Advanced Returns Management
(SAP ARM) enables consistent
processes
Advanced Returns Management (SAP ARM) enables
consistent processes
Vienna, 08.10.2018
Monitoring the entire supply chain for returns from the end customer to the supplier
Challenges of the returns process
Both consumers and B2B customers are annoyed about products being defective, about the
installed process etc. and of waiting on the refund or repair
In many industries ordering or delivering more than required followed by a return is or has
become common practice
The returns process comprises a lot of variants which makes it difficult to implement the
process in an ERP system
In the context of a global supply chain, a high number of stakeholders is involved in the
returns process, e.g. customers, distributors, delivering plants and external vendors
Customer returns are expensive – for every company
Appropriate SAP functionalities for the returns process
In the past, various SAP modules, in particular SD (Sales & Distribution) and MM (Materials
Management), offered a variety of functions for returns processing. However, the
functionalities and data structures as a whole did not provide a complete picture, as important
functionalities and connections were missing. Insofar, the implementation of an integrated
returns process, especially in the context of a global supply chain, required considerable add-
on programming.
SAP recognized the need for action and, with Advanced Returns Management (SAP ARM),
provided comprehensive functionalities for the returns process as standard software.
Appropriate cockpits and flexible process flow control ensure that the returns process can be
monitored end-to-end, from the customer to the supplier. In addition a wide range of process
variants can be mapped.
.
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Business scenarios supported by SAP ARM
Customer returns
Supplier returns
Branch returns
Factory returns
Integrated end-to-end process for returns, starting at the end customer and leading through a
multi-stage supply chain to the manufacturing plant or supplier
Mapping of business models of life cycle management, such as parts cycles of spare or wear
parts, for example in the area of tool management
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Need additional information?
Key features of SAP ARM
Returns order (SAP ARM)
Material inspection
Logistical follow-up planning
Automatic document creation
End-to-End Process Monitoring
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Some highlights of the customer returns process
Returns Order – Trigger the customer returns process in SAP ERP
Returns Delivery – Transport article from customer to a company‘s location
Article Inspection – Verify the status of the returned articles as the basis for further logistical
steps and the financial settlement with the customer
Logistical Follow-Up – Move the returned articles to the final destination
Customer Refund – Determine the refund amount that the customer is to receive for returned
articles
Billing – Payout the refund to the customer using credit memos
Returns Overview – Monitor the customer returns process
Important ARM features
Convenient user interface
Cockpits for monitoring the returns process
Handling of a large number of process variants – All major returns scenarios are being
supported
Versatile process control options
Uniform document flow
Integration into complaints management
Integration with Quality Management (SAP QM), Extended Warehouse Management (SAP
EWM) and SAP CRM
Key benefits
Advanced Returns Management (SAP ARM) is a standard software
Acceleration of the returns process
Increased transparency, especially if you have to monitor the entire process from the end
customer to the supplier
Improved management of warranty costs
Contribution to the governance of the company
B&IT services
Two-day scoping workshop based on an SAP demo system with returns scenarios, processes
and data
Preliminary study to clarify the organizational/technical feasibility and to determine the scope
for Advanced Returns Management (SAP ARM)
Prototyping based on Advanced Returns Management (SAP ARM)
Implementation and Rollout of Advanced Returns Management (SAP ARM)
