SP-002 RETURNING RULES.docx

Contents SP-002: GLOSSARY 2 SP-002: RETURN RULES 3 Introduction 3 Strict No Return Policy 3 Exception Handling 3 Contractor Return Considerations (Return Exceptions Only) 4 Returning Empty Pallets 4 Restocking Fees 4 Customer Accommodation Request Form for Return Requests 5 SP-002: CREATING A RETURN...

Contents SP-002: GLOSSARY 2 SP-002: RETURN RULES 3 Introduction 3 Strict No Return Policy 3 Exception Handling 3 Contractor Return Considerations (Return Exceptions Only) 4 Returning Empty Pallets 4 Restocking Fees 4 Customer Accommodation Request Form for Return Requests 5 SP-002: CREATING A RETURN 6 Objective 6 Return Procedure 6 Sales Section 6 Warehouse Section 7 Admin Section 7 Tips & Shortcuts 8 Created on: 11/30/2023 Reviewed on: REV. 2 SP-002: GLOSSARY Fully Pulled Items: Items that were completely retrieved from the inventory and separated. Partially Pulled Items: Items that were only partially retrieved from the inventory and separated. Not Pulled: Items that were not retrieved or picked from the inventory and, therefore, not separated. All Picked Up: All items from the original order were successfully received or picked up by the customer. Partially Picked Up: Only a portion of the items from the original order was picked up by the customer, and the yard or warehouse. Not Picked Up: The customer did not pick up the items from the original order, and they remain in the yard or warehouse. Diplomatic language: Diplomatic language refers to the communication style and vocabulary used in the field of diplomacy. In Sales, it is characterized by a formal, measured, and often indirect tone to avoid misunderstanding or offense. In our industry, effective communication is crucial, and using diplomatic language can contribute to successful negotiations, customer satisfaction, and building a positive reputation for the salesperson and the company. Original Sales Order (Original SO): The primary Sales Order marking the beginning of the return process, which includes the items slated for return. This could be the very first Sales Order or an Extension depending on if it was already processed. Return Sales Order (Return SO): In the Return process, creating a new Sales Order may be generated specifically for returns, with products being inserted in negative quantities to facilitate and execute the return process. Extension Sales Order (Extension SO): This typically refers to an additional or supplementary order that extends or adds to the original sales order. This could occur for various reasons, such as a customer requesting additional quantities, modifications to the original order, or the need to address changes in the transaction. Example: When the customer decides to return or modify part of their order after the initial sales order has been processed, an extension sales order is generated to document this additional or altered transaction. This new sales order acts as an extension of the original one, allowing for a clear and organized way to handle changes, returns, or any adjustments made to the initial order. The extension sales order helps maintain accurate records, facilitate proper inventory management, and ensure transparent documentation of all transactions related to the customer's requests. Internal Notes: Internal Notes at Old Station serve as confidential, internal communications visible exclusively to the company's internal departments. These notes are crucial for conveying essential information related to sales orders, encompassing details such as return reasons, mishandlings, and miscommunications. Internal Notes also play a vital role as a historical record for each sales order, as it is mandatory for all sales representatives to document the order's history. To ensure accountability and traceability, each Internal Note must be initialed and dated by its author. Multiple notes from various authors, particularly those from Admins or Managers, are permissible and contribute to a comprehensive record of relevant information. SP-002: RETURN RULES Introduction This procedure outlines the rules and explanations regarding the return of products at Old Station Supply. While returns are generally discouraged, we recognize that exceptions may arise. It is imperative to follow these guidelines to maintain our commitment to quality and pricing standards. Any exceptions should be documented, and appropriate fees applied as outlined in this procedure. Strict No Return Policy All sales are Final · No Returns on Pavers/Walls/Natural Stones or Bulk Materials. Natural stones listed are a product of nature, they are subject to variation in texture, marking, color and must be installed properly. No claims will be accepted after installation. We do not generally accept returns to ensure that we can offer the best prices and guarantee our customers receive products in optimal condition. This policy helps us maintain our competitive pricing and ensures product quality. Our general policy stipulates that returns are not accepted from homeowners. When explaining our non-return policy, please emphasize the following diplomatic language: “Our No Return Policy is in place to uphold our commitment to ensuring that our customers consistently receive products in the best condition.” “While we used to accept returns, this practice was discontinued due to instances where customers inserted damaged pieces into the middle of the pallets. We understand that this does not apply to your case. However, if an exception were made for your return, we would be compelled to