Product returns management in the apparel industry - Diesel Spa case.

Abstract

Product returns are becoming an increasing issue for many organizations, especially because of the development of the modern distribution channels and the subsequent increasing customer protection. However, as the literature has defined them, they are a "necessary evil" in nowadays businesses; therefore, organizations have somehow to deal with them. In this sense, organizations should develop effective and efficient programs for managing product returns, therefore maximizing their contribution to the organization's bottom line. The present dissertation supports this assumption, showing how a well-established company in the apparel&fashion industry (Diesel Spa) implemented a new process for managing product returns, with the main aim of increasing the profits that could be obtained from them. More specifically, through an AS IS - TO BE analysis, it is shown how much the new process will be more profitable as compared to the old one. The dissertation is hence composed by four parts. In the first section, the relevant literature has been analysed, showing how scholars have addressed the topic of product returns management in the apparel industry. In the second and third sections, instead, the AS IS and TO BE processes have been described and evaluated on a series of KPIs. Finally, in the fourth part, some scenario analyses have been performed. In the last chapter, instead, the main conclusions have been derived and the limitations of the study have been highlighted.