IN THIS SECTION

Returns

While the vast majority of a Vendor's time and effort is dedicated to the business of making and selling boating products, concern must also be devoted to the effective processing of Returns. Customers may wish to return material to a vendor for a multitude of reasons such as defects, order or shipping errors and stock adjustments. In the event that Merchandise Returns to a Vendor are necessary, it is important that all parties adhere to certain standard practices. Failure to do so results in wasted time and resources, costing both parties money. Baring any specific contractual terms between the Customer and the Vendor to the contrary, the following basics regarding Returns Processing should be adhered to.

Merchandise Screening


Prior to any merchandise Return to a manufacturer, the customer is obliged to perform a physical inspection of the parts. This merchandise screening process is intended to cull out those parts which do not adhere to the agreed upon Return specifications.

Authorization


Customers must obtain Return Authorization (RA) before any material is returned to a Vendor.

  1. In the event the Return is for defective material, Customer must only return parts covered by the conditions of the Vendor's warranty, or prior agreement. The most common reasons Vendors reject defective returns include:
    • Product is out of warranty (time).
    • Warranty conditions (required paperwork or back-up support information such as receipts) are not included or available.
    • Cannibalization (not product failure) is the reason for the return.
    • The Vendor to whom the product is returned did not make the product. It was actually made by a competitor.
    • The product is damaged, not defective (Customers can determine this when it is obvious).
  2. Customer must contact vendor via phone, (or preferably) fax or email to obtain a Return Authorization Number (RA#). In order to avoid unnecessary / time consuming disputes, it is highly recommended that all pertinent detail information be provided in support of the Return Authorization. When requesting an RA#, Customers should supply vendors with:
    • Date of Return Request
    • Vendor part number
    • Part descriptions
    • Return quantity requested
    • Reason for return
    • Original PO # if available (or a recent PO when purchased)
    • Unit cost
    • Extended product cost

Return Process, Material Evaluation and Credits


  1. After receipt of RA#, Customer may return merchandise to Vendor.
    • Customer is responsible for packing Merchandise to prevent (possible additional) damage.
    • Shipment must be marked with the RA#.
    • If provided by the Vendor, a copy of the RA form must be included with the shipment and any provided shipping labels used. If no forms are provided by the Vendor, Customer should include a memo with the shipment indicating the RA# and all pertinent information (see B above) about the shipment.
    • Unless otherwise agreed upon, merchandise should be shipped the most economical way and insured against shipping damage.
  2. Upon receipt of the first request for Return from the Customer, the Vendor must respond within five (5) business days providing customer with a RA# or the reason the Return will not be authorized.
    • If the Vendor fails to respond in time, the Customer will make a second request (in writing and noting that it is the second request) for Return Authorization.
    • If the Vendor again fails to respond to this second request within two (2) business days, the Customer will be authorized to return the shipment in accordance with the guidelines noted in section A above.
  3. Upon receipt of returned merchandise, Vendors must make their evaluation and decisions on acceptance or rejection of the Return.
    • If accepted, credit to the Customer must be issued within 30 days of shipment (to the Vendor). The credit memo should clearly identify the return and include any applicable RA #s.
    • If rejected, the Customer must be contacted for instructions on the disposition of the material within thirty (30) days of shipment (to the Vendor). Vendor must provide specific reasons as to why credit has been denied for each item.
    • Debit / Credit memos issued by the Customer or Vendor should clearly reference RA#, RTV Number, PO Number, Invoice Number, Part Numbers and Extended Cost.

NOTE: It is in the best interest of both parties to resolve all issues (especially the final value) surrounding returns before debits and credits are issued in order to avoid expensive, time consuming disputes.