INVENTORY MANAGEMENT AND PROBLEMS RESULTING FROM RETURNS OF MERCHANDISE TO DEALERS

All dealers are familiar with the phenomenon of returned merchandise. As a precautionary measure, the customer orders more flooring boards then needed. Once the installation is completed, he or she returns one or more boxes of flooring boards. Returned merchandise can be a headache for dealers if the boxes have not been stored under ideal conditions prior to their return. Merely one box with variations in dimensions can seriously complicate what should have been a routine installation.

We recommend that such returns not be mixed in with the regular inventory. The dealer can check the moisture content of the wood using a hygrometer* without opening the box. If the MC is even slightly abnormal, the merchandise can be allowed to acclimatize in the warehouse until it returns to normal.

If the product was stored under totally inadequate conditions, it may be unusable. If such is the case, the dealer may refuse to reimburse the customer, who should have been advised how to store the wood.


MERCHANDISE RETURN POLICY

Owing to the problems and the losses that might possibly be incurred when merchandise is returned, Melrose recommends that dealers establish a merchandise return policy. If the rules and conditions are explained to the customer beforehand, a great deal of customer frustration will certainly be avoided.


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