JohnCraze said:
Hi Folks,
Does anyone out there come across procedure on RMA (Return Material Authorisation). A sample of any kind for my reference will be much appreciated!
Regards,
JohnC
I am sorry I don't have a sample Procedure for you, but I can tell you that you need to have a process in place to delineate valid reasons for allowing a customer to return goods.
For example:
Allow instant return if your own records show you shipped wrong goods (identity or overshipment, or in some other way violated the terms of the contract with the customer - like shipping too late or too early if the contract says goods may be returned or refused under those conditions.)
Defer authorization if the nonconformance is a minor correctable (missing documents, short count) to see if customer will hold goods until you correct error.
Defer authorization until you can confirm major nonconformance in form, fit, or function of the product, which may mean emailed photos of damaged goods, or air expressed samples of nonconforming products (i.e. customer's incoming inspection is at variance with your outgoing inspection), or sending an employee or agent to examine the goods at customer's, giving the agent power to issue RMA if the nonconformance is confirmed.
Contract Review
The topic of RMA should be addressed in ALL contracts with customers. Typically, a well-run organization lists reasons to issue an immediate RMA and reasons to defer issuance until the nonconformance can be confirmed by the producer or his agent. In my own organization, a request for an RMA is routed through our Material Review Board (MRB), comprised of a multi-discipline team (Quality, Production, Administration, Purchasing, Engineering, Sales) who are empowered to use any and all resources necessary to resolve the question of nonconformance. Since they are multi-discipline, they are also empowered to expedite a request (for reasons including, but not limited to, "sucking up to a good customer") for an instant RMA.
The one thing we do
not do is leave the matter in the hands of a shipping clerk. A request to return goods is a serious matter which may signal a major breakdown in the production process which may trigger a shutdown of processes to prevent producing scrap. Incidentally, the back and forth freight costs of an RMA (usually borne by the seller) can affect profit pictures substantially. One option our MRB may use is to authorize a confirmed nonconforming (form, fit, function) shipment to be scrapped by customer rather than waste money shipping it. Obviously, you may want to confirm the destruction of the nonconforming material or determine and recoup any salvage value.
The bottom line:
An RMA should be considered an important topic and treated with due regard for ramifications throughout the organization.
Things to consider:
- Is there a possibility other shipments to same or other customers are affected?
- Is there a serious glitch in the seller's production or inspection procedures?
- Are seller and customer in true agreement about the product specifications?
- Is there a possibility customer's inspection is in error?
- Is there a possibility there is a factor other than nonconformance which is the reason for customer's request for RMA? (desire to get out from under an overpurchase situation?)