extend the same courtesy to every customer, potentially reintroducing the challenges we faced with inappropriate pallet contents in the past.” Exception Handling There are instances where exceptions may be made for loyal contractors who have demonstrated a consistent and positive working relationship with our company. In exceptional cases where a return is accepted, a 20% restocking fee will be charged for each returned item, and it is approved with Store Credit only (unless previously approved by a manager. If a contractor continues to ask for exceptions that aren’t approved by a manager first, please fill out an Accommodation Form and tell them that if it’s approved, they will see the store credit on their account. Diplomatic Language: “In the event that the pallet remains untouched and is returned precisely in the condition it was originally provided to you, and should we consider making an exception to accept the return following a thorough inspection, a restocking fee of 20% will be applicable for each returned item.” “The 20% restocking fee serves to offset the costs associated with labor involved in restocking, and additionally, if we opt to return the item to the vendor, we are obligated to cover their restocking fee.” “I understand why you would want an exception; I am going to have to submit your request and once approved by our manager, you'll see the corresponding store credit on your account. Thank you!" Contractor Return Considerations (Return Exceptions Only) Return Exceptions are made only under specific circumstances outlined below. For loyal contractors who have demonstrated a consistent and positive working relationship with our company, are subject to the following rules due to the complexities involved in inspecting returned pallets. Considered: Vendor Approved: If the vendor/brand has agreed to return the product because it was defective etc. Shelf or Bagged Products: Sole units may be returned if untouched, not damaged and in good condition. Pavers, Walls, or Natural Stone: Returns will be considered if the pallet remains fully wrapped and untouched from the date sold. Sales Representative Error: If an error is identified in our calculations, contractors are eligible to return the item. Bagged Pallets: Discounted bagged products sold as bundles must be returned only as a complete bundle, since they are originally sold at a discounted price. Customer’s Fault: If a return is due to a customer's mistake and it is clearly documented, notes should be added to the customer's account to ensure future transactions are handled with caution. Not Considered: Exchanges (Treads Only): Treads may not be returned, only exchanged if in untouched condition. Bagged Products: Sole units may not be returned if purchased as FULL pallets due to the discounted price received. No exceptions. Bulk Materials: Contaminated or not contaminated. No returns accepted and no exceptions. Returning Empty Pallets Efficient and responsible returns of empty pallets are encouraged by our customers. To streamline this process and ensure optimal handling please consider the following: Customers returning more than 10 empty pallets must separate them by brand. Failure to separate pallets will result in a $5.00 fee per pallet. Empty Pallets are only accepted within one year of their order. Restocking Fees Exceptions to the no-return policy are made under the following restocking fees: Restocking Fee Applicable: No Restocking Fee: Pavers, Walls, CMUs or Natural Stone: Needs fee if we had the product in stock and it was pulled and separated. Customer Mistake: If a return is due to a customer's mistake and it is clearly documented, notes should be added to the customer's account to ensure future transactions are handled with caution. Please see a manger for Restocking Fee approval. Shelf Products Bagged Products Company or Sales Representative mistake Swap or Exchange Ordered Items through Purchase Empty Pallets Items that were not pulled or separated Customer Accommodation Request Form for Return Requests We understand the diverse needs of our customers, recognizing that every individual is unique and may require specific accommodation to enhance their experience. Our accommodation request form serves as a valuable tool for customers to communicate their needs, allowing us to tailor our services and offerings accordingly. Here are some common return requests: Waive of Restocking Fee Receiving a refund in other ways other than store credit Some common and acceptable reasons to submit an accommodation request: If the customer looks or feels unsatisfied with our customer service If our company or representative made a mistake or error If the customer is loyal to Old Station and consistently buys high levels of inventory Some requests that will not be tolerated are: Returning opened pallets Returning units after buying it as a bundle Requesting for bundle price, although buying units only Whenever a sales associate encounters a new reason deviating from the established procedure, it necessitates an accommodation request. Sales associates are prohibited from creating their own rules or deviating from the outlined procedure if it is not explicitly specified. Any additional cases deemed acceptable reasons to submit a request or modify our procedures will be duly considered, documented, and subjected to a quarterly review. SP-002: CREATING A RETURN Objective To initiate a return, the Return Approval Form serves as a crucial document that navigates through a collaborative effort involving various departments within Old Station. Each department plays a unique role in assessing the return request, from the customer service team gathering details to the warehouse team verifying inventory status and more. Effective communication and coordination among these departments are key to streamlining the return approval workflow within each section below. Return Procedure Please begin filling out the Return Approval Form (Figure 1), gather the appropriate paperwork underlined below and follow the instructions carefully. After the return is complete, Emerson will review it with his initials and approval. Please note that Emerson's initials are unnecessary for returns from inside the store or exchanges. Documents Needed: Some paperwork may or may not include Return Approval Form, Original Pick Sheet, New Pick Sheet, Original Sales Order, New Sales Order, Sales Order Extensions and/or more. Sales Section Identify the Return Type: Fill out the customer’s information and identify whether the return is for items that are picked up or not picked up, or delivered, each scenario requires specific steps to ensure an efficient and accurate return process. Please read chart below to understand return scenarios in more detail: Type of Return: Already Picked Up / Delivered Items Not Picked Up / Not Yet Delivered Items Definition: If, items from the Original Sales Order were successfully received by the customer. If, the customer did not receive from the Original Sales Order, and the items remain in the yard or warehouse. Items were: All Picked Up, All Delivered, Partially Picked Up or Partially Delivered. Fully Pulled, Partially Pulled, or Not Pulled at all. Locate Original Pick Sheet: When processing a return, step number one is to locate the order’s Original Pick Sheet. In cases where the Original Pick Sheet is not available, (ex. when an order has already been processed), the alternative is to request a manager to generate and print one for your reference. Begin Return on Koble Systems: Using the knowledge above, follow the procedures below on our software. On the Original Sales Order, ship the quantity of product being returned and save the transaction. Create a new SO exclusively for the returning products, this new SO is now rebranded as the Return SO: Insert new lines of the products being returned in negative quantities. No additional items should be sold on Return Sales Orders. Include restocking fees under each item when applicable. (see Restocking Fee chart on page 4) Print New Pick Sheet: Print a New Pick Sheet and place it on top of the old one. Highlight and Annotate Pick Sheets: On both the Original and New Pick Sheets: Highlight returned items in yellow. Include the date, initials, and write "Return" on each returned item in red ink. Specify quantities if they differ from the original order (e.g. 9/24 Return 3 layers). Document the return reasons in Internal Notes, starting with your initials, adding the date, and specifying if the purchase department was communicated. Warehouse Section Warehouse Signature: Obtain the warehouse's signature on both Pick Sheets to acknowledge the return. The warehouse will check the products’ quality and accept the return if the product is in good condition. If, “Not Pulled” you don't have to get the yard manager signature and NO restocking fee. Admin Section Check Customer Credit: Quality control the steps that have already been taken by the previous departments. Next, Check if the customer has credit on their account. For homeowners, process the credit unless otherwise specified. For contractors, leave the credit on their account unless instructed otherwise. Record all findings in the internal notes. Review and Save Transaction: On the Original Sales Order, Review to ensure that the “Pulled by” column is correct and updated. Ensure that the “Item Status” column says, “returned on new invoice”. Pull and ensure appropriate all paperwork is gathered according to the type of return. Save the Sales Order. Email Detailed Reasons: Email detailed reasons for the return to [email protected]. Check reasons in Internal Notes, starting with your initials, adding the date, and specifying if the purchase department was communicated. Organize Paperwork: Position the Return Approval Form on top of the New Pick Sheet and place the Original Pick Sheet last. Attach all paperwork from front to back: Return Sales Order, Original Sales Order, remaining paperwork. Review and Approve: Give paperwork to Purchase and the next necessary departments. (See back of Return Approval Form) Emerson will review the return and approve it by signing his initials on the Return Approval Form. Once the return is approved, process the paperwork (see Manual SP-004 Processing). Please find Return Approval Form Case Studies attached to this manual to learn from real life examples. Tips & Shortcuts Date____________ Sometimes there are instances where taking a shortcut is appropriate. This is not always the case, so please follow the tips according to the specific instance. Using the Same Original Sales Order as a Return Sales Order: There are instances where you could use the same SO as the Return SO, ONLY if the following is applicable: In the Sales Section: When you begin a return on Koble Systems – if the items were “Fully Pulled” or “Not Pulled”, AND everything on the SO is being returned, proceed to return items on the Original Sales Order, (a new SO is not needed). In the Admin Section: When the Admin reviews and saves the transaction, if the items were “Fully Pulled” or “Not Pulled”, AND everything on the SO is being returned on the Original Sales Order, then ensure that the “Item Status” says, “returned on same invoice”. When a customer changes their mind: If you begin a return where the items are “Not Pulled” and the customer changed their mind and is keeping their order, please seek manager approval to; delete the return SO, print pick sheet and update the notes. If you make a sale and the customer changes their mind where an item is “Not Pulled” and wants to return it. Emerson’s initials are not necessary. Just return it on the same SO or return SO, both are fine. Emerson’s Initials: Emerson's initials are unnecessary for returns from inside the store or exchanges that haven’t left the store. A Return with a Unit of Measure Change: If a customer initially requests to pick up a full pallet (PL) and the order has already been paid for, but subsequently decides to modify the quantity to less than a full pallet, follow these steps to accurately adjust the unit of measure (PL) to align with the revised quantity. Verify the product description to establish the unit quantity in terms of layers. For example, if the description specifies that one Pallet is made up of 48 layers, understand that each layer is the unit of measure. If, for instance, the customer is returning 2 layers, and the product description indicates that 1 pallet consists of 48 layers. On the Original Sales Order, convert the originally specified 1 pallet to the 48 layers and only Ship 46 layers for the customer. This ensures fulfillment of the initially specified pallet while accommodating the customer's adjusted quantity. When an Extension Sales Order is generated for the remaining 2 layers, you may continue to return the 2 layers on this sales order, ensure accurate record-keeping and transparency in the internal notes. Packing List vs Pick Sheets: In the past, Packing Lists were used for returns when the customer was present. However, as of 2023, a significant procedural change dictates the use of Pick Sheets for all returns. This adjustment serves as a safeguard against errors, preventing new team members from inadvertently packing a product for the customer instead of returning it to inventory. In the future, we plan to streamline the return process by introducing a comprehensive Return Sheet, simplifying procedures for yard and warehouse personnel. The sole exception to this rule arises when the product remains unpulled from inventory, and a customer changes his mind on the spot before the inventory is touched. In such cases, it is permissible to cross out the packing list and process the return on the same invoice. SP-002: RETURNS TEST Section 1: GLOSSARY What is the definition of "Fully Pulled Items"? Items that were not retrieved. Items that were partially retrieved. Items that were completely retrieved and separated. Section 2: RETURN RULES Why does the company have a No Return Policy for certain products? To discourage customers from returning items. To maintain competitive pricing and ensure product quality. To increase the restocking fees. In the case of exceptions, who is the only customer allowed to request a return? Homeowners who spend more than $10,000. Loyal contractors who have consistently chosen Old Station as their #1 source of products. Customers who’s first purchase was more than 1 year ago. What is the diplomatic language used when explaining the No Return Policy to customers? "Our No Return Policy is in place to uphold our commitment to ensuring that our customers consistently receive products in the best condition." "Returns are not accepted due to the inconvenience caused." "We don't accept returns because it's company policy." When dealing with a return occasion that is not outlined in this manual, what is the correct step to take? Guess the procedure and what needs to be done. Go to the manager’s office and ask the manager for help in person. All other instances must be emailed to [email protected] for pre-approval. Section 3: CONTRACTOR RETURN CONSIDERATIONS Under what circumstances are returns considered for loyal contractors? If the customer is dissatisfied. If the vendor has approved the return or if there is a company/sales representative mistake. If the customer has ordered items in bulk. What is NOT considered for returns according to the text? Exchanges (Treads Only). Vendor Approved returns. Shelf or Bagged Products. Section 4: RETURNING EMPTY PALLETS What is the fee for customers who fail to separate more than 10 empty pallets by brand? $2.00 per pallet. $5.00 per pallet. $10.00 per pallet. Section 5: RESTOCKING FEES When is a restocking fee applicable for Bagged Products? If the product was purchased at full price and remains untouched. If the product is damaged during transportation. If the product is returned within 30 days. Section 6: CREATING A RETURN What is the objective of learning to create a return correctly according to the text? To generate revenue. To streamline the return approval workflow. To discourage returns from customers. What is the first step in the Return Procedure? Obtain Warehouse Signature. Check Customer Credit. Locate Original Pick Sheet. What form works as a checklist to help departments streamline a return? New Sales Order Customer Referral Form Return Approval Form When beginning a return, in the case of "Partially Picked Up" items, what should be done according to the procedure? Create a New Sales Order exclusively for returning products. Include additional items on returning Sales Orders. Ignore the Partially Picked Up items.