Contributed December 18, 2000 by SRIDHAR BURRA <SRIDHAR.BURRA@MEMO.IKEA.COM>

III. BENCHMARKING ANALYSIS - OTHER RETAILERS


1. Visit 2 local retail stores in each area (in Toronto, LA & Philadelphia) in order to do a comparison of the returns process used in these stores.  Purchase something from the store and return after sometime (Repeat this process with a few purchases).  During the return process, observe other customers who are returning items.  Specifically note:
a. The process used
b. Condition in which the returned items are
c. Paperwork required to be filled out
d. Time taken to process a return
e. Merchandise returned to inventory (by entering item number or by scanner)
f. The systems in use
g. Centralized process or decentralized process

2. Compare the process with our returns process noted.  Specifically note areas where we lag in technology, customer wait time, processing steps, etc.  Make necessary recommendations based on this analysis.



II. BENCHMARKING ANALYSIS - DISCUSSION WITH MANAGERS


1. Discuss with the Customer Service Business Manager and the Operations Manager in our stores about their prior work experience with other retailers.  Compare their experience with our store process.  Specifically note:
a. The process used
b. Condition in which the returned items are
c. Paperwork required to be filled out
d. Time taken to process a return
e. Merchandise returned to inventory (by entering item number or by scanner)
f. The systems and equipment in use

2. Compare this information with our store returns process.  Specifically note areas where our stores lag in technology, customer wait time, processing steps, systems, etc.
3. Discuss with the Customer Service Manager and the Operations Manager what improvements/changes they would like to see to better serve their customers (Note: Please do not make any guarantees to the managers).   Take detail notes as these suggestions will be tabulated and reported.


III. BENCHMARKING ANALYSIS - WITH OTHER STORES IN OUR COMPANY


1. Compare the returns process documented for each store you visited with the process in other stores.  Discuss extensively with other auditors who visited other stores.  Try to accumulate the best practices and drawbacks from the stores and document the findings in a table format.  
2. Tabulate the following key indicators obtained from the stores you visited and compare with the stores visited by other auditors:
a. Returns as a percentage of sales
b. Percentage returns by type of return (quality, customer changed mind, etc)
c. Returns to inventory versus returns to recovery
d. Percentage of recovery to as-is versus and to inventory
e. Average age of return
f. Percentage returns traced to original sales journal tapes in cash office
g. Percentage returns by tender type
h. Percentage and amount of credit vouchers cashed out
i. Percentage returns accepted without original receipt
Review the above table and identify any trends that should be addressed.  Make necessary recommendations.  
3. Tabulate the improvement/changes suggested by the Customer Service Managers and Operations Mangers (from audit step II 3 above) by store.  Use the results from the table to make necessary recommendations.