Procurement Glossary
Return delivery: definition, processes and management in Procurement
November 19, 2025
Return delivery refers to the process of returning goods or materials to the supplier due to quality defects, incorrect deliveries or other deviations from the agreed specifications. In procurement management, it is a critical building block for quality assurance and supplier relationships. Find out below what return delivery involves, what methods are available and how you can minimize risks.
Key Facts
- Returns are due to quality defects, incorrect deliveries or specification deviations
- On average, return deliveries cause 2-5% additional procurement costs
- Digital tracking systems reduce return delivery times by up to 40%
- Clear return delivery agreements minimize disputes with suppliers
- Reverse logistics require special logistics processes and documentation
Contents
Definition: Return delivery
Return delivery includes all activities for the return of goods that do not meet the agreed requirements or must be returned for other reasons.
Core elements of the return delivery
A structured return delivery includes several essential components:
- Identification and documentation of the reason for return
- Coordination of the physical return shipment
- Processing of replacement deliveries or credit notes
- Tracking and analysis for process improvement
Return delivery vs. complaint
While complaints management covers the entire complaints handling process, return delivery focuses specifically on the physical return transportation of the goods. Both processes are closely interlinked and require a coordinated approach.
Importance of return deliveries in Procurement
Efficient return delivery processes are crucial for security of supply and contribute to cost control. They directly influence supplier relationships and the operational efficiency of procurement logistics.
Methods and procedures
Various methods enable systematic processing of return deliveries and minimize effort and costs.
Structured return delivery processing
A standardized process ensures uniform quality and traceability:
- Immediate reporting and documentation of the problem
- Assessment of urgency and impact
- Coordination with supplier and internal stakeholders
- Physical return with complete documentation
Digital return delivery tools
Modern IT systems support efficient processing through automated workflows and tracking functions. Digital procurement enables seamless integration into existing purchasing processes.
Supplier integration
Suppliers are integrated into the return delivery process through clear agreements and joint systems. This includes defined incoterms for return shipments and clear responsibilities.
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Important KPIs for return deliveries
Key figures enable the systematic monitoring and optimization of return delivery processes.
Quantitative performance indicators
Key metrics for evaluating redelivery efficiency:
- Return rate (number of returns / total deliveries)
- Average processing time per return delivery
- Costs per return delivery case
- Replacement time for replacement deliveries
Quality indicators
These indicators evaluate the effectiveness of return delivery processing and identify potential for improvement. Integration into claim management enables a holistic view.
Supplier-related metrics
Supplier-specific KPIs support the evaluation of cooperation and the identification of problematic partners. This is incorporated into the suitability test for future suppliers.
Risks, dependencies and countermeasures
Return deliveries involve various risks that can be minimized by taking appropriate measures.
Operational risks
Delays in return deliveries can cause production downtimes and impair the ability to deliver. Unclear processes lead to additional work and cost increases.
Financial impact
Returns cause direct costs due to transportation, handling and administration. Indirect costs are also incurred due to production interruptions and capital tied up in defective materials.
Supplier relationships
Frequent return deliveries can strain supplier relationships and lead to conflicts. Preventive measures include:
- Clear quality agreements and acceptance criteria
- Regular supplier evaluations
- Joint improvement initiatives
- Transparent communication in the event of problems
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Practical example
An automotive supplier implements a digital return delivery system for faulty electronic components. When a faulty delivery is received, a return delivery order is automatically generated, the supplier is notified by the system and a replacement part is requested from the emergency stock. The system documents all steps and automatically generates reports for the quality department.
- Reduction in processing time from 5 to 2 days
- Cost savings of 30% through optimized processes
- Improved supplier communication through transparency
Current developments and effects
Digitalization and changing market requirements are having a significant impact on the development of modern return delivery processes.
AI-supported return delivery optimization
Artificial intelligence is revolutionizing return delivery processing through predictive analytics and automated decision-making. AI in Procurement enables the prediction of return delivery probabilities and optimizes transport routes.
Sustainable reverse logistics
Environmental aspects are becoming increasingly important for return deliveries. Companies are developing sustainable transportation concepts and reuse strategies for returned materials.
Blockchain-based transparency
Blockchain technology creates immutable documentation of return delivery processes and increases transparency throughout the entire supply chain visibility. This reduces disputes and speeds up handling processes.
Conclusion
Return deliveries are an unavoidable part of procurement management that can be managed efficiently using structured processes and digital tools. Integration into the overall purchasing strategy and close collaboration with suppliers minimize risks and costs. Modern technologies such as AI and blockchain offer new opportunities for optimization and create transparency in complex supply chains.
FAQ
What are the most common reasons for returns?
The main causes are quality defects, incorrect deliveries in terms of specification or quantity, transport damage and late deliveries. Changes in requirements can also make return deliveries necessary.
Who bears the costs for return deliveries?
The distribution of costs depends on the cause. In the case of supplier errors, the supplier usually bears the costs, while the buyer bears the costs if the buyer requests changes. Clear contractual regulations are essential.
How can the return rate be reduced?
Preventive measures include improved supplier qualification, detailed specifications, regular quality audits and close cooperation with suppliers. Better incoming goods inspections can also reduce return deliveries.
What legal aspects need to be considered when returning goods?
Important points include warranty rights, limitation periods, documentation requirements and international trade regulations. Customs and tax aspects are also relevant for cross-border returns.
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