Retail businesses often face a common challenge — high return rates. These returns not only impact profitability but also erode customer trust and slow down operations. A large multi-format retailer recently faced this exact issue, with return rates reaching up to 30% in some categories.
They operated across diverse formats — fashion, electronics, and fresh produce — and were struggling to manage operations consistently. Each format had its own way of working, leading to misalignment, errors in product dispatch, and confusion in inventory handling.
Here’s how BiZillion Innovations partnered with them to address these issues and drive measurable results.
The Challenge
The retail chain had multiple operational challenges:
- Disjointed processes across formats: There was no unified approach. Each business format — whether fresh, lifestyle, or general merchandise — operated independently, leading to inefficiencies.
- Incorrect product dispatches: Without clear product identification and dispatch controls, wrong items were often shipped, which directly contributed to returns.
- Lack of quality-based segregation: Especially in fresh produce, there was no way to categorize inventory by quality level, making it difficult to manage pricing, shelf life, and inventory turnover.
- High volume of retail returns: These issues combined to result in a high volume of product returns, increasing logistics costs and damaging customer satisfaction.
The Approach
To solve this, BiZillion implemented a structured and scalable transformation plan built on SAP technologies:
1. 80-20 Process Standardization Model
We created a core template covering 80% of the standard business processes that applied across all formats. The remaining 20% was customized to meet the unique needs of each format. This approach significantly reduced project timelines and simplified maintenance.
- Outcome: The time required to roll out solutions for each new format was cut by 50%.
2. Barcode-Driven Warehouse Operations
We introduced a barcode-enabled solution across the warehouse and dispatch operations. Products could now be identified and verified at each step — from picking to packing to dispatch.
- Outcome: Accurate product dispatches and elimination of mispicks, leading to a drastic reduction in retail returns.
3. Quality-Based Batch Management for Fresh Produce
Using SAP’s batch management capabilities, fresh items were grouped and tracked based on quality levels. Each quality group was linked with the appropriate pricing and shelf-life expectations.
- Outcome: More control over pricing and inventory, reduced waste, and better customer satisfaction.
The Results
After implementation, the retailer saw significant improvements across operations:
- Retail returns across all formats dropped to zero within few months of go-live
- Warehouse operations became faster and more accurate
- Fresh produce inventory was better managed by quality and batch
- Customer trust improved, leading to increased store footfall
Conclusion
Retail returns are a major pain point — but they are solvable.
With the right mix of standardized processes, technology-led warehouse operations, and inventory controls, businesses can not only reduce returns but also improve efficiency and customer experience.
At BiZillion Innovations, we specialize in solving practical challenges like these by combining business expertise with SAP-led transformation. If you’re facing similar issues in your retail or distribution operations, we’d be happy to connect.