each outcome leaves a different paper trail. Rework issues a fresh work order tied to the claim, so labour, machine time and material are all counted against the fault rather than the next customer’s job. A replacement is a new dispatch. A credit note reverses the invoice.
Set a rule on who approves what. A customer service lead might approve credit up to a written limit, with larger notes going to the plant head and contract disputes to sales.
Scrap needs a decision too. Return it to the supplier, destroy it under a signed record, or sell it as seconds with a label that stops it reaching the same customer again.
- Rework order linked to the claim number
- Replacement dispatch with its own lot
- Credit note referencing the original invoice
- Scrap entry with the approver’s name
Send the cause back to the stage that made it
Claims that stop at the desk repeat. Tag the cause from a short list of raw material, machining, finishing, assembly, packing, labelling or transit, then route a note to the supervisor of that stage.
That supervisor replies with what changed. A worn die was replaced, a bore gauge was recalibrated, or a foam packing insert was added, and the reply stays attached to the same claim record.
Review causes every month. Three claims from one stage in a single month deserve a proper conversation between the supervisor and the plant head, not a footnote in the minutes.
Close the claim and watch the pattern
A claim closes when four things are true: the customer has their remedy, the stock is sorted, the stage has replied and the accounts entry is posted. A missing item keeps the claim open.
Keep an ageing view by claim number. Anything over two weeks old gets a chase from the customer service lead every Monday morning, along with a note to the stage supervisor whose reply is missing. No exceptions.
Pull the last five returns you handled. Count how many trace back to a lot today, then fix the gaps starting with the oldest claim that still has no stage reply.
Return and claim log sheet
The log gives every claim a row with these columns: claim number, invoice, lot, quantity claimed, quantity received, inspection result, outcome, cause stage, stage reply and closing date. A top block counts causes monthly.
Open a blank worksheet to printQuestions owners ask
Should returned goods go back into saleable stock?
Only after inspection says they are fine. Until then they sit in a held area with the claim number on the tag, so nobody ships a faulty piece by mistake. Pieces that pass go back through a normal stock receipt with the claim number noted, and pieces that fail go straight to rework or scrap.
Who should own the claim record?
The customer service lead owns the record and its closing, quality owns the inspection note, and the stage supervisor owns the cause reply. One name per task avoids long silences. Claims that belong to a shared inbox, with nobody named, tend to sit unanswered for weeks while the customer chases by phone.
How long should we keep claim records?
Hold them for the full warranty period of the product, and go longer when a customer contract or a quality standard asks for it. Read the contract wording. Keep the inspection note, the photos and the cause reply together with the claim, because those three answer most later questions about what happened.
Can a spreadsheet handle this?
For a handful of claims a month, yes. Once claims overlap with rework orders and credit notes, a system that links each one to its lot and its dispatch line saves hours of searching every month. Fix the routine before buying software.