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Advanced Returns Management-2

Advanced Returns Management (SAP ARM) provides a standardized solution for managing returns processes across the entire supply chain. It offers comprehensive functionality for returns from customers to suppliers. SAP ARM includes features like returns orders, inspection of returned materials, planning of logistical follow-up, and end-to-end monitoring. It supports returns scenarios for customers, suppliers, branches, and factories. SAP ARM helps accelerate returns processing while increasing transparency and management of warranty costs.

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Imtiaz Khan
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153 views

Advanced Returns Management-2

Advanced Returns Management (SAP ARM) provides a standardized solution for managing returns processes across the entire supply chain. It offers comprehensive functionality for returns from customers to suppliers. SAP ARM includes features like returns orders, inspection of returned materials, planning of logistical follow-up, and end-to-end monitoring. It supports returns scenarios for customers, suppliers, branches, and factories. SAP ARM helps accelerate returns processing while increasing transparency and management of warranty costs.

Uploaded by

Imtiaz Khan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Advanced Returns Management

(SAP ARM) enables consistent


processes
Advanced Returns Management (SAP ARM) enables
consistent processes
Vienna, 08.10.2018

Monitoring the entire supply chain for returns from the end customer to the supplier
Challenges of the returns process
 Both consumers and B2B customers are annoyed about products being defective, about the
installed process etc. and of waiting on the refund or repair
 In many industries ordering or delivering more than required followed by a return is or has
become common practice
 The returns process comprises a lot of variants which makes it difficult to implement the
process in an ERP system
 In the context of a global supply chain, a high number of stakeholders is involved in the
returns process, e.g. customers, distributors, delivering plants and external vendors
 Customer returns are expensive – for every company
Appropriate SAP functionalities for the returns process

In the past, various SAP modules, in particular SD (Sales & Distribution) and MM (Materials
Management), offered a variety of functions for returns processing. However, the
functionalities and data structures as a whole did not provide a complete picture, as important
functionalities and connections were missing. Insofar, the implementation of an integrated
returns process, especially in the context of a global supply chain, required considerable add-
on programming.

SAP recognized the need for action and, with Advanced Returns Management (SAP ARM),
provided comprehensive functionalities for the returns process as standard software.
Appropriate cockpits and flexible process flow control ensure that the returns process can be
monitored end-to-end, from the customer to the supplier. In addition a wide range of process
variants can be mapped.
.
.

Business scenarios supported by SAP ARM


 Customer returns
 Supplier returns
 Branch returns
 Factory returns
 Integrated end-to-end process for returns, starting at the end customer and leading through a
multi-stage supply chain to the manufacturing plant or supplier
 Mapping of business models of life cycle management, such as parts cycles of spare or wear
parts, for example in the area of tool management
.
Need additional information?

Key features of SAP ARM


 Returns order (SAP ARM)
 Material inspection
 Logistical follow-up planning
 Automatic document creation
 End-to-End Process Monitoring
.

Some highlights of the customer returns process


 Returns Order – Trigger the customer returns process in SAP ERP
 Returns Delivery – Transport article from customer to a company‘s location
 Article Inspection – Verify the status of the returned articles as the basis for further logistical
steps and the financial settlement with the customer
 Logistical Follow-Up – Move the returned articles to the final destination
 Customer Refund – Determine the refund amount that the customer is to receive for returned
articles
 Billing – Payout the refund to the customer using credit memos
 Returns Overview – Monitor the customer returns process
Important ARM features
 Convenient user interface
 Cockpits for monitoring the returns process
 Handling of a large number of process variants – All major returns scenarios are being
supported
 Versatile process control options
 Uniform document flow
 Integration into complaints management
 Integration with Quality Management (SAP QM), Extended Warehouse Management (SAP
EWM) and SAP CRM
Key benefits
 Advanced Returns Management (SAP ARM) is a standard software
 Acceleration of the returns process
 Increased transparency, especially if you have to monitor the entire process from the end
customer to the supplier
 Improved management of warranty costs
 Contribution to the governance of the company
B&IT services
 Two-day scoping workshop based on an SAP demo system with returns scenarios, processes
and data
 Preliminary study to clarify the organizational/technical feasibility and to determine the scope
for Advanced Returns Management (SAP ARM)
 Prototyping based on Advanced Returns Management (SAP ARM)
 Implementation and Rollout of Advanced Returns Management (SAP ARM)

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