Return to Vendor (RTV)

The process of shipping defective, recalled or surplus stock back to the supplier under an agreed debit-note or credit arrangement, with full paperwork and audit trail. The discipline matters because returned goods are simultaneously a cost (transport, handling, write-down), a revenue-recovery opportunity (refurbishment, B-stock channel) and a compliance exposure (recall traceability, hazardous waste, GDP). A warehouse that handles Return to Vendor (RTV) well treats it as a managed process with reason codes, disposition rules, grading standards and reported KPIs — not as an ad-hoc back-room activity.

• Authorisation upstream — every return is pre-approved with an RMA carrying reason code and expected items.
• Receipt is matched against the RMA — unmatched returns are quarantined, not blindly accepted.
• Inspection and grading are done to a documented standard — not at the inspector's discretion.
• Disposition is rule-driven — restock, refurbish, RTV, donate, destroy — never default-to-scrap.
• Stock-status moves are recorded — returned, quarantined, refurbished, scrapped — with full audit trail.

• Tie every physical receipt to an open RMA — no anonymous returns into sellable stock.
• Run the grading station with a documented condition standard and reference photos.
• Trigger disposition from a rules table — value, condition, regulatory status — not operator judgement.
• Quarantine first, disposition second — never restock on the receiving dock.
• Capture serial numbers on receipt for traceability into recall and warranty data.

• No RMA discipline — back-of-truck returns accepted without paperwork.
• Restocking on the dock — defective or tampered units go back to sellable stock.
• No condition-grading standard — disposition varies by inspector mood.
• Manual disposition decisions on every unit — slow, inconsistent, unauditable.
• Returns counted as inbound receipts in KPIs — masking the true cost of returns.

• E-commerce apparel — high-volume returns with apparel-specific grading and re-tagging.
• Consumer electronics — refurbish-and-resell as a major secondary channel.
• Pharma — GDP returns require quarantine, QP disposition and tamper-evidence checks.
• Industrial parts — RTV to supplier under warranty agreements dominates the flow.
• Hazardous goods — destruction route with witnessed certificate of destruction.