Returns Made Easy

Automated, scan-based returns processes with pLG WMS

Rücksendung am modernen Packarbeitsplatz

These figures are shocking not only for online retailers: More than 500 million shipments containing over one billion items are returned each year in Germany alone—with the fashion and textile industry leading the way (Source: EHI Retail Institute and the Returns Management Research Group at the University of Bamberg).

The return rate for textiles and shoes ranges from 20 to 50 percent. Each individual return costs retailers an average of 5 to 10 euros for shipping, inspection, and processing, resulting in total losses amounting to several billion euros.

Added to this are external costs resulting from CO₂ emissions—for example, approximately 1,500 grams of CO₂ equivalents per returned fashion item, which cause climate-related damage amounting to hundreds of millions.

For fast-growing e-commerce startups, managing returns as efficiently as possible is a strategic success factor. The reality is quite different: While many companies are continuously optimizing their processes for receiving and shipping goods, returns often remain a bottleneck. Manual checks, data discrepancies, and long processing times tie up valuable resources and delay the return of saleable merchandise to inventory.

The good news: Modern warehouse management systems now enable largely automated, scan-based returns processes. Solutions like pLG WMS lay the groundwork for processing returns quickly, transparently, and with minimal manual effort—and even turn what might seem like a cost factor into a competitive advantage.

Returns are no longer a special process

Many companies still treat returns as an exception. In fact, as business volume grows, returns are evolving into a logistics process in their own right, with high demands on speed, transparency, and data quality.

Startups, in particular, often follow the same growth trajectory: In the early stages, returns can still be processed manually. However, as soon as several hundred or thousand returns are received each day, these processes reach their limits. Professional returns management must therefore be organized just as efficiently as the shipping process itself.

Consequences of Poor Returns Management:

long turnaround times
high personnel costs
Delayed Refunds
Inaccurate inventory
unnecessary inventory movements
declining customer satisfaction

Speed Determines Revenue

Any returned merchandise ties up capital until it is available in inventory in a condition suitable for resale.

Here’s an example: A customer returns an undamaged product. If the return isn’t processed until three or four days later, the item is listed as out of stock in the online store during that time—even though it could actually be resold immediately.

The faster the inspection and restocking are completed, the sooner the merchandise will be available for sale again. This can make a significant economic difference, especially for high-demand products or seasonal items.

A scan-based process supports precisely this goal: Instead of time-consuming manual documentation, all relevant information is digitally captured and processed immediately upon receipt of goods.

Scanning Instead of Paper—Getting Started with Automated Processes

Today, the barcode is much more than just an identification feature. It serves as the starting point for a fully digital process chain. As soon as a return arrives, the employee identifies the shipment by scanning it. This eliminates a large portion of manual data entry and speeds up processing. At the same time, the risk of data entry errors is significantly reduced.

Warehouse management systems such as pLG WMS automatically detect:

the original order
the customer
the article
the quantity ordered
Existing serial numbers or lots
the current processing status

Intelligent decision-making logic replaces manual routines

Not every return requires the same amount of processing. A modern warehouse management system can automatically route returns through different process paths based on the inspection results.

The employee is guided step by step through the respective process. Individual decisions need to be made only where they are actually necessary. This results in standardized procedures with a high degree of process reliability.

Typical decisions made as part of a returns process:

Put it back immediately
Perform a quality inspection
Arrange for cleaning or processing
Request a Repair
Book a secure storage facility
Prepare for Disposal
Arrange for the return to the supplier

pLG WMS digitizes the entire returns process

With pLG WMS, proLogistik provides a warehouse management system that seamlessly integrates returns into the overall warehouse logistics process. Instead of managing returns separately, they become part of the same digital process landscape as goods receipt, putaway, order picking, and shipping.

All information is processed centrally and is immediately available for further processing.

pLG WMS supports the returns process with the following functions, among others:

Scan-based identification
automatic process control
mobile data collection
Real-time inventory updates
Status Tracking
Quality Checks
Return to inventory
Reporting

Real-time information creates transparency

For digitalization managers and logistics managers, transparency is a key success factor. A modern warehouse management system provides up-to-date metrics at all times, such as the number of returns received or the average processing time. This and other information (see table below) enable continuous process optimization.

In addition, recurring patterns can be identified. For example, if returns of certain products or product variants are becoming more frequent, the findings can be forwarded directly to purchasing, product management, or customer service.

A modern WMS provides the following up-to-date metrics:

Number of Returns Received
average processing time
Re-stocking rate
Quality defects
Reasons for Returns
Utilization of Returns Workstations

Mobile devices speed up processing

Scan-based returns processes are most effective when used in conjunction with mobile devices. Employees receive all work instructions directly on their mobile scanners or handheld devices.

For example, the system displays which product is being inspected or where the goods are to be stored afterward. This eliminates any gaps in data flow between paper lists, Excel files, and various IT systems.

For example, pLG WMS communicates the following information via mobile devices:

which product is being tested
what testing steps are required
where the goods are to be stored afterward
what specific considerations need to be taken into account

Data Quality Becomes a Competitive Advantage

The faster a company grows, the more important a consistent database becomes. After all, returns affect numerous areas of the business and key performance indicators.

When returns are processed promptly and accurately, all connected systems benefit from up-to-date information. For customers, this means, for example, faster refunds, up-to-date delivery availability, and transparent processing statuses.

At the same time, the company gains greater control over its entire supply chain.

Returns affect numerous business areas and key performance indicators:

Stock
Product Availability in the Store
Financial Accounting
Customer service
Purchasing
Quality management

Scalability for Growing Businesses

A key characteristic of successful startups is their dynamic growth. What starts today with just a few hundred orders a day can grow to many times that amount within a short period of time.

Returns processes must be able to handle this growth without requiring fundamental organizational changes. A warehouse management system such as pLG WMS supports this scalability through standardized workflows and automated decisions, among other features.

This makes it possible to handle rising return volumes without having to increase staffing levels proportionally.

pLG WMS facilitates expansion through the following features:

standardized workflows
flexible process rules
mobile workstations
Real-Time Control
automated decisions

From Cost Center to Optimization Tool

Modern returns processes not only deliver operational benefits but also generate valuable data for strategic decision-making.

For example, the information collected can provide insights into products that are particularly prone to returns or seasonal trends. As a result, returns management evolves from a mere cost center into an important source of information for the continuous improvement of the business model.

Possible insights from the data collected in the WMS:

products that are particularly prone to returns
Common Reasons for Complaints
Quality issues with individual suppliers
Packaging Defects
seasonal trends
Opportunities for Optimization in the Online Store

Future Outlook: Automation and AI

The digitization of returns management is still in its early stages. The first solutions that use artificial intelligence to automatically classify returns are already being developed.

Possible applications include, among other things, AI-driven prioritization of returns or forecasts of resale probabilities. A powerful warehouse management system provides the technological foundation on which such innovations can be gradually integrated.

Using AI for the Automatic Classification of Returns:

Automatic image recognition for damage assessment
AI-Driven Prioritization of Returns
Forecasts of Resale Probabilities
Intelligent Storage Location Optimization
Automated quality assessments

Conclusion:

In e-commerce, returns are not simply an unavoidable burden of doing business, but rather one of the processes with the greatest potential for optimization. For growing startups in particular, fast and error-free processing is crucial to how efficiently capital is utilized, inventory is managed, and customer expectations are met.

Scan-based returns processes can significantly reduce manual tasks, shorten processing times, and prevent errors. pLG WMS supports this transformation through end-to-end digitization—from identifying returns and applying automated decision rules to updating inventory in real time.

For digitalization managers and logistics directors, this means much more than just more efficient warehouse logistics: they are laying the foundation for scalable processes, high data quality, and a returns management system that keeps pace with the company’s growth. In this way, an operational challenge becomes a building block for the company’s long-term success.

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Tel.: +41 (0) 44 200 40-00
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FAQ – Frequently Asked Questions About pLG Notification

In Germany alone, more than 500 million shipments containing over one billion items are returned each year—the fashion and textile industries are particularly affected, with a return rate ranging from 20 to 50 percent.

Each return costs retailers an average of 5 to 10 euros for shipping, inspection, and processing. In total, this results in losses amounting to billions—not to mention external costs from CO₂ emissions of about 1,500 grams per returned fashion item.

As long as a returned item has not been inspected and restocked, it ties up capital and is not available as inventory in the online store. The faster the processing, the sooner the item can be resold—especially in the case of high-demand or seasonal products.

Using scan-based identification, the system automatically recognizes the original order, the customer, the item, the quantity, serial numbers or lot numbers, and the processing status. This eliminates a large portion of manual data entry and reduces data entry errors.

Depending on the inspection results, pLG WMS directs items along different process paths—such as immediate restocking, quality inspection, cleaning/reprocessing, repair, posting to quarantine stock, disposal, or return to the supplier. Employees are guided through the process step by step.

Employees receive work instructions directly on scanners or handheld devices—such as which product is being inspected, what inspection steps are required, and where the goods should be stored. This eliminates any gaps between paper lists, Excel files, and IT systems.

These include the number of returns received, the average processing time, the restocking rate, quality defects, reasons for returns, and the utilization rate of the returns workstations.

Standardized workflows, flexible process rules, and automated decisions make it possible to handle increasing volumes of returns without proportionally increasing staffing costs—a key factor for scalable growth.