...using anti-fraud functionality from Strategix will help businesses effectively combat returns fraud...

It's a fact of life that some products ordered by your customers will be returned and with margins going down and the ‘grey’ markets still there, that a significant proportion of these will be fraudulent. In fact, shrinkage (which is what returns fraud boils down to) is quite likely to be even higher in the high tech sector than on the high street. The important thing therefore, is to have the right systems in place to catch the cowboys.

Returns fraud is at least as likely to be perpetrated by your customers as your staff and, as market conditions get tighter, the frequency is increasing. For example: a customer could buy an item with a warranty from your organisation, but unbeknown to you, also buys 10 ‘grey’ imports of the same make and model without warranties. If you don’t have a clear system for tracking the product you sell, how can you know whether the item they returned was the one they bought from you or one of the "grey" imports? Unscrupulous dealers will buy ‘grey’ product and return it as though they’d bought it on the fully warranted market from a particular distributor in order to get the benefits of the warranty.

Implementing a reliable returns management system can significantly contribute to improved inventory management, returns tracking and radically reduce your overall costs. Strategix has already implemented such systems for companies such as Azlan, Eurodis, Avnet, Virgin Mobile, William Wilson and Midwich.

about strategix
Strategix is a leading European software house, dedicated to the development and rapid deployment of supply chain software.

We focus on the wholesale and retail distribution, logistics and service sectors where our software maximizes supply chain efficiency and accelerates customer service. Our systems are designed for reliability, availability and performance. Our customers enjoy a rapid return on their investment and genuine competitive advantage.

Focused on key growth sectors which range from high technology to household and building products, Strategix numbers businesses such as Fired Earth, Fuller Smith & Turner, Jewson, London Underground, MacLean Electrical, Midwich, Routeco, Virgin Mobile and Wolseley among its customers.

september 2002

